T.C. M em o . 2 0 1 8 -1 1 8

UNITED STATES TAX COURT

W HISTLEBLOW ER 7 2 0 8 -1 7 W , Pet i ti o n er v . COM M ISSIONER OF INTERNAL REVENUE, Res po n d en t

Do ck etNo . 7 2 0 8-1 7W
. Fi l edJ u l y 3 1, 2 0 18
.
Seal ed , fo r p et i t i o n er. El i zab et h M ou rg es , Kev i n Gi l l i n , an d Nan cy Gi l m o re, fo r res po n d en t .

M EM ORANDUM OPINION LEYDEN, Sp eci al Tri al J u d g e: Pet i t i o ner b ro u g h tth i s act i o n p u rs u an tt o
s ect i on 7 6 2 3 (b )(4 ) 1 fo r t h e Co u rtt o rev i ew th e In tern al Rev en u e Serv i ce (IRS)

1 Un l es s o t h erwi s e i nd i cat ed , al l s ect i o n referen ces are t o th e In t ern al Rev enu e Co de, as am en d ed , i n effect atal l rel ev an tt i m es , an dal l Ru l e referen ces are t o t he Tax Co urtRu l es o f Pract i ce an dPro cedure. Th e Co u rtu s es m al e-g en d er (co n ti n u ed ...)- 2
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[* 2 ] Wh i s t l eb l o wer Offi ce’ s (Wh i s tl eb l ower Offi ce) d en i al o f h i s cl ai m s fo r a wh i st l eb l o wer award . Th i s m at t er i s b efo re t h e Co u rto n p et i t i on er’ s m o t i on t o p ro ceed an o nym o u sl y

(m o t i o n ), fi l edM arch 3 0 , 2 0 1 7 , p u rs uan tt o Ru l e 3 4 5 (a). Res po n d en to b

ject s t o p et i t io n er’ s m o t i o n . Fo r t h e reas o n s s t at edh erei n , p et i t i o n er h as n o ts at is fi ed hi s b u rd en o f s h o wi n g th atth e ri s k o f h arm t o h i m
o u t wei gh s t h e p ub l ic’ s ri g h tt o kn o w wh o i s u s i n g t h e Co u rt . Th e Co u rtwi l l d en y p et i t i o n er’ s m o t io n . 2 Back gro u n d I. Pet i t i o ner’ s Careers Pet i t i o ner recei veda m as t er’ s d eg ree fo r wh i ch h e wro t e a t h es i s o n a fi nan ci al trad i ng s t rat eg y (t rad in g s t rat eg y ) h e d ev el o p ed . Aft er g raduat i ng i n 1 9 9 1 , p et i t i o n er wo rk edas a fl o o r t rad er o n W al l St reet fo r ab o u ts i x m o n t h s . Fo r t h e n ex tfi v e y ears p et i t io ner t rad ed rem o t el y fro m a h o m e o ffi ce, b u t h e ret u rn ed

1 (...co n t in u ed ) p ers o n al p ro n o u n s t o refer t o p et i t i o n er fo r co n ven i en ce an d wi th o u ti n t en t i o n t o i d en t i fy p et i ti o n er’ s act u al gen d er. 2 Nev ert h el es s, th e Co u rth as ch an g edth e cap t i o n o f t h e cas e t o acco rd p et i t i o n er an o n ym i ty

i n cas e h e wi s h es t o ap p eal th e Co u rt ’ s d en ial o f t h e m o t i o n . See W h is t l eb l o wer 1 4 3 7 7 -1 6 W v . Co m m i s s i o n er, 1 4 8 T.C. , (s l ip o p . at3 n .2 ) (J u n e 2 8 , 2 01 7 ). If wi t h in 3 0 d ay s o f t h e Co u rt ’ s i s s u in g i t s o rd er d en y i n g th e m o ti o n p et i t io n er d oes n o tfi le wi t h th e Cl erko f t h e Co u rta n o t i ce o f ap p eal , th e Co u rtwi ll ch an g e th e cap t io n b ackt o refl ect t h e p et i t io n as fi l ed
.- 3
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[* 3 ] t o fl o o r t rad i n g i n 1 9 9 7 . So m et i m e i n 2 00 0 p et i t i o n er b ecam e a d es ktrad er at
an i n v es t m en tb an k i n g , s ecu ri t i es , an di n v es t m en tm an ag em en t fi rm . Acco rd i n g t o p et i t i o n er, h e was h i redb ecau s e t h e s en io r an dm an ag i ng d i rect o rs o f th e fi rm
were v ery i m p res s edwi t h an ex ecu t iv e s u m m ary h e h adwri t ten ab o u th i s trad i n g
s t rat eg y . Du ri n g 2 0 0 0 Am eri can St o ckEx ch an g e (AM EX) b eg an an i nv es t i g at i o n
an d i d en t i fi edp et i t i o n er as a wi t n es s i n t hati n v es ti g at i o n . Sh o rt ly aft er Sep t em

b er 1 1 , 2 0 0 1 , p et i t i o n er was l ai d o ff fro m h i s jo b as a d es ktrad er. Aft er b ei n g l ai do ff, p et i t i o n er d eci d edt o s p en dt im e p erfect in g h is t rad i n g s t rat eg y t o en g ag e p ri v at e weal t h cl i en ts . In 2 0 0 4 p et i t i o n er b ecam e a s ub jecto f, rat h er t h ana wi t n es s i n , th e AM EX i n v es t i g at i o n an d was ch arg ed wi t h a fi n e an d p en al t i es fo r v i o l at in g ex ch an g e
ru l es . Pet i t i on er, as a reg i s tered rep res en t at i v e, was req u i redt o d is cl os e t h ath e
was t h e s ub

jecto f t h i s i n ves t i g at i o n each t im e h e fi l eda Fo rm U4 , Un i fo rm Ap p l i cat i o n fo r Secu ri ti es In du s t ry Reg is t rat i o n o r Tran sfer, wi th th e Fi n an ci al- 4
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[* 4 ] In du s t ry

