Punishing Whistleblowers Discourages National and International Anti-Corruption Efforts

(Washington, D.C.) – Today, the Government Accountability Project (GAP), National Whistleblowers Center (NWC), and the Project on Government Oversight (POGO) sent a letter to U.S. Attorney General Eric Holder, urging him to review the case of Bradley Birkenfeld, the international banker who blew the whistle on secret offshore accounts at UBS Bank in Switzerland. On August 21, Mr. Birkenfeld was sentenced to three years and four months in prison for his actions, despite the fact that UBS’s tax fraud scheme never would have been discovered without Mr. Birkenfeld’s disclosure.

The letter calls on the Department of Justice to reconsider Mr. Birkenfeld’s case and “take action to prevent one of the worst setbacks in international law enforcement history.” A copy of the letter can be found here:

The letter states in part:

As estimated by the U.S. Senate Subcommittee on Permanent Investigations, $5-7 trillion dollars in U.S. ’taxpayer’ assets are hidden in offshore accounts. Annually, the treasury loses over $100 billion in revenue due to these illegal accounts. These accounts provide sanctuary for the worst criminal elements in our society. They are safe havens for people who profit from selling heroin in our inner cities or who bribe our elected leaders. As recognized under international treaties signed by the United States, bank secrecy is the handmaiden of corruption. 

Denying Mr. Birkenfeld whistleblower status, and sending him off to a long prison term, radically undermines the ability of the U.S. government to detect, prosecute and prevent illegal off-shore banking practices. Without exaggeration, on the day Mr. Birkenfeld enters a federal penitentiary, every criminal using offshore secret banks to hide their ill-gotten gain will celebrate. The Department of Justice will, unintentionally, be party to a well-publicized worldwide event that will send a chill down the spine of any international banker who, like Mr. Birkenfeld, feels guilty about the practices they participate in and wants to help stop these insidious practices that undermine the rule of law.

Will the Department of Justice imprison the international banker who had the courage to voluntarily step forward and blow the whistle on one of the world’s most powerful corporations? Or will the Department of Justice use the Bradley Birkenfeld case as an historic opportunity to promote whistleblowing in the fight against corrupt international banks?

In urging the Attorney General to conduct this review, representatives from the organization stated the following:

Jesselyn Radack, GAP Homeland Security Director: “Brad Birkenfeld gave the Justice Department its entire historic case against UBS on a silver platter. It thanked him by letting all the Swiss bad actors go free and prosecuting the whistleblower – an American.

Lindsey M. Williams, NWC Advocacy Director: “We are urging Attorney General Holder to conduct an independent review because this case is about more than just Mr. Birkenfeld – it is about every whistleblower who is considering coming forward to report tax fraud in offshore accounts.”

Danielle Brian, POGO Executive Director: “This case sends a clear message to those considering reporting wrongdoing to DOJ: don’t bother.”

Government Accountability Project

The Government Accountability Project is the nation’s leading whistleblower protection organization. Through litigating whistleblower cases, publicizing concerns and developing legal reforms, GAP’s mission is to protect the public interest by promoting government and corporate accountability. Founded in 1977, GAP is a non-profit, non-partisan advocacy organization based in Washington, D.C.