Why is there so much corporate fraud?

Why is there so much corporate fraud?

Corporate employees know about all corporate fraud before it happens.  Some employees perform the fraud; others witness it. There are whistleblower programs at every major company asking employees to report fraud.  Why doesn’t this stop the fraud?  Well, the would-be whistleblower is Charlie Brown, and the company’s compliance teams are Lucy.  The companies (all of them) blackball whistleblowers.  I cannot find one example of a company intentionally hiring a whistleblower.  I have looked diligently.  I have sent e-mails and LinkedIn mails to hundreds of people.  My posts and articles have reached thousands of people.  Not one has identified a known whistleblower being intentionally hired.  The most I have gotten is vague statements like, “We might have hired a whistleblower, but its confidential.”  

What isn’t confidential is the thousands of whistleblowers who have been blackballed.  It almost doesn’t matter how valid the cause.  Peter Buxtun blew the whistle on an experiment in Alabama that intentionally failed to treat syphilis in African American men.  His official protests were ignored from 1966 to 1972. The practice was finally stopped after he leaked it to the press.  Time person of the year Sherron Watkins was blackballed after blowing the whistle on Enron!   Bradley Birkenfeld helped the IRS recover billions; he was blackballed and went to jail for his troubles.  Harry Markopolos blew the whistle on Madoff years before Madoff's fraud cost his investors billions.  Carmen Segarra, Michael Woodford…  There are thousands of examples, and nothing has changed.  Sure, there are compliance programs, but they don’t and can’t impact the most important thing: will an employer hire a known whistleblower.  It is actually kind of shocking given the history of brave whistleblowers stopping grave injustices at huge personal cost that not one "honest" company will hire the Peter Buxtuns and Sherron Watkins of the world - it never happens.  So, is anyone confused when Charlie Brown winds up flat on his back on the ground again? Is anyone surprised when employees don't sign up for the Charlie Brown treatment?     

Muhammad Siddique

Chief Executive M.S. Consultants.

5 年

It is world over practice and problems and big CA, s facilities them.

Christine R.

Rehabilitation Management/Consultant/Entrepreneur /Occupational therapist /Certified Hand Therapist

5 年

Because DOJ..has hired the Department of Jesters instead if lawyers to prosecute healthcare fraud.

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