Reg u l at o ry

Au t h o ri t y

(FINRA). 3 Th i s m ad e i td iffi cu l tfo r p et i t i o n er t o o b t ai n em

p l oym en t as a t rad er. Ho wev er, AM EX wi th drew t h e ch arg es wi t h i n 1 2 m o n t h s o f fi l i n g t h em , b u t t h e ch arg es co n t i n u edt o b e rep o rt edb y FINRA. St art i n g i n 2 0 0 5 p et i t i o n er act ed t o g etth e ch arg es ex p u n g edb y FINRA. So m et i m e i n 2 0 0 8 FINRA rem o vedth e ch arg es , aft er wh i ch p et i t i o ner b eg anl o o k i n g fo r t rad er p o s i t i o n s o n W al l St reet . He s ecu red a d ay -t rad i n g p o s i t i on wi t h a fi rm

b u t l eftth atp o s i t i on i n l es s t h an 9 0 d ay s. He s ecu redan o t h er d ay -t rad i n g p o s it i on b utal s o l eftth at p os i t i o n wi t hi n 9 0 d ay s . He was n o tab l e t o h o l da jo b fo r m o re t h an a few m o n t h s . Aft er wo rk i n g atth es e t wo d ay -t rad i n g p o s i ti o n s, p et i t io n er d eci d ed t o s tart h i s o wnfu ndu s i n g h i s trad in g s t rat eg y . In2 00 8 o r 2 0 0 9 p et i t i o ner s ig n ed an i n v es t m en tad v i s o ry

ag reem en twi t h a fam i l y o ffi ce t hatu s edp et i t i o n er’ s trad i n g
s t rat eg y as th e s ol e b us i n es s s t rat eg y fo r i t s fu nd . Acco rd i n g t o p et i t i o ner, i n 2 0 1 0

3 FINRA i s “ a qu as i -g o v ern m en tal ag en cy res p o n si bl e fo r o v ers eei n g th e s ecu ri t i es b ro k erag e i n du s t ry . ” M cCu n e v . SEC, 6 72 F. Ap p’ x 8 6 5 , 8 6 6 (1 0 t h Ci r. 2 0 1 6 ) (qu o t i n g ACAP Fi n ., In c. v . SEC, 7 8 3 F.3 d7 6 3 , 7 65 (1 0 t h Ci r. 2 0 1 5 )). FINRA req u i res an y

p ers o n wh o wo rk s i n t h e i n v es t m en tb an k in g o r s ecu ri t i es b u s i n es s o f a FINRA m em b er fi rm t o reg i s t er as a s ecu ri t i es rep res en t at i v e o r p ri n ci p al , am o n g o t h er cat eg o ri es . M at h i s v . SEC, 6 71 F.3 d 2 1 0 , 2 1 1 (2 dCi r. 2 0 1 2 ). To reg is t er, ap p li can t s m u s tco m p l et e a Fo rm

U4 , i n wh i ch th ey

p ro v i d e d et ai led i n fo rm at i o n ab o u tth ei r p ers o n al , em p l o ym en t , d i s ci p l i n ary , an dfi n an ci al b ack gro un d . Id
.- 5
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[* 5 ] th e t rad i n g s trat eg y

d i ds o wel l i t“ [a] bs o l ut el y kn o ck edth e co ver o ff t h e b al l ”. Pet i t i on er, thro u g h t h e fam i l y o ffi ce, m etwi t h a p ri v at e weal t h h ed ge fu n d t o s eeka $ 5 0 m i l l i o n i n v es t m en ti n h i s trad i n g s trat eg y . Th e p ri v at e weal th h ed g e fu n d offered t o b u y

p et i t i o ner’ s t rad i n g s t rat eg y fo r $ 5 m il l io n , b u tp et i t i o n er b el i ev edi twas wo rth $ 2 0 m il l i o n an dd ecl i n edth e o ffer. Pet i t i o n er s ub seq u en t ly p art edway s wi t h th e fam il y o ffi ce, ci t i n g co n fl i ctas o n e o f t h e reas o ns fo r h i s d ep artu re. Aft er h i s d ep artu re p et i t io n er o bt ai n eda m an ag em en tp o s it i o n ata h ed g e fu n d
. Th e h ed g e fu n daccep t edh is “ fu l l reco rd , wh i ch was n o w au d i t edas
ex em p l ary ”. A p art n er t h at m an ag edth e t ech n ol o g y fo r t h e h ed g e fu n dp ro m i s ed t o h el p p et i t i o n er au t om at e h is trad i n g s t rat eg y b u t , acco rd i ng t o p et it io n er, “ t h ey actu al l y d i dn ’ tkn ow as m

u ch as ” h e d id . Pet i t i o ner was fi redfro m th at p o s i t i o n aft er ab o ut1 3 t o 1 4 m on t h s b ecau s e h e “ h adn o d es i re t o wo rkfo r * * * [a] p art i cu l ar s en i o r p art n er” an dwas cri t i cal o f t h e h ed g e fu n d
. By th en p et it i o n er h adreg i s t eredan en t it y th ro u g h wh i ch h e co ul dd ev el o p a fu n d to u s e h i s trad in g s t rat eg y (i n v es t m en ten t i t y ). Pet i t i o n er b eg an effo rt s t o rai s e $ 5 0 m i l l i on fo r h i s i n v es tm en ten t i t y . Duri n g t h att i m e p et i t i o n er en gag ed a fo rei gn ex ch an g e al g o ri t h m i c t rad i n g s t rat eg y d ev el op er (fi rs ts erv i ce p ro v i d er), wh i ch au t o m at edh i s t rad i n g s trat eg y i n 1 2 m o n th s.- 6
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[* 6 ] Du ri n g th o s e 1 2 m o n t hs p et i t i o n er co n s i dered u s i n g real es t at e as an o t h er
as s et cl as s fo r h i s trad in g s t rat eg y . Pet i ti o n er, t h ro u g h an i n term ed iary , p res en t ed h i s trad i n g s t rat eg y t o a p o t en t i al i n v es t o r h e d es cri b edas a “ s ub p ri m e b i ll i o n ai re wh o i nv es t s h eav i l y

