Philadelphia Whistleblower Lawyers : Vanguard Accused of $1 Billion Tax Fraud

The city of Philadelphia is home to one of the most active jurisdictions for Qui Tam lawsuits. A Quit Tam suit is a type of lawsuit brought by a third party whistleblower on behalf of the government. In the United States, under the False Claims Act, 31 U.S.C. § 3729 et seq., “an individual with knowledge past or present of fraud committed against the federal government may bring suit its behalf”. If their case recovers funds for the government, a whistleblower can be awarded substantial sums of money as a percentage of the settlement.

Pennsylvania based investment company Vanguard Group, which manages nearly $3 trillion in assets, is currently in the midst of a qui tam suit brought by its former employee David Danon, who alleges that the company illegally manipulated transfer pricing to keep costs artificially low. Danon’s suit states that after expressing serious concerns about the transfer pricing arrangements, the company brushed aside his concerns and eventually fired him.

Vanguard filed a motion to dismiss the case, arguing that as a former tax attorney for the company, Danon cannot file suit against them. Furthermore, Vanguard alleges that Danon improperly used privilege and confidential information to bring the suit.

The lead counsel in Danon’s suit, Stephen Sorenson of Thomas, Alexander & Forrester LLP remains optimistic about the suit, stating in an interview with Forbes Magazine that he is hoping for a hearing by early next year. The suit alleges a violation of federal and state tax laws, costing taxpayers more than $1 billion.

Philadelphia qui tam lawyers at Sidkoff, Pincus and Green represent third party whistleblowers throughout Philadelphia and New Jersey.  If you or someone you know needs a whistleblower lawyer in Philadelphia call Sidkoff, Pincus and Green at 215-574-0600, or complete and online contact form to schedule a consultation today.