• AML
  • Qui Tam
  • SEC
  • CFTC
  • FCPA
  • FAQS
Subscribe
Donate
No Result
View All Result
Whistleblower Network News
The Truth at Any Cost.
Qui Tam, Compliance and Anti-Corruption News.
Whistleblower Network News
No Result
View All Result
Home FCPA Rewards

Whistleblower Attorney Explains How US FCPA Can Help Fight Corruption in Venezuela

Rachel GruppVictor ZhangbyRachel GruppandVictor Zhang
June 9, 2023
in FCPA Rewards
Reading Time: 4 mins read
Venezuela Whistleblower
Share on TwitterShare on FacebookShare on LinkedInEmail

On June 7, whistleblower attorney Michael Kohn delivered a speech at the Meridian International Center to a group of Venezuelan officials as part of the U.S. State Department’s International Visitor Leadership Program (IVLP). This IVLP initiative aims to promote transparency and accountability in Venezuelan state and local governments, as well as foster partnership between foreign officials and their American counterparts. Kohn addressed bribery and corruption in Venezuela through comparison to legislative developments in the United States, focusing specifically on the Foreign Corrupt Practices Act (FCPA).

Kohn, founding partner of the whistleblower law firm Kohn, Kohn & Colapinto LLP and President of the National Whistleblower Center has dedicated decades to advocating for whistleblowers, successfully securing numerous victories in cases against federal, state, and local governments.

To begin his talk, Kohn reflected on his extensive experience representing whistleblowers, as well as the evolving legal landscape concerning their protections. Whistleblowers play an “essential role in detecting and reporting crime,” he said, as well as “a pivotal role in identifying and reporting unlawful activities.”

Register for National Whistleblower Day

Kohn then highlighted the transnational reach of the U.S. Securities and Exchange Commission (SEC) Whistleblower Program, which covers violations of the FCPA. This U.S. law, enacted by Congress in 1977, is a viable tool for Venezuelan whistleblowers to combat corruption within their country

Kohn emphasized the importance of disseminating information about this program, stating, “getting word out that this type of program exists is key,” primarily because “what is lacking is the knowledge of the program, lines of communication to use in the United States when someone has critical information from Venezuela.”

During his presentation, Kohn zeroed in on three standout characteristics of the statute: its global applicability, the guarantee of whistleblower anonymity, and the provision of significant financial incentives as a means to motivate whistleblowing.

Global reach

First, Kohn clarified that the FCPA allows anyone, regardless of their location globally, to file a report with the SEC. “This is applicable as long as the individual involved is either an American citizen or has dual American citizenship; or if the company conducts business within America, gets money from an American entity, or is publicly traded in any form,” he elaborated.

For whistleblowers, Kohn underscored, the burden of evidence isn’t as heavy as one might presume. He pointed out that whistleblowers “don’t necessarily need to have all the evidence” such as explicit evidence of bribes being paid. Instead, even “evidence of incorrect record keeping,” which can potentially harm American stockholders’ interests, is sufficient to bring foreign companies under the purview of the FCPA. This has significant implications for the oil and gas sector in Venezuela.

On an optimistic note, Kohn indicated that while there were no whistleblower reports coming from Venezuela in 2011, the number had risen to 17 by 2021. He stressed that with an increase in tips being received, the federal government is poised to intensify its investment in such investigations.

Anonymity

Delving into the second key provision of the FCPA, Kohn highlighted the robust mechanisms that ensure the anonymity of whistleblowers. “The FCPA allows whistleblowers to remain anonymous during the proceedings,” he noted.

Expounding on the operation of the FCPA in preserving a whistleblower’s identity, Kohn elaborated, “there are attorneys in the United States ready to represent you. You provide them with the information, and they file the report on your behalf, essentially keeping your identity undisclosed.” This approach permits whistleblowers to relay any quantity of information to the federal government, depending on their comfort and discretion.

“The federal government strictly adheres to these confidentiality protocols,” Kohn emphasized. “They ensure the opposing party doesn’t gain access to any information regarding the whistleblower’s identity.” He also confirmed the government’s active collaboration with whistleblowers and their attorneys to maintain absolute anonymity, noting that he has never seen a whistleblower’s identity compromised by the U.S.

Financial incentive

The third feature that Kohn highlighted of the FCPA was its financial incentive to any individual who discloses illegal activities to the SEC, allowing them to earn between 10 to 30 percent of the resulting penalties.

“The reward is more than just the size of the bribe, it also covers what the bribe is for,” explained Kohn.