i n real es t at e.” Acco rd i n g t o p et i ti o n er, th e p o ten t i al i n v es t o r l i kedh i s trad in g s t rat eg y

b u t l at er d eci d ed n o tt o i n v es ti n i t . In 2 0 1 4 p et i t i o n er en g ag edan o t h er al g o ri t h m i c t rad in g s trat eg y d ev el o p er (s eco n d serv i ce p ro v i d er) b ecau s e h e wan t edt o i n cl u d e real es t at e as set s i n th e
au t o m at i o n o f h i s trad in g s t rat eg y , a fu n ct io n th e fi rs ts erv i ce p ro v i d er co u l dn o t
s up p ort . Pet i t io n er’ s g o al was t o ad dreal es tat e t o th e as s etcl as s g ro up i n o rd er t o
s eekan i n v es t m en tfro m

a fi rm th ath ad o v er $ 1 0 0 b i l l i o n i n as s et s . Pet i t i o n er m et wi t h a p ri n ci p al o f th e s eco nds erv i ce p ro vi d er. Pet i t i o ner d i s cl o s edt o thi s p ri n ci p al h i s s t atu s as a wh is t l eb l o wer. See i nfra p p . 9 -1 2 . Acco rd i ng t o p et i t i o n er, t h e p ri nci p al “ fel tth ere was a s t ro n g up s i d e t o * * * [t h e] p art i cu l ar [t rad in g ] s t rat eg y

an di n i t i al ly

o ffered t o b o th h el p wi t h t h e t ech n o l og y an dth en al s o p o t en t i al l y

p ro vi d e i n t ro du ct i o n s [t o i n v es t o rs ]
. ” Pet it i on er’ s rel at i o n s h i p wi t h th e s eco n ds erv i ce p ro v i d er s ub s equ en t l y en d ed
. In th e s u m

m er o f 2 01 5 p et i t i o n er m etwi t h an o t h er p o t en t i al i n v es t o r ata fam i l y ev en t . Th i s p ot en t i al i n v es t o r was a l on g t i m e fri en do f p et i t i o n er’ s co u s i n
an d a p ri n ci p al ata p ri v at e eq ui t y real es tat e fi rm . Pet i t i o n er al s o d is cl o s edt o th i s- 7
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[* 7 ] p ri n ci p al h is s t atu s as a wh i s tl eb l o wer. See i nfra p p . 1 2 -1 3 . Acco rd i n g t o p et i t i o n er, t h i s p ri n ci p al “ ru n s o n e o f t h e b es t * * * fu n ds fo r real es t at e i n t h e
wo rl d ” an dwas wi ll i n g t o t al k ab o u ta p o s s i b le i n v es t m en ti n p et i t io n er’ s trad i n g
s t rat eg y b u twan t edt o h ear m o re ab ou t i t . Th e p ri nci p al u lt i m at el y d eci d edn o tt o i n v es ti n p et i t i o ner’ s trad i n g s t rat eg y . Un ab l e t o fi n di n v es to rs fo r h i s trad in g s trat eg y , p et i t i o n er d ereg is t eredh i s i n v es t m en ten t i t y

an dd eci d edt o s wi tch careers . He i s cu rren t l y a g radu at e s tu d en t p u rs u i n g a m as t er’ s d eg ree i n real es t at e i n v es t m en tt o b eco m e a real es tat e
co n su l t an tan dad v i s er. Pet it i o n er d o es n o th av e an y p l an s t o retu rn t o h i s p ri o r
career as a t rad er o r t o u se h i s trad i ng s t rat eg y i n h i s cap aci t y

as a real es t at e
co n su l t an tan dad v i s er. Pet it i o n er wi l l n o ten gag e i n trad i n g o r fi n an ci n g real
es t at e as a real es t at e co n su l tan tan dad v i s er. II. Pet i t i o ner’ s Awaren es s o f Targ et s an d In fo rm at i o n Un d erl y i n g Wh i s t l eb l o wer Cl ai m s Pet i t i o ner b ecam e aware o f t h e i n fo rm at i o n u n derl y i n g th e wh is t leb l o wer cl ai m s s o m et i m e b efo re 2 0 0 7 wh en h e was s o l i ci t edas a p o t en t i al cl i en tfo r an i n v es t m en tp ro m ot edb y

v ari o us en t i t i es (t arg et s ). 4 In i t i al l y , p et i t io n er d ep o s i t ed

4 In th e m o t i o n p et it i o n er as s ert s thath e “ o b t ai n edm u ch o f t h e i n fo rm at i o n fo rm i n g [p ] et i t i o n er’ s s ect i on 7 6 2 3 (b ) cl ai m du ri n g th e co u rs e o f [p ] et i t i o n er’ s em pl o y m en t ”. Ho wev er, p et i t i o n er was n ev er em pl o y edb y th e t arg et s .- 8
-

