Beruflich Dokumente
Kultur Dokumente
1 | Page
Introduction
Whistle blowing is a legal term given to the activity under which disclosure of any mal practices
in any organization. A whistleblower can be defined as the one who takes up the initiative to alert
the organization, public or the responsible authority about any scandal, ill practice or evidence of
corruption about any individual or group of persons (Johnson, 2003). This paper aims at
Whistleblower characteristics
This paper would discuss whistle blowing case in JP Morgan in which company was charged for
overstating the quality of mortgage to its investors; this case caused biggest settlement between
US government and the organization costing Dollar 13 billion. Alayne Fleischmann is the whistle
blower of the company who was paid $63.9 million. Different issues for which JP Morgan was
charged include submission of thousands of mortgage insurance that do not qualify for
Whistleblowing issue
According to whistle blowing case there were number of criminal mortgage frauds that lead to
financial crisis. According to whistle blower, when she reviewed loans she found that 40 percent
of income was overstated in loan statements. According to the whistle blower she took the
complaint firstly to the managing director, providing recommendations for not selling high risk
loans and low risk securities in the market. Whistleblower was justified in proving her position in
the claim made as she proved it using various reports, evidences and analysis. In the year 2008
2 | Page
was removed from the company and from 2012 she was working with organization which was
Whistleblower analysis
Whistle blower was justified in presenting her report against companies action, she provided
documents, reports as proof of fraud committed; according to law whistle blower can get portion
from False Claims Act settlements. She also informed regarding banks transactions in sourced
mortgage-backed bonds, which took place before crisis. She also tried to blow whistle internally
by informing management but this went into vain. She also discuss several problems encountered
by her as whistleblower, she lost her job as securities lawyer (Stempel, 2014).
remedy, employment protection. According to this act publicly traded companies need to
establish internal independent audit committee; policy must be formed by stating procedure to
file internal whistle blowing complaint within the organization. It also aims at protecting the
identity of whistle blower to give freedom of expression and reduce uncertainty fear. Under this
act, a whistle blower can recover lost wages, benefits, reinstatement and special damage caused.
Conclusion
Above analysis helped in understanding that whistle blowing is a ethical step taken to speak
against a wrong scenario but several complexities are associated with it. However, there is need
for making internally strong scenario, strict whistle blowing policies within organization to
3 | Page
Bibliography
Hartman, L. P., D. R., & Radin, T. J. (2009). Translating Corporate Culture around the World:A
cross-cultural analysis of whistleblowing as anexample of how to say and do the right
thing. notizie di POLITEIA, 255-272.
Keenan, J. P. (2000). Blowing the Whistle on Less Serious Forms of Fraud: A Study of
Executives and Managers. Employee Responsibilities and Rights Journal, 12(4), 199-217.
McCoy, K. (2014, October 18). Ex-JPMorgan lawyer tells tale of wrongdoing. Retrieved April
25, 2015, from USA today :
http://www.usatoday.com/story/money/business/2014/11/08/alayne-fleischmann-
jpmorgan-whistleblower/18652819/
Smith, Y. (2014, November 8). Matt Taibbi and Alayne Fleischmann Discuss JP Morgan
Mortgage Fraud, Eric Holder CoverUp on Democracy Now. Retrieved April 25, 2015,
from nakedcapitalism.com: http://www.nakedcapitalism.com/2014/11/matt-taibbi-alayne-
fleischmann-discuss-jp-morgan-mortgage-fraud-eric-holder-coverup-democracy-
now.html
Stempel, J. (2014, March 7). JPMorgan whistleblower gets $63.9 million in mortgage fraud deal.
Retrieved April 25, 2015, from reuters.com:
http://www.reuters.com/article/2014/03/07/us-jpmorgan-whistleblower-
idUSBREA261HM20140307
4 | Page