Whistleblower Laws in the 21st Century: Greater Rewards, Heightened Risks, Increased Complexity March 20, 2014 Lewis Katz Hall Carlisle, Pennsylvania WHISTLEBLOWER LAWS IN THE 21ST CENTURY: GREATER REWARDS, HEIGHTENED RISKS, INCREASED COMPLEXITY Thursday, March 20, 2014 — 1:00 to 6:00 p.m. Apfelbaum Family Courtroom & Auditorium, Lewis Katz Hall, Carlisle, PA Simulcast to Greg Sutliff Auditorium, University Park, PA Table of Contents AGENDA ............................................................................................................................................................ 1 BIOGRAPHIES ................................................................................................................................................. 3 INTRODUCTION .............................................................................................................................................. 9 WHAT IS A WHISTLEBLOWER, by Lance Cole .................................................................................................. 9 Asadi v. G.E. Energy (USA), L.L.C., 720 F.3d 620 (5th Cir. 2013) .......................................................... 11 Bohatch v. Butler & Binion, 977 S.W.2d 543 (Tex. 1998) ...................................................................... 23 Sarbanes-Oxley Criminal Whistleblower Protection Provision (18 U.S.C.A § 1513(e)) ........................ 43 The SEC’s Corporate Cooperation Policy: A Duty to Correct or Update? .............................................. 45 PANEL ONE: WHISTLEBLOWER POLICY ISSUES .............................................................................. 87 WHAT IS IT LIKE TO BE A WHISTLEBLOWER, by Stanley M. Brand .............................................................. 89 Whistleblowing in the 21st Century .......................................................................................................... 89 WORKING WITH GOVERNMENT WHISTLEBLOWERS, by Scott H. Amey ........................................................ 93 Whistleblower Laws in the 21 Century .................................................................................................... 93 PANEL TWO: BUSINESS AND CORPORATE WHISTLEBLOWER ISSUES ............................................................ 113 PLAINTIFFS PERSPECTIVE, by Joseph E. B. “Jeb” White .............................................................................. 115 Recent Improvements to the False Claims Act: Back to the Future for the Government’s Primary Fraud-Fighting Weapon ...................................................................................................................... 115 CORPORATE/DEFENSE PERSPECTIVE, by Claudia M. Williams ................................................................... 139 Whistleblower Reporting ....................................................................................................................... 137 Ethical Conduct and Governance ........................................................................................................... 141 Procedures for the Submission of Complains or Concerns Regarding Financial Statement Disclosures, Accounting, Internal Accounting Controls, Auditing Matters or Violations of the Code of Ethics for Senior Executive and Financial Officers or Code of Business Conduct and Ethics ............................................................................................................................................ 143 Whistleblower Policy ............................................................................................................................. 145 Whistleblower Procedure ....................................................................................................................... 147 WHO SHOULD “BENEFIT” FROM SETTLEMENT OF WHISTLEBLOWER CASES?, by Katherine Pearson ........ 153 Fraud Statistics – Overview ................................................................................................................... 159 Fraud Statistics – Health and Human Services ...................................................................................... 161 Fraud Statistics – Department of Defense .............................................................................................. 163 Fraud Statistics – Other (Non-HHS, Non-DOD) ................................................................................... 165 COMMENTATOR NOTES, by David R. Hoffman ............................................................................................ 167 The Role of the Federal Government in Ensuring Quality of Care in Long-Term Care Facilities ........ 167 Medical Necessity Review: Compliance in a New Era of Accountability ............................................. 