[* 8 ] m o ney

t o p u rch as e an i n t eres t i n th e p ro m o t edi n ves t m en t . Aft er co n du ct i n g fu rt her res earch an ddue d i li g en ce, p et i t io n er co n cl u d edth at t h e i nv es t m en tl ack ed
eco n om i c s ub s t an ce an dwas l ik el y frau du l en t . Sh o rt l y t hereaft er p et i ti o n er wi t h drew t h e d ep o s i tan d d i d n o tp u rch as e t he p ro m o t edi nv es t m en t . Pet i t i o n er d i dn o t h av e an y

o t h er rel at i o n s h i p wi t h th e t arg et s . So m et i m e t h ereaft er p et i t i o n er was co n t act edb y the IRS, wh i ch was i n v es t i g at i n g th e i n v es t m en t p ro m o t ed b y th e t arg et s . Th e IRS co n t act ed p et i t i o n er b ecau s e i t h adi d en t i fi edh i m as s o m eo n e wh o h adi n i t i al l y m ad e a d ep os i tt o p u rch as e t he p ro m o t edi n ves t m en tb u twh o d idn o t p u rch as e i t . Pet i t io n er m etwi th s ev eral IRS em p l o y ees wh o as k ed qu es t i o n s ai m edat d et erm i n i n g h o w h e l earn edab o u t t h e p ro m o t ed i nv es t m en t , wh y h e wi th drew t h e d ep os i t , an dwh y

h e d i dn o tg o th ro u g h wi t h th e p ro m o t ed i n v es t m en t. Pet i t i o n er
v o l u n t eered h i s o p i ni o n th ato n t h e b as i s o f h i s p ro fes s i o n al b ack g ro u n d h e t h o u g h tth e s t rat eg ies u s edi n t h e p ro m o tedi n v es tm en twere n ot ap p ro pri at e fo r
o p t i o n s o r d eri v at i v es an dth at h e t h o u gh t t h e p ro m o tedi n v es t m en t co n s t i tu t ed frau d. Pet i t i on er d i dn o t , atthatt i m e, fi l e a wh i s t l eb l o wer cl ai m b utd i d co n s u l t wi t h an at t orn ey

ab o u t d o i n g s o. Pet i t i o ner was n ev er en g ag edo r cal l edas a wi t n es s b y

th e IRS o r t h e Dep art m en t o f J u s t i ce i n s ub s equ en tcri m in al p ro ceed in g s ag ai n s ti n di v i du al s as s o ci at edwi t h th e t arg et s .- 9
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[* 9 ] Acco rd i ng t o p et it i on er, fro m 2 0 07 u n t i l 2 0 1 4 h e fo l l owedp ub l i c p res s rel eas es fo r a cri m i nal p ro ceed i n g ag ai n s tan i n di v i du al as s o ci at ed wi t h o n e o f t h e t arg et s . In2 0 1 4 thati nd i v i dual was co nv i ct edan ds en t en ced , aft er wh i ch p et i t i o n er d eci d edt o fi l e h i s wh i s t l eb l o wer cl ai m s wi t h th e Wh i s t l eb l o w er Offi ce. OnJ u n e 2 5 , 2 01 5 , p et i t i o ner fi leda Fo rm 2 1 1 , Ap p l i cat i o n fo r Awardfo r Ori g i n al In fo rm at i o n , wi t h the Wh i s tl eb l o wer Offi ce t o s eekan awardfo r t h e i n fo rm at i o n h e h adv o l un teered t o t h e IRS ab o u tth e t arg et s i n 2 00 7
. III. Pet i t i o ner’ s Di s cl os u res Ab ou tHi s Wh i s t l eb lo w er Cl ai m s Pet i t i o ner d i s cl o s edt o atl eas tthree i n d i v idu al s th at h e h adb een co n t act ed b y th e IRS co ncern in g the i n ves t m en tp ro m o t edb y t h e t arg et s an dth ath e was ei t h er t h i n k i n g o f fi l in g o r h adfi l edwh i s t l eb lo wer cl ai m s ag ai n s tthe t arg et s . A. Di s cl o s u re t o Pri nci p al atSeco n d Serv i ce Pro v i d er Du ri n g p rel i m i n ary

co n v ers at i o n s wi th th e p ri n ci p al atth e s eco nds erv i ce p ro v id er, s ee s up ra p . 6 , p et i t i o n er d i s cl o s edh i s wh i s t l eb l ower s t atu s an dth ath i s wh i st l eb l o wer cl ai m s i n vo l v eda p ro m o t edi n v es tm en twi t h a fo rei g n ex ch an g e p ro duct . Hi s d i s cl o s u re, h o wev er, cam e b efo re p et i t i o ner fi l edh i s wh i s t l eb l o wer cl ai m s wi t h t h e Wh i s t l eb l o wer Offi ce. Wh en as k edwh y h e m ad e t h e d i s cl o s u re, p et i t i o n er t es t i fi edth atth e p ri n ci p al “ i s n o tab l e i n the p res s fo r h av in g u nco v ered , m at h em at i cal l y , th atth e M ad o ff ret u rn s were frau du l en t ”. Pet i ti o ner co n s i d ered- 1 0 -

[* 1 0 ] th e p ri n ci pal t o b e “ an up s t an d er i n th e m ark etp l ace” wh o se “ rep u t at i o n i s g o l d ”. Pet i ti o n er t es t ifi edth at“ o n ce y o u h av e a g o l d en rep u tat i o n o n W al l St reet , ev ery o n e can tru s ty o u .” Pet it io n er b el i ev edth atth e p ri n ci p al co u l dp ro v id e h i m wi t h g ui d an ce o n wh atn ex ts t ep s t o t ak e an dth e b es tp ract i ces fo r fi l i n g a wh i st l eb l o wer cl ai m

b ecau se p et i t i o n er was fru s t rat edthatth e at t orn ey h e h adm et wi t h ab o u th i s wh i s t l eb l ower cl ai m s was t ak i n g t oo l o n g . Sp eci fi cal l y , p et i t io n er as k ed wh eth er t h e p ri n ci p al h adan y u nd ers t an d i n g
o f wh atex p ert is e wo u l db e n eed edi n a cas e i nv o l v i n g th e p ro m o t edi n v es t m en t

