History Hour: Celebrating National Whistleblower Appreciation Day
In honor of National Whistleblower Appreciation Day, it’s important to take a look at the extensive history that whistleblowing has within the United States, and the implications that this courageous and critical role will have for bad actors.
In 1777, naval officers Samuel Shaw and Richard Marven reported their commanding officer, Commodore Esek Hopkins for torturing British prisoners of war. Hopkins retaliated against the two by dismissing them from the Navy and filed a criminal libel suit against them. They were arrested and awaiting their trial when Congress ultimately intervened and unanimously enacted the Whistleblower Protection Act in 1778. Congress authorized a financial reward for the two men and ordered that Hopkins be fired. Shaw and Marven eventually won the lawsuit.
In 1961, when the American Civil War broke out, it was evident that fraud was rampant in the country, both on the Union and Confederate sides. Contractors knowingly sold faulty rifles, unfit horses, and rotten food to soldiers. To address the issue, Congress passed the False Claims Act, informally known as the Lincoln Law, on 2 March, 1863. It included a qui tam provision, which allowed citizens to sue others on behalf of the government, thereby earning a fraction of the damages. Additionally, the False Claims Act provides protection from employer retaliation and provides relief to any whistleblowers.
Since then, whistleblowers have been active across the country, from Frank Serpico calling out NYPD corruption in the 60s and 70s, to Edward Snowden leaking information about the NSA’s activity regarding data privacy and protection in 2013. Snowden’s actions in particular spurred Congressional action that led to National Whistleblower Appreciation Day.
In more recent news, Donald Trump, the official candidate for the Republican Party, was impeached while in office, with the proceedings stemming from a whistleblower’s actions. The whistleblower complained that Trump used “the power of his office to solicit interference from a foreign country in the US 2020 election”. Without this complaint from a whistleblower in the intelligence community, it would have been nearly impossible to challenge the conduct of one of the most powerful heads of state.
On July 30th, 2015, National Whistleblower Appreciation Day was born to honor the day, 30 July, 1778, when Congress passed the Whistleblower Protection Act. Each year since 2013, both the United States Senate and the House of Representatives pass resolutions that designate 30 July as National Whistleblower Appreciation Day. In fact, in 2021, over 10,000 people attended the virtual celebration, which spanned over three days. Whistleblowing is a career-limiting act, especially in the federal space, so it’s important to acknowledge and appreciate the sacrifices they make to put a spotlight on bad actors.
In the international corporate world, whistleblowing is a way to hold companies accountable for possible FCPA violations. The United States Securities and Exchange Commission, and the United States Department of Justice have launched programs to encourage whistleblower activity. Beginning in 2012, the SEC has provided whistleblowers with the SEC Whistleblower Program, and since its launch, the program has awarded hundreds of millions of dollars in whistleblower awards. In fact, on 5 May 2023, the SEC issued the largest whistleblower award to date, $279 million, over Ericsson’s violation of the FCPA by bribing government officials and falsifying company records.
On 22 April, 2024, the DOJ announced a pilot program designed for individuals to disclose wrongdoing, allowing the government to investigate, identify, and prosecute the culpable individuals responsible for corporate misconduct.
The role that whistleblowers play will continue to change the compliance landscape. With more governments and enforcement agencies recognizing the importance of whistleblower protections, the hope is that, as time passes, more and more individuals will feel empowered to speak up against misconduct and hold corrupt leaders accountable – furthering the goal of international transparency, cooperation, and good governance.
J.D. Candidate, The George Washington University Law School, Class of 2026