Handling Whistleblower Allegations Properly

Lesley Brovner & Mark Peters
July 15, 2026

Whistleblowers serve an essential role in our society by providing key information that is not publicly available and can be used to hold both the government and private industry to account. Whistleblowers help to prevent financial fraud and waste of corporate and taxpayer dollars and keep the public safe by exposing health, safety and environmental risks, including but not limited to those involving unsafe products and working conditions. 

Why How You Respond to a Whistleblower Complaint Matters

Whistleblowers present corporations with a unique opportunity to fix problems from within and prevent future financial misconduct and unsafe conditions. Responding to whistleblowers fairly and completely is essential for good corporate governance. The information provided by whistleblowers must be taken seriously and handled carefully, competently and quickly.  

Immediate Steps When You Receive a Whistleblower Allegation

After receiving a whistleblower complaint, entities need to develop a plan to investigate the allegations thoroughly and quickly.  That plan should include details of the investigative process including: 

  • Establish the authority to investigate and the scope of the authority to do so (Determining if outside investigative counsel is necessary);
  • Establish a basis for confidentiality and privilege;
  • Create a formal investigative plan (outside counsel will do this if hired);
  • Take steps to preserve the evidence (including circulating a document preservation notice);

Who Should NOT Be Involved in the Initial Response

Neither the whistleblower nor the subject of the whistleblower’s allegations should be involved in the initial investigative response by the entity.

The Legal Obligation to Avoid Retaliation

Federal, New York State and New York City government all prohibit retaliation against whistleblowers.  On the federal level both the Sarbanes-Oxley and Dodd-Frank Acts, as well as other statutes, contain whistleblower protections.  Similarly, the State and City have multiple whistleblower retaliation laws that protect whistleblowers in both the public and private sector.  As such, it is important to take (and document) steps to make sure that no retaliation occurs.

Conducting a Proper Internal Investigation

There are several steps required conduct a proper internal investigation.  These include:

  • Defining the scope of the investigation;
  • Identifying the client (e.g., full board, special committee or management);
  • Establishing a legal basis for confidentiality or privilege;
  • Conducting a preliminary inquiry (essential for refining the scope of the inquiry and identifying key information sources);
  • Reviewing prior investigations for efficiency and accuracy;
  • Collecting all relevant documents;
  • Conducting transparent and effective employee interviews;
  • Preparing a preliminary report to the Board of Committee.  The report should do two things: 
    • Explain the events and legal obligations necessitating the investigation;
    • Summarize prior investigative findings and unresolved issues;
    • Recommend scope, methodology and timeline for full investigation;
  • Communicating with stakeholders (it is important to have comprehensive strategic communications that help manage the media if there is any, inform employees of any developments before they hear about them from third parties; and maintain good will from stakeholders.  All this must be done while carefully navigating to avoid legal pitfalls that could haunt an entity down the line.);
  • Implementing corrective actions to restore trust, hold wrongdoers to account, ameliorate the harm caused by the wrongdoing, and prevent future misconduct.

When to Self-Report to Regulators

Government oversight agencies play a vital role in society and maintaining their integrity and transparency is crucial.  If you are aware of misconduct, depending on your position you may be obligated to report it and, even if you are not, may decide that it is in your, your company’s or society’s best interest to do so – thus holding the agency and its officials accountable.  However, given the many different rules governing such disclosure, you may wish to consult with an experienced attorney prior to acting.

Government agencies often reward contractors who identify potential misconduct, conduct internal investigations, and voluntarily disclose violations. Strategic disclosure can:

  • Reduce civil and criminal penalties
  • Limit False Claims Act exposure
  • Avoid or mitigate suspension and debarment
  • Prevent or weaken whistleblower lawsuits

Even when disclosure occurs after a government inquiry has begun, cooperation may still result in more favorable outcomes.

Documenting Your Entity’s Response for Legal Protection

It is important to document all of the steps you take during the whistleblower investigation.  Not only is this necessary to allow a final report and recommendation but documenting the steps taken protects the entity involved from allegations either that an insufficient investigation was undertaken or that the whistleblower was not properly protected.

Contact Peters Brovner Today!

The attorneys at the law offices of Peters Brovner LLP have decades of experience conducting complex criminal and civil investigations, including those involving whistleblowers. Before founding Peters Brovner LLP, Lesley Brovner and Mark Peters served as First Deputy Commissioner and Commissioner of New York City’s Department of Investigation (“DOI”), one of the oldest law enforcement agencies in the country. At DOI, they oversaw the Inspectors General for all New York City agencies and oversaw hundreds of investigations that resulted in criminal prosecutions and major agency reforms.

Prior to DOI, Lesley was a prosecutor for many years at the New York State Attorney General’s Office where she focused on complex, white collar investigations and Mark was chief of the public corruption unit at the Attorney General’s Office. Since founding the firm, they’ve handled a number of whistleblower investigations.

If you or someone you know is in need of a whistleblower investigation, please reach out to the lawyers at Peters Brovner LLP for a consultation.