“ b ecau s e t he p ri n ci p al h adwri t t en a b o o k an dart i cl es o n t ax s tru ctu res an dt ax effi ci en ts t rat eg i es .” Pet i t i o n er d i d n o td i s cl o s e t o th e p ri n ci p al th e n am e o f t h e t arg et s atthatt i m e. Th e p ri n ci p al i n d i cat edth ath e d i dn o th av e t he n eces s ary
ex p ert i s e an d reco m

m en d edth atp et it i o n er s p eakt o an i n d iv i du al i n th e fo rei g n
ex ch an g e area. Pet i t io n er n ev er p u rs u ed t h atreco m m en dat i o n . Fo l l owi n g th e d i s cl o s u re, t h e s eco nds erv i ce p ro v i d er wo rk ed wi th p et i t i o n er o n h o wt o p it ch h i s trad i n g s t rat eg y t o p ot en t i al cl i en t s an dwas wi l l i n g t o h av e h i m

p ub l i cl y refer t o i t as h i s s el ect i v e quan t i t at i v e p ro v i d er. Pet i ti o n er t es t i fi edth ath e was “ ex ci t edth ato n e o f t h e wo rl d ’ s b es t , m os tren o wn ed qu an ti t at iv e ex p ert s was wi ll i n g t o s up p o rt ” h i s t rad i n g s t rat eg y .- 1 1 -

[* 1 1 ] Th e s eco n ds erv i ce p ro v i d er i n v i t edp et i ti o n er t o s o m e o f i t s acad em i c an d cl i en t s em i n ars . Itwas ato n e o f t h o s e s em i n ars i n th e s u m m er o f 2 01 5 , aft er h e h ad fi l edh is wh i s tl eb l o w er cl ai m s wi t h th e Wh i st leb l o wer Offi ce, t h at p et i t i o n er d i s cl os edt o th e p ri n ci p al th e n am e o f o n e o f t h e t arg et s . Pet i t i o n er t es t i fi edth at h e was atan i n fo rm al g at h eri n g aft er t h e s em i n ar an dwas t al ki n g t o h i s acco u n t an t
an d t o th e p ri n ci p al . Pet i ti o n er was o pen l y d i s cu s s i n g h i s th en -fi l edwh is tl eb l o wer cl ai m s wi t h h i s acco u n t an t 5 an dm en t i o n edth e n am e o f o n e o f t h e t arg et s . In p art i cu l ar, p et i t i o n er was d i s cu s s i n g t h e p ubl ic n ews ab o u tth e v ari o u s o n g o i n g cri m i n al i n v es t i gat i o n s i n wh i ch atl eas to n e o f t h e t arg et s o r p ers o n s affi l i at ed wi t h atl eas to n e o f t h e t arg et s was i n vo l v edan da p ub l i c rep o rtthath adb een i s su edrel at i n g t o t h att arg et ’ s ab u s i v e o p ti o n s s t rat eg i es . Acco rd i n g t o p et i t i o n er, wh en th e p ri n ci p al h eard th e t arg et ’ s n am e h e “ s h u s hed ” p et i t i o n er b ecau s e t h e t arg etwas rep res en t edatth e s em i n ar. Pet i t i o n er i n ferredth atth e t arg etwas a cl i en t o f t h e s eco n ds erv i ce p ro v i d er b u td i d n o tco nfi rm th at . Pet i t io n er t es t i fi ed t h ataft er t h atco n vers at io n , th e rel at i o n s h i p wi t h th e s eco n ds erv i ce p ro v i d er

5 Pet i t i on er t es t i fi edthath e h add i s cl o s edth e co nt en t s o f t h e wh i s t l eb l o wer cl ai m s t o t h e acco u n t an ts o m et i m e i n 2 01 4 . Th e reco rdo n p et i t i o n er’ s m o ti o n d o es no ts h o w th e ci rcu m s t an ces u n d er wh i ch h e m ad e t h e d i s cl o s u re t o h i s acco u n t an t .- 1 2 -

[* 1 2 ] d i s s i p at ed . Th e s eco n ds erv ice p ro v i d er d i dn otm en t i o n p et i t i o n er’ s wh i st l eb l o wer cl ai m s as a reas on fo r n o tco nt i n ui n g th e rel at i o ns h ip
. B. Di s cl o s u re t o Pri nci p al atPri v at e Equi ty Real Es t at e Fi rm Pet i t i o ner al s o d is cl o s edh i s wh i s tl eb l o wer cl ai m s t o h i s co u si n ’ s fri en d , th e p ri n ci p al atth e p ri v at e eq u i t y real es t at e fi rm . See s upra p . 7 . Pet i t i o ner t es t i fi ed t h atb efo re m eet i n g wi th th e p ri n ci p al “ m y co u s i n s s ai dth at t hey

h av e kn o wn* * * [t he p ri n ci p al ] al l th ei r l i fe, an dh e i s as m u ch fam i l y

as I am , an d t h atth ey

wan t ed t h e fu l l d i s cl o s u re. An d I ag reed
. ” 6 Atth e m eet i n g wi t h th e p ri n ci pal , p et i t i o n er d i s cu s s edth e wh i s t l eb lo wer cl ai m s . Pet it i o n er t es t ifi edth at h e t ol dth e p ri n ci p al t h atth e i n fo rm at i o n was “ h i gh ly co n fi d en t i al ”. Wh en as k edwh y h e fel tth e n eed t o d i s cl o s e t h e wh i s t l eb lo w er cl ai m s t o th e p ri n ci p al , p et i t i o ner t es t i fi edth ati n p arti t was due t o t h e p ri n ci p al ’ s b ei n g “ qu i et l y kn o wn as s o m eb o dy

wh o al s o p rev en teda Bo s t on ch ari t y i n i n v es t i n g i n a M ad o ff fu nd .” Pet i t i o n er fu rt h er t es t i fi edth atth i s p ri n ci pal was an “ up s t an d er” wi t h “ a fan t as t i c rep u t at i o n .” Pet i t i o ner al s o d is cu s s edh i s trad i n g s t rat eg y atth atm eet i n g an d b el i ev edi t
was o ne o f t h e b es tm eet i n g s h e ev er h ad . Pet i t i o ner t es ti fi edth atth e p ri n ci p al
s ai dth ath e was h ap p y

t o h el p h i m

wi t h h i s t rad in g s t rat eg y an d t h atth e p ri n ci p al

6 Th e reco rdo n th e m o t i on d o es n o t s ho w th e co nt ex tu nd er wh i ch p et i t i o n er i n i t i al l y di s cl o s edthe d et ai l s o f t h e wh is t leb l ower cl ai m s t o h i s co u s i n s .- 1 3 -

