• Whistleblower of the Week
Subscribe to Newsletter
No Result
View All Result
Whistleblower Network News
  • Government
  • Legislation
  • False Claims
  • Corporate
    • Dodd-Frank
    • IRS & Tax
    • SEC
    • Sarbanes-Oxley
  • OSHA
  • Environment
  • Opinion
  • Editorial
Whistleblower Network News
No Result
View All Result
Home Corporate

Smart Home Tech Company Settles FIRREA Whistleblower Case With DOJ For $3.2 Million

Peter BriccettibyPeter Briccetti
January 13, 2021
in Corporate, News, SEC
Reading Time: 3min read
0
FIRREA whistleblower
Share on TwitterShare on FacebookShare on LinkedInEmail

Vivint Smart Home Inc. (Vivint), a company that makes and installs smart home technology such as security systems and smart home automation systems, has agreed to pay the government $3.2 million for alleged violations of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA). 

The case was originally brought against the Provo, Utah based company by a whistleblower, or declarant as they are called under FIRREA. According to a January 6 Department of Justice (DOJ) press release, Vivint representatives made false statements in order to convince a federally insured financial institution to provide prospective Vivint customers with financing for Vivint products. 

The DOJ claims that the door-to-door sales representatives for Vinvint paid out-of-pocket for the first payments of financial payment plans that may not have been otherwise approved by the financial institutions. Between 2017 and 2020, these representatives allegedly mislead the financial lenders to believe that the original payments had been made by the customers. U.S. Attorney John W. Huber said of the settlement: “American business should be based on truthful disclosures, and false and misleading statements should never be part of dealings with federally insured financial institutions.” 

FIRREA’s whistleblower program allows declarants to make disclosures about fraud and may be eligible for a reward. The size of the reward the whistleblower receives is based on the amount the government repossessed from the accused company up to $1.6 million. FIRREA has often been compared with the False Claims Act, an anti-fraud law that allows whistleblowers to bring suits on behalf of the government and obtain rewards. However, the False Claims Act has produced far more cases, settlements, and sanctions, than FIRREA and therefore has been perceived as far more successful. 

One reason the False Claims Act is perceived as more successful is the rewards whistleblowers may obtain under the law. While the False Claims Act has no ceiling for rewards and is based on a minimum to maximum percentage of the total monies recovered, FIRREA rewards max out at $1.6 million. While this may not seem like much, many of the potential actors who are likely to be in a position to file a disclosure through FIRREA make far more per year than $1.6 million, making it unlikely that they will be effectively incentivized or compensated. For example, in this case, the declarant if awarded the maximum amount would be handsomely rewarded nearly 50% of the sanction. However, in an instance where a much larger fraud was uncovered – one that amounted in a tens of millions of dollar sanction against the violating company – the whistleblower percentage would be significantly smaller in comparison. In a $16 million sanction, a maximum award would only amount to 1%. 

Read the DOJ’s press release here.

Read the National Whistleblower Center’s (NWC) article on FIRREA as a whistleblower law here.

Protect Yourself: Purchase the New Whistleblower Handbook Protect Yourself: Purchase the New Whistleblower Handbook Protect Yourself: Purchase the New Whistleblower Handbook
Tags: Department of JusticeFalse Claims ActFIRREASEC
Peter Briccetti

Peter Briccetti

Peter Briccetti is a contributing editor with Whistleblower Network News. He writes about breaking whistleblower news, and False Claims Act whistleblowers, FCPA whistleblowers, and tax fraud whistleblowers. Peter is a graduate of Hamilton College with a degree in History and an interest in politics and anti-corruption law. At Hamilton, he wrote for the Hamilton College Spectator as an editor and contributor.

Write a Letter to The Editor.

Most Popular

Breaking: Representative Connolly Introduces Bill to Reauthorize MSPB

SEC Awards Whistleblower Over $9.2 Million for Related Actions by DOJ

Whistleblower of the Week Podcast Episode One: Heidi Weber

Congress Should Demand Merrick Garland Commit to Fixing the DOJ’s Whistleblower Programs

Robert Bosch GmbH Leaves It to Whistleblowers to Hire a Lawyer

SEC Pays Whistleblowers $3 Million in First Awards of New Administration

Whistleblower Poll

Increased Whistleblower Protections
Legislation

Candidate’s Position on Increased Whistleblower Protections Influences 44% of Likely Voters

byAna Popovich
October 6, 2020

Protect Yourself: Buy the New Whistleblower Handbook Protect Yourself: Buy the New Whistleblower Handbook Protect Yourself: Buy the New Whistleblower Handbook
ADVERTISEMENT
ADVERTISEMENT

STAY INFORMED. Sign up for daily whistleblower email and social notifications from the Whistleblower Network News.

  • This field is for validation purposes and should be left unchanged.

Qui Tam

  • Dodd-Frank
  • IRS & Tax
  • SEC
  • Foreign Corruption
  • False Claims-Qui Tam

Retaliation

  • OSHA
  • Sarbanes-Oxley

Government

  • Government
  • Intelligence
  • Legislation
  • Veterans

Features

  • Whistleblower of the Week
  • Editorial
  • Features
  • Interviews
  • Opinion

Resources

  • FAQs
  • National Whistleblower Day
  • National Whistleblower Center
  • Whistleblower Handbook
Whistleblower Network News

Whistleblower Network News is an independent online newspaper providing our readers with up-to-date information on whistleblowing. Our goal is to be the best source of information on important qui tam, anti-corruption, compliance, and whistleblower law developments. 

Submit an Article
  • ABOUT
  • ADVERTISE
  • PRIVACY POLICY
  • TERMS OF USE
  • CAREERS
  • CONTACT

Copyright © 2021, Whistleblower Network News. All Rights Reserved.

This Newspaper/Web Site is made available by the lawyer or law firm publisher for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this website, you understand that there is no attorney-client relationship between you and the Newspaper/Web Site publisher. The Newspaper/Web Site should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

No Result
View All Result
  • Government
  • Legislation
  • False Claims
  • Corporate
    • Dodd-Frank
    • IRS & Tax
    • SEC
    • Sarbanes-Oxley
  • OSHA
  • Environment
  • Opinion
  • Editorial
  • Login

Copyright © 2020, Whistleblower Network News. All Rights Reserved.

Welcome Back!

Sign In with Facebook
Sign In with Google
OR

Login to your account below

Forgotten Password?

Create New Account!

Sign Up with Facebook
Sign Up with Google
OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Go to mobile version