To illustrate, Kohn proposed a scenario where a bribe payment amounted to five million dollars but was intended to secure a contract of the same value. In this case, the total penalty would escalate to ten million dollars, from which the whistleblower can potentially receive up to 30 percent.

Kohn also drew attention to recent SEC data, highlighting the United States had already accrued penalties of $20 billion by 2011—a staggering figure from over a decade ago. Kohn lauded this as indicative of “an exceedingly successful program.”

To conclude his address, Kohn cited a report from the University of Chicago’s business school. The study revealed that financial incentives substantially encourage whistleblowers to come forward and do not result in any adverse consequences. Drawing from his experience and long-term observations, Kohn firmly stated that “enhanced whistleblower protection is the only solution that works.”

At the end of the conference participants expressed gratitude to Kohn and his work protecting whistleblowers. In fact, one Venezuelan legislator told Kohn that he had “given her ideas for new laws” and “helped her see what is possible in her country.”

Previous Post

False Claims Act Whistleblower Exposes Alleged Stark Law Violations

Next Post

New Book on Whistleblowing an “Essential Resource for Potential Whistleblowers”

Rachel Grupp

Rachel Grupp

Rachel Grupp is a Public Interest Law Intern at Kohn, Kohn and Colapinto LLP. She is a rising sophomore at Northeastern University where she is majoring in Law and Public Policy. Rachel has worked with various human rights advocacy organizations in DC and Virginia and spent her last year studying in London.

Victor Zhang

Victor Zhang

Victor Zhang serves as a Public Interest Law Intern at Kohn, Kohn & Colapinto LLP. Currently a rising junior at the University of Southern California, he is pursuing a dual major in Political Science and Law, History, and Culture. Victor participates on USC's competitive moot court team and serves as an Associate Editor for the undergraduate law review, the Trojan Review.

Next Post
Rules for Whistleblowers

New Book on Whistleblowing an "Essential Resource for Potential Whistleblowers"

Receive Daily Alerts

Subscribe to receive daily breaking news and legislative developments sent to your inbox.

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

Most Popular

Advocates Detail Need for SEC Whistleblower Reform

Raytheon Whistleblower Receives $1.5 Million for Alleging Cybersecurity Non-Compliance

Ruling Striking Down Trump Order Targeting Law Firm Seen as Crucial for Whistleblowers

MJH Healthcare Settles Whistleblower Allegations of Postal Rate Fraud for $2 Million

Poll Shows Overwhelming Support for Stronger Whistleblower Laws in Australia, Mirroring Polling in US

Four Whistleblowers Receive $1.3 Million for Alleging Genetic Testing Fraud Scheme

Whistleblower Poll

Whistleblower Poll
Whistleblower Poll

Exclusive Marist Poll: Overwhelming Public Support Among Likely Voters For Increased Whistleblower Protections

byGeoff Schweller
October 6, 2020

ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

STAY INFORMED.
Subscribe to receive breaking whistleblower updates.

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

About Us

  • About
  • Contact Us
  • Donate
  • Careers

Subscribe

  • Daily Mail
  • Follow us on Twitter
  • YouTube Channel

Contribute

  • Letter to the Editor
  • Submission Guidelines
  • Reprint Guidelines

Your Experience

  • Accessibility Statement
  • Privacy Policy
  • Terms of Use

Help

  • Rules for Whistleblowers
  • Frequently Asked Questions
  • Advertise
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

Copyright © 2025, Whistleblower Network News. All Rights Reserved.

This Newspaper/Web Site is made available by the 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.

Become a Whistleblower Network News Subscriber

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Subscribe to WNN

Retrieve your password

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

Subscribe to WNN
RSVP to National Whistleblower Day 2025! July 30, 2025 on Capitol Hill
RSVP NOW

Add New Playlist

No Result
View All Result
  • Exclusives
  • Government
    • False Claims-Qui Tam
    • Federal Employees
    • Intelligence
  • Corporate
    • CFTC & Commodities
    • Dodd-Frank
    • IRS & Tax
    • SEC & Securities
  • Features
  • Legislation
  • International
    • Foreign Corruption
  • Rewards
  • Whistleblower of the Week
  • Environment & Climate
  • Opinion
  • Editorial
  • Employment
    • Sarbanes-Oxley Whistleblowers
    • Retaliation
    • OSHA
  • Make National Whistleblower Day Permanent
  • Media
    • Podcasts
    • Videos
    • Webinars
    • National Whistleblower Day
  • Whistleblower Poll
  • Whistleblower Resources
    • Frequently Asked Questions
    • Resources for Locating An Attorney
    • The New Whistleblowers Handbook

Copyright © 2024, Whistleblower Network News. All Rights Reserved.

Go to mobile version