[* 1 3 ] h ada fri en dat an i n s t i tu t i o n th atwo u l d b e i n t eres t edi n h el p i n g p et i t i o n er wi t h i t . Aft er t h atm eet i n g , p et i t i o n er s en t t he p ri n ci p al a fu l l p res en t at i o n an d i n fo rm at i o n ab o uth i s trad i ng s t rat eg y . Pet i t io n er al s o s en tth e p ri nci p al a co p y o f t h e wh i s tl eb l o w er cl ai m s th ath e h ad fi l edwi t h th e Wh i s t l eb l o wer Offi ce. Pet i t i o ner t es t i fi edth ath e recei v edo n e em ai l fro m th e p ri n ci p al b utth at t h ere was n ev er an y

o t h er fo l l o wup aft er t h at . Pet i ti o n er s up p l em en t edh i s d ecl arat io n i n s up p ort o f h i s m o t i o n wi t h th atem ai l , wh i ch s t at es : Greatt o m eety o u as wel l . Readth ro u g h al l o f y o ur i n fo rm at i o n . Wh i l e t h e p arab o l i c t rad i n g co n cep ts eem s l i k e an i nt eres t i ng way fo r h o l d er o f i ll i qu i das s et s t o t ak e ad v an t ag e o f t h e m ark etv o l [s i c] , i t real l y d o es n ’ t fi twel l wi t h an yt h i n g we d o . Th ere m u s t b e s o m eo n e o u tth ere wi t h t he t i m e an dat t en t i o n s pan t o l o o kati ts eri ou s ly ! Th e wh i s t l eb l o wer s ui t--n o t o u r k in d o f t h in g --i s , wel l, fas ci n at i n g! I d o n ’ th av e an y

i dea o f i t s l i k el i h o o d o f s u cces s , b u ti t i s o ne k i n g s i zedb i to f o p t i o n al i t y !! C. Di s cl o s u re t o CFO o f Real Es t at e Fi rm M o s t recen t l y , as p arto f a g ro up p ro jectas a g radu at e s tu den t , p et i t i o n er
m etwi th a ch i ef fi n an ci al o ffi cer (CFO) o f a real es t at e fi rm . Th e CFO t o o k i n t eres ti n an i n v es t m en t ex ecu t i v e s u m m ary t h atp et i ti o n er wro t e fo r t h e g ro up p ro ject
. Acco rd in g t o p et it io n er, t h ey d ev el op ed“ a v ery

qu i ck an d fu l l d i s cl o s u ret y p e rel at i o n s h i p ”. Pet i ti o n er d i s cu s s edwi t h th e CFO h i s i n t eres ti n d ev el op i n g- 1 4 -

[* 1 4 ] h i s trad i n g s t rat eg y fo r real es t at e an d s en t th e CFO b ack g ro u n do n h i s t rad i ng s t rat eg y . Pet i t i o ner t es t i fi edth atth e CFO “ lo v ed i t”, an d t hey d i s cu s s edfo rm i n g a p art n ers hi p i n wh i ch th e CFO wo ul db e t h e m an ag i ng m em b er. Th e t wo
ex ch an g ed d o cu m en t s an dh ada l u n ch m eet i n g , du ri n g wh i ch p et i ti o n er d i s cl o s ed t o the CFO h i s wh i s t l eb l o w er cl ai m s . Wh en as k edwh y h e m ad e th e d i s cl os u re, p et i t i o n er t es t i fi edth atth e CFO i n t en d edt o s eeka d i rect i nv es t m en t fro m th e CFO’ s fi rm

as s eedcap i t al . Pet i t i o ner fu rt h er t es t i fi edthati n d et erm in i n g wh et h er t o i nv es tth e CFO o r t h e fi rm m i g h td i s co v er p et i t io n er’ s wh is t l eb l o wer cl ai m s wh i le co ndu ct i n g i t s du e d i l i g en ce. Th e CFO an d p et i t i o n er d i d n o t p urs u e a p ro fes s i on al rel at io n s h i p . IV. Pet i t i o ner’ s M o ti o n OnM arch 3 0 , 2 0 1 7 , p et it i o n er t i m el y fi l eda p et i t i o n wi th th e Co u rt fo r
rev i ew o f th e fi n al d et erm i n at i o n p u rs u an t t o s ect io n 7 62 3 (b )(4 ) an dRu l e 3 4 1 (b ). Onth ats am e d ay , p et i t i o n er fi l edh i s m o t i on . On Ap ri l 6 , 2 0 1 7, t he Co u rt t em p o rari l y s eal edth i s cas e p en d i n g res o l ut i o n o f p et i ti o n er’ s m o t i o n. OnM ay 2 , 2 0 1 7 , p et i t i o n er fi l eda d ecl arat i o n i n s up po rto f h i s m o t i o n . OnSep t em

b er 2 0 , 2 0 1 7 , res p on d en t fi l eda res po n s e o b ject i ng t o p et i t i o n er’ s m o t io n (o b

ject io n). OnOct o b er 2 5, 2 0 17 , p et i t i o ner fi l eda rep l y t o- 1 5 -

