IRS Awards Man $104 Million in Record Whistleblower Payout

The Internal Revenue Service (IRS) has rewarded a former banker with $104 million in what is being reported as the biggest whistleblower case ever, according to the Los Angeles Times. Bradley Birkenfeld confessed to assisting many Americans evade taxes.

Birkenfeld worked for the giant Swiss bank UBS, during which time he admitted to giving clients credit cards to access hidden cash in accounts untaxed by the IRS. Another tactic used was converting clients’ money into diamonds, which were then smuggled into the US.

“The comprehensive information provided by the whistleblower was exceptional in both its breadth and depth,” said the IRS in a released statement.

Birkenfeld has been in jail since 2010 after he pleaded guilty to conspiracy in a related case. His sentence was reduced for good behavior and he was released last month.

“The IRS today sent 104 million messages to whistleblowers around the world—there is now a safe and secure way to report tax fraud and that is the IRS is now paying awards,” said Stephen Kohn, Birkenfeld’s attorney. “The IRS also sent 104 million messages to banks around the world—stop enabling tax cheats or you will get caught.”

Please contact our firm for a free consultation if you have any questions about whistleblower protection.

Kesluk, Silverstein & Jacob—Los Angeles whistleblower protection attorneys



One Response to IRS Awards Man $104 Million in Record Whistleblower Payout

  1. This is a great example of some staggering financial benefits to reporting dangerous or illegal activity. While many people may not have knowledge of a scheme this size, they should still know that this case demonstrates a whistleblower cannot be punished for following the law, refusing to break the law or reporting illegal or dangerous activity. Although the industry may be different, you cannot be punished for following the law, refusing to break the law or reporting illegal or dangerous activity. If you notice your employer engaging in illegal activity or putting workers or the public at risk, it is your duty to report it to the authorities.