Whistle Blower

A whistle blower is a person who tries to expose wrong doing inside an organization either to the public or an authority figure. Whistle blowers disclose information regarding misconduct think may be against public welfare or against the law. Whistle-blowing can be internal or external. Internal whistle blowers are typically employees who are more satisfied with their jobs, and employees with longer tenure are somewhat more likely to say that they have reported observed misconduct. External whistleblowers are typically individuals driven by some internal resource who is frustrated being unable to successfully overturn misconduct by going through the proper internal channels and have found an outside resource to help champion their cause. (Whistle Blowing | Ethical Systems, 2014)

Recently, Keith Edwards was awarded nearly $64 million for providing tips that JP Morgan Chase & Co defrauded the government into insuring flawed home loans. Edwards originally sued JP Morgan Chase under the federal False Claims Act. The False Claims Act lets individuals sue government contractors and suppliers for defrauding taxpayers. The U.S. Department of Justice also joined the lawsuit as a plaintiff. The suit claimed that JP Morgan Chase pushed defective loans onto the Federal Housing Administration and the Department of Veterans Affairs for mortgages that did not qualify to be insured by these departments. Many of these loans resulted in foreclosures, causing the government to foot the bill for millions of dollars in losses. For its misconduct, JP Morgan Chase agreed to a settlement payment to the government of $614 and also agreed to investigate and improve its oversight processes. (Stempel, 2014)

JP Morgan’s actions certainly contributed to the decline of the crash of the housing and anyone with the courage to point out such corruption should be commended. If Edward had not pointed out the issue it could still be going on today and the financial repercussions could be...