FIRREA Whistleblowers

The Financial Institutions Anti-Fraud Enforcement Act (FIAFEA)

The Financial Institutions Anti-Fraud Enforcement Act (FIAFEA) of 1990 was enacted shortly after FIRREA. FIAFEA allows a private individual to file a declaration with the U.S. Attorney General that involves a violation of any of the predicate offenses listed in 12 U.S.C. § 1833a(c)(1)-(3), including:

• Receiving commissions or gifts by an officer, director, employee, agent, or attorney of a financial institution for procuring loans, 18 U.S.C. § 215;
  
  
• Embezzlement, theft or willful misapplication of funds by an officer, director, agent or employee of a bank, 18 U.S.C. § 656;
  
  
• Embezzlement, theft or willful misapplication of funds by an officer, director, agent or employee of a lending, credit or insurance institution; 18 U.S.C. § 657;
  
  
• Issuing or assigning a bank note without authorization, or making false entries in a book, report or statement of a bank by an officer, director, agent or employee, 18 U.S.C. § 1005;
  
  
• Issuing or assigning a debt instrument without authorization, or making false entries in a book, report or statement of a federal credit institution by an officer, director, agent or employee, 18 U.S.C. § 1006;
  
  
• Knowingly making or inviting reliance on a false, forged, or counterfeit statement or document for the purpose of influencing the action of the Federal Deposit Insurance Corporation, 18 U.S.C. § 1007;
  
  
• Knowingly making a false statement or report, or willfully overvaluing land, property or security, for the purpose of influencing the action of the Federal Housing Administration or specific agencies within the Department of Agriculture, 18 U.S.C. § 1014;
  
  
• Defrauding a financial institution or obtaining funds from a financial institution through false or fraudulent pretenses, representations, or promises, 18 U.S.C. § 1344;
  
  
• Making false, fictious or fraudulent claims to any person or officer in the civil or military service of the United States, or to any related agency or department, 18 U.S.C. § 287;
  
  
• Falsifying or concealing a material fact through trickery or deception; or making a materially false or fraudulent statement or representation; or making or using a false writing or document in any matter within the jurisdiction of the United States government, 18 U.S.C. § 1001;
  
  
• Concealing an asset or property from certain government agencies while acting in the capacity as conservator, receiver or liquidating agent, 18 U.S.C. § 1032;
  
  
• Devising a scheme to defraud or obtain money or property by fraudulent means through the United States Postal Service, 18 U.S.C. § 1341;
  
  
• Devising a scheme to defraud or obtain money or property by fraudulent means through interstate transmission of wire, radio, or television communication, 18 U.S.C. § 1343
  
  
• Making a false statement or overvaluing a security to obtain a loan; to influence the action of the Small Business Administration; or obtain money or property under Chapter 14A of Title 15 of the United States Code, 15 U.S.C. § 645(a)

An eligible FIAFEA whistleblower can receive a reward of 20% to 30% of any recovery up to the first $1 million recovered; 10% to 20% of the next $4 million; and 5% to 10% of the next $5 million, up to a maximum of $1.6 million.