Retaliation After Reporting Fraud

You Reported Fraud. They Turned on You. Now What?

At Horn Wright, LLP, our employment law attorneys assist individuals who spoke up about corporate or financial misconduct, only to face unexpected reprisals afterwards. You may have discovered billing fraud, embezzlement, or improper use of funds and then experienced demotion, exclusion from projects, or termination. Those actions may be emotional, financial, and legal wounds you never anticipated after doing the right thing.

You deserve fairness and protection, not punishment. New York law explicitly prohibits retaliation for reporting fraud. Whether you reported internally or externally, your actions may qualify under state or federal whistleblower statutes.

We help you understand your rights, target the appropriate legal statutes, and pursue accountability, for your lost pay, opportunities, or emotional peace.

What Counts as Fraud for Whistleblower Protection in New York

Under New York Labor Law § 740, reporting reasonable suspicions of fraud—such as billing fraud, misuse of funds, consumer abuse, or deceptive accounting—qualifies as protected activity. The misdeed does not need to be confirmed to trigger protection; belief must only be reasonable and made in good faith.

At the federal level, whistleblowers who expose violations of the False Claims Act or similar statutes involving healthcare fraud or government contracts receive protection. Both state and federal statutes may apply when misconduct affects public or private funds.

Public-sector employees are protected under Civil Service Law § 75‑b when they report agency or municipal fraud. If the fraud touches patient harm, healthcare professionals may also gain coverage under Labor Law § 741, allowing fast reporting when safety is at risk.

Typical Employer Reactions, and How to Respond

Employers often respond to allegations of fraud with resistance, investigation, or retaliation. That can take the form of undermining performance reviews, shifting roles, or initiated disciplinary action after your report. Such reactions may hide retaliatory intent behind procedural language or “business restructuring.”

Some employers will claim that the timing is coincidental or that the conduct stemmed from job performance, but detailed documentation often dispels that claim. If your performance was positive before the report and suddenly worsened, timing alone can signal retaliation.

It’s critical to document everything. Keep emails, notes, performance evaluations, and precise dates. If any coworkers witnessed the reaction, or your exclusion, that testimony becomes powerful evidence.

How to Prove That Retaliation Followed Your Report

To prevail under New York Labor Law or similar statutes, you must show four elements: you made a protected report of suspected fraud; your employer knew about it; you suffered adverse action (like loss of job or demotion); and that retaliation was not caused by performance issues. Causation can often be inferred by the near-immediate timing.

Federal whistleblower laws, including those related to the False Claims Act, use a similar framework, requiring proof that the adverse action was connected to your report. If government contracts or funding were implicated, your claim strengthens under both state and federal law.

You need credible evidence: a sharp timeline, internal emails referring to your report, performance evaluations before and after, and HR statements. That foundation turns observation into proof and makes your case legally compelling.

Government Fraud vs. Internal Company Fraud Claims

When fraud involves government funds, such as Medicaid billing or grants, federal statutes like the False Claims Act or OSHA protections may apply. In those cases, your claim may involve federal filing requirements and penalties that extend beyond New York law.

Internal fraud, such as misallocating corporate funds, employee theft, or deceptive accounting, also qualifies for protection under NYLL § 740, regardless of whether any public harm occurred. Internal reporting within the company is sufficient if your belief was reasonable.

Public employees who report municipal misappropriation are protected by Civil Service Law § 75‑b, which offers administrative and civil penalty remedies. That law safeguards government punishments for exposure of misused resources, and allows whistleblowers to pursue extensive recovery.

Building a Case Around Financial Misconduct Reporting

• Documentation is key: save any email, memo, or written correspondence related to your report. The clearer the trail, the stronger your case.
• Observe any shifts in treatment: detail before-and-after comparison, such as change in workload, sudden performance feedback, or exclusion, linked to the report date.
• Obtain witness corroboration: if someone overheard the retaliation discussion or saw you excluded, get their statement. Multiple sources make the narrative stronger.

In addition, financial records, billing ledgers, payment logs, or audit trails, can corroborate your suspicion. When your employer cannot justify retaliation with performance history, patterns and witnesses build a powerful argument.

New York vs. Vermont: New York Protects Reports of Internal Misconduct Without Needing to Show Public Harm

New York law provides protection for whistleblowers raising internal misconduct, even if no public funds or agencies were involved. That means internal corporate fraud qualifies.

By contrast, Vermont and similar states often require evidence of public policy violation, or that public harm occurred. Employees in those states may have fewer options unless the fraud touches a government program or environmental law.

This broader standard in New York encourages employees to report unethical or illegal behavior without needing to demonstrate systemic public harm. It allows whistleblowers to act internally while still gaining legal protection.

Horn Wright, LLP, Will Defend You for Doing the Right Thing

You saw the wrongdoing and reported it. That alone demonstrates courage. Now it’s time to enforce your legal protections. At Horn Wright, LLP, our employment law attorneys help you identify the right statutes, build compelling cases, and demand full accountability from employers and decision-makers.

We help you chart strategy, from gathering evidence to filing paperwork and negotiating or litigating. You’re eligible for remedies including back pay, reinstatement, emotional relief, and policy reform. Retaliation for exposing fraud is not just unfair, it’s illegal.

Work with a firm recognized for defending New York whistleblowers and enforcing liability. You did the right thing. Now let us help you enforce that truth.