Whistleblower lawsuits are widespread and especially problematic
in highly regulated industries such as financial services. Congress
and the courts have consistently expanded the scope of protected
activity and made retaliation claims more difficult to defend.
Making things even more complicated, the Department of Justice has
looked towards whistleblowers as a compliance tool, offering
employees who report illegal activity the opportunity to share in
the financial recovery even if they were not themselves harmed.
The Financial Institutions Reform, Recovery, and Enforcement Act
(FIRREA) has increasingly been used as a weapon in the
government's arsenal. Although it had been rarely used, it was
revived in 2010 as part of the Obama Administration's efforts
to prevent mortgage fraud. FIRREA actions, either alone or in
conjunction with other claims such as claims under the False Claims
Act, have been used to prosecute financial institutions for
misconduct. Like other
