Whistleblowing and corruption control: The GE case

Abstract

This paper focuses on the use of the amended False Claims Act to counter defense contract fraud against the U.S. government. The case deals with the scheme of a former Israeli Air Force General and a GE marketing specialist to divert funds, provided by the U.S. to Israel, for unauthorized and private usage, and with the actions of the GE whistleblower, Chester L. Walsh, in bringing suit against GE under FCA. The paper analyzes poses the ethical problem of providing an economic bounty for the whistleblower even while acknowledging the effectiveness of this practice in countering fraud.