177 KEYNOTE ADDRESS ........................................................................................................................................................................... 183 THE LAW OF WHISTLEBLOWING: AN OVERVIEW & INTERNATIONAL PERSPECTIVE, by Kathleen Clark ... 183 White Paper on the Law of Whistleblowing, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2176293 ........................................................... 185 Confidentiality Norms and Government Lawyers, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1154245 ........................................................... 191 WHISTLEBLOWER LAWS IN THE 21ST CENTURY: GREATER REWARDS, HEIGHTENED RISKS, INCREASED COMPLEXITY Thursday, March 20, 2014 — 1:00 to 6:00 p.m. Apfelbaum Family Courtroom & Auditorium, Lewis Katz Hall, Carlisle, PA Simulcast to Greg Sutliff Auditorium, University Park, PA 1:00 p.m. Introduction What is a Whistleblower? Lance Cole, Professor of Law and Director, Center for Government Law and Public Policy Studies, Penn State Dickinson School of Law 1:15 to 2:15 p.m. Panel One: Whistleblower Policy Issues What Is It Like To Be a Whistleblower? Stanley M. Brand, President and Founder, Brand Law Group, Washington, D.C. and Distinguished Fellow in Law and Government, Penn State Dickinson School of Law Working with Government Whistleblowers Scott H. Amey, General Counsel, Project on Government Oversight, Washington, D.C. Commentators: Professors Lance Cole and Kathleen Clark 2:15 to 2:45 p.m. Audience Q&A (and Break) 2:45 to 3:45 p.m. Panel Two: Business and Corporate Whistleblower Issues Plaintiffs Perspective Joseph E. B. “Jeb” White, Nolan Auerbach & White, Philadelphia, Pennsylvania Corporate/Defense Perspective Claudia M. Williams, Associate General Counsel, Labor & Employment, The Hershey Company, Hershey, Pennsylvania Who Should “Benefit” from Settlement of Whistleblower Cases? Katherine Pearson, Professor of Law, Penn State Dickinson School of Law Commentator: Professor Raymond Gibney, Jr. and David R. Hoffman, Esq. 3:45 to 4:15 p.m. Audience Q&A (and Break) 4:15 to 5:15 p.m. Keynote Address (and Audience Q&A) The Law of Whistleblowing: An Overview & International Perspective Kathleen Clark, Professor of Law, Washington University in St. Louis School of Law 5:15 to 6:15 p.m. Reception 1 2 Biographies Scott H. Amey: Scott Amey serves as general counsel for the Project on Government Oversight (POGO) and directs contract oversight investigations, including reviews of federal spending on goods and services, the responsibility of top federal contractors, and conflicts-of-interest and ethics concerns that have led to questionable contract awards. Scott testifies before Congress and federal agency panels, submits public comments on proposed regulations, educates the public by working with the media, and publishes reports, alerts, and blogs on contracting and openness issues. Mr. Amey previously worked for POGO in the mid-nineties, but has been continuously with the organization since 2003. Scott left POGO in 1998 to attend law school, after which he clerked for the Honorable James A. Kenney, III, at the Court of Special Appeals of Maryland from 2001-2003. Mr. Amey received a J.D., magna cum laude, from the University of Baltimore School of Law in 2001, and a B.A. from the University of Pittsburgh in 1993. Scott is licensed to practice law in Maryland. He has appeared on CNN, NBC, CNBC, ABC, and NPR, and has been quoted in The New York Times, Washington Post, Wall Street Journal, Washington Times, and USA Today, among others, and often provides background information and leads to the media. For more information, please visit: • http://www.pogo.org/about/board-staff/staff-profiles/scott-amey.html Professor Stanley M. Brand: As the founding member of the Brand Law Group in Washington, D.C., Professor Brand has enjoyed success representing corporations, trade associations, labor unions, and individuals in major justice department, grand jury and independent counsel investigations and trial proceedings including Whitewater, HUD, the savings and loan crisis and the campaign finance task force investigations. Earlier in his career, Professor Brand served as general counsel to the U.S. House of Representatives, and was the chief legal officer responsible for representing the House, its members, officers and employees in connection with legal procedures and challenges to the conduct of their official activities. With over thirty years of experience, Professor Brand offers students a particularly sharp insight into federal 3 regulatory and legislative practice in Washington, DC. In addition to his legal work, Professor Brand serves as the Vice-President of the National Association of Professional