[* 1 5 ] res p o n d en t ’ s o b

j ect io n . OnJ an uary2 2 , 2 0 1 8 , res p o nd en tfi l eda s u r-rep l y t o p et i t i o n er’ s rep ly
. Th e Co u rtco n du ct eda h eari n g o n p et i t i o n er’ s m o t i o n o n Feb ru ary 2 1 , 2 0 1 8. Pet i t io n er t es t i fi edatth e h eari n g . Aft er t h e h eari n g , th e Co u rti s s u edan o rd er d i rect i n g p et i t i o n er t o s up p l em en th is p rev i o us l y s ub m i t tedd ecl arat i o n t o i n cl u d e t h e em ai l th atp et i t io ner h adt es t i fi edt o du ri n g th e h eari n g . Th e Co u rt al s o
o rd eredp et i ti o ner an d res p on d en tt o fi l e s i m u l tan eo u s m em o ran du m s o f l aw t o ad dres s wh et h er th e s o ci et al i n t eres ti n the p ubl i c’ s ri g h tt o kn o w wh o i s u s i n g th e Co u rtwas o u t w ei gh edb y p et i t i o n er’ s al leg edfu tu re eco n o m i c h arm an dwh y red act i on s o f t h e t arg et s ’ nam es , as p ro v i d edb y Ru l e 3 45 (b ), wo u l d n o t b e
s u ffi ci en tt o p rev en t fu tu re eco n o m i c h arm t o p et i t i o n er. Di s cu ss i o n Ru l e 3 4 5(a) al l o ws p et i t io n ers i n wh i s t l eb l ower act i o n s t o m o v e t h e Co u rt fo r p erm i s si o n t o p ro ceed an o nym o u s l y . Th e m o v an t m u s ts etfo rth a s u ffi ci en t , fact -s p eci fi c b as i s fo r an o n ym i t y . Id . Th e Co u rtwi l l p erm i ta wh i s t l eb l o wer t o p ro ceed an o nym o u sl y

i f t h e wh i s t l eb l o wer p res en t s a s u ffi ci en ts h o wi n g o f p o t en t i al h arm

th ato u twei g h s th e co m

pet i ng s o ci et al i n t eres to f t h e p ub l i c’ s ri g h t t o kn o wwh o i s u si n g th e Co u rt . See Wh i s t leb l ower 1 2 5 6 8 -1 6 W v . Co m m i s s i o n er, 1 4 8 T.C. _

_ , _

_ (s l i p o p . at4 -5 ) (M ar. 2 2 , 2 0 17 ); Wh i s t l eb l ower 1 4 1 0 6 -1 0 W v .- 1 6 -

[* 1 6 ] Co m

m i s si o n er, 1 3 7 T.C. 1 8 3 , 2 0 5 (2 0 11 ); An o n ym o u s v . Co m m i s s i o n er, 1 2 7 T.C. 8 9 , 9 4 (2 0 0 6 ). Th e d eci s i o n wh ether t o al l o wa p art y t o p ro ceed
an o nym o u s l y

res t s wi t hi n th e s o u n dd i s cret io n o f t h e tri al co u rt . Wh is tl eb l o wer 1 4 1 0 6 -1 0 W

v . Co m m i s s i o n er, 1 3 7 T.C. at1 9 2 ; An o n ym o u s v . Co m m i s si o n er, 1 2 7 T.C. at9 4 . Th e Co urt m

u s t d eci d e wh et h er th e ri s ko f h arm t o p et i t i o n er
o u t wei gh s t h e co m

p et i n g s o ci et al i n t eres tats t ak e. I. Part i es ’ Arg u m en ts In p et it i o n er’ s m o ti o n h e al l eg es th atd i s cl o s i ng h i s i den t i t y wi l l res u l ti n th e ri sko f ret al i at i o n , p h y si cal h arm , s o ci al an dp ro fes s io n al s t i g m a, an deco n o m i c du res s , h arm s th atg o b ey on dm ere em barras s m en t an dan n o y an ce. Pet i ti o n er g en eral l y al l eg es th atd i scl o s u re o f h i s i d en ti t y m ay ad v ers el y

affect h i s ab i l i t y

t o
o b t ai n o r m ai n t ai n em

p lo y m en to r redu ce t he am o u nto f em pl o ym en t . Pet i t i o n er al s o g en eral ly

al l eg es th atrev eal i n g h i s i d en t it y h as th e p o t en ti al t o s ev erel y d am ag e h i s s t an d i n g i n th e p ro fes s i on al co m m u n i ty th atp ro v i d es h i s cu s t o m ary
s o u rce o f em

p l o ym en t . Th e m o t i o n d o es n o tp ro v i de an y s p eci fi c ex am

p l es t o
s up p ortth e al l eg ed ri s k s o f h arm . In th e d ecl arat i o n p et i t i o n er as s ert s th at h e h ada s u cces s fu l career i n th e fi nan ce i n du s t ry

b efo re h e p ro v i d edi n fo rm at i o n t o the IRS. Pet it i o n er referen ces
m ak i n g s ev eral d i s cl o s u res o f h i s wh i s t l eb l o wer cl ai m s . Fo r i n s tan ce p et i t io n er- 1 7 -

[* 1 7 ] s t at es : “ Ti m e aft er t i m e, wh en I rev eal edm y wh is t leb l owi n g act i v i t i es i rres p ect i v e o f t h e i n i t i al i n -p ers o n o r fo l l o w up req u es t , th e b u s in es s p ro s p ect s
wen t rad io s i l en t. Rep eat ed l y , o n ce m y act i o n s were kn o wn , co n v ers at io n s ceas ed
an d d o o rs cl o s ed .” Pet i t i o n er as s ert s thatfai l u re t o p ro tecth is i d en t i t y m o v i n g fo rwardwi l l cau s e h i m

m ore h arm

an dm ak e i ti m

p o ss ib l e fo r h i m

t o en g ag e i n v es t m en tp ro fes s io nal s . Th e d ecl arat i o n d o es n o tp ro v i d e an y s p eci fi c ex am

p les t o s up p o rtth e al l eg edri s ko f eco n o m i c h arm t o p et i ti o n er ei th er as a s tu d en to r i n h i s fu ture career as a real es t at e co n s ul t an tan dad v i s er. Pet i t i o n er d o es n o tas s ert i n the d ecl arat i o n t h ath e h as ch an g edcareers . In th e d ecl arat i o n p et i t i o n er al so al l eg es th ath e “ ex p ect [s ] s ev ere ret al i at i o n ” an dth at“ t h e d an g er o f p o t en t i al p h y si cal h arm t o m e [p et i t i o n er]
rem ai n s o f p aram o u n t co n cern . ” Pet i t i on er al leg es a ri s k o f p o t en t i al p h y s i cal h arm o n th e b as i s o f “ v ari o u s v erb al co n fro n t at i o n s o r t h reat s d irect l y fro m k ey cri m i n al s o v er t h e y ears i n t h i s m as s i v e/ l en g t h y cri m i n al cas e.” Th e d ecl arat i o n d o es no tp ro v i d e an y

s p eci fi c ex am

p l es o r i d en t i fy

p art i cu l ar i n d iv i dual s rel at edt o t h e t arg et s t o s up p o rtp et i t i o n er’ s al l eg edri s ko f ret al i at i o n o r p h y s ical h arm . Res p o n d en ti n h is o b

ject i o n co n t en d s t h atp et i t io n er h adal read y d i s cl o s ed h i s s t atu s as a wh i s t l eb l o wer t o m u l t i p l e i nd i v i du al s, i n cl u d i n g o t h er p ro fes s i o n al s i n h i s fi el d ; was n o tem

p l o y edb y th e t arg et s ; h adn o ti den t i fi edan y s p eci fi c- 1 8 -

[* 1 8 ] p ers o n s wh o co ul d cau se h i m h arm i f h i s i d en t it y

were kn o wn ; an dh adn o t
s etfo rt h a s u ffi ci en t , fact -s p eci fi c b as i s t h at d em o n s t rat eda ri s k o f h arm t o p ro ceed an o nym o u sl y . Pet i t i o ner i n h i s rep l y arg u es th at“ [t ] h e factth atp et i t i o n er h as m ad e a l i m i ted d is cl os u re o f h i s s tatu s as a wh i s t l eb l o wer i s n o t d i sp o s i t i v e.” Fu rt h er, p et i t i o n er arg u es th ati ti s “bes id e t h e p o i n t” t h at h e ex p eri en cedp ri o r eco n o m i c h arm du e t o a l o s s o f b u s i n es s o p p o rtu ni t i es res u l t i n g fro m h i s o wn d i s cl o s u res b ecau s e h e s o u g h tt o p rev en tfu tu re h arm b y req u es t i n g an o n ym it y . In
res p o n d en t’ s s ur-rep l y , res p o n d en tag ai n co n t en ds th at t h e g ran to f an o n ym i t y
wo u l dn o t“ u n do an y

o f t h e al l eg ed d am ag e cau s edb y p et i t io n er’ s o wns el fd i s cl os u re”. Pet i t i o ner i n h i s m em o ran du m o f l aw as s ert s th atacad em i c res earch an d
s tud i es s h o w “ t h atwh i s t l eb l o wers h av e s ig n i fi can t l y wo rs e career t raject o ri es as
co m p aredt o s im i l ar em

p lo y ees wh o d o n o t en g ag e i n wh i s t l eb l o wi ng .” Pet i t i o n er arg u es th ath is p as tex peri en ces o f eco no m i c h arm aft er h i s d i s cl o s u res

“ reas o nab l y

‘ p rev i ew’ th e fu tu re eco n o m i c h arm th atco u l dres u l tfro m

d i s cl o s i ng
* * * [p et i t i o n er’ s ] i d en ti t y as th e p et i t i o n er i n t h i s p ro ceed i n g .” Res p o n d en ti n h is m em o ran du m o f l aw co n t en d s thatp et i t i o n er h as n o t p ro v enth atp et i ti o n er’ s fai l u re t o o bt ai n fu n d i n g fo r h i s trad i n g s t rat eg y was du e- 1 9 -

[* 1 9 ] t o h i s d i scl o s u res ab o u th i s s t atu s as a wh i s t l eb l o w er. In s t ead , res po n d en t
co n ten d s t h atth e fai l u re t o o b tai n fu n d i n g was ju s tas l i k el y t o b e du e t o t h e i n v es t o rs n o tb ei n g i nt eres tedi n th e t rad i n g s trat eg y an dthatn o n e o f t h e p o t en t i al i n v es t o rs i n d i cat edth atth ey d eci d ed n ott o i n v es t b ecau s e p et i t i o n er was a wh i st l eb l o wer. Res p o n d en t al s o co n t en d s th atp et it i o n er m ad e t he ch o ice t o ch an ge careers an dth ath e h as n o ts h o wnan y s p eci fi c eco n o m i c h arm

th atwo u l d
res u l t i n h i s n ew career fro m a d i s cl o s u re o f h i s i d en t it y i n th is p ro ceed i n g. II. Ri s k s o f Harm In th e m o t i on p et i t i o n er al l eg es th atd i s cl o s i n g h i s i d en t i t y wi l l res u l ti n th e ri sko f ret al i at i o n , p h y si cal h arm , s o ci al an dp ro fes s io n al s t i g m a, an deco n o m i c du res s . Ho wev er, atth e h eari n g an d i n th e m em o ran du m o f l aw p et i t i o ner as s ert s t h atth e p ri m ary

fact or t o wei g h i s th e ri s ko f fu tu re eco no m i c h arm an dth atth e fact ors o f s o ci al an dp ro fes s i o n al s t i g m a an deco n o m i c du res s are as s um edb y th i s fact or. 7 Th e Co u rth as ad dres s eda wh i s t l eb l o wer’ s m o t io n t o p ro ceed an o n ym o u s l y i n s i x rep o rt s , fi v e o f wh i ch g ran t ed t h e wh i s tl eb l o wer an o n ym i t y an do ne wh i ch d en iedan o n ym i ty . InWh i s t l eb l o wer 1 4 1 06 -1 0 W v . Co m m i s s i on er, 1 3 7 T.C. at

7 Al t h o ug h p et i t i o n er t es ti fi edab o u t an as pect o f h i s m ed i cal h i s t o ry , h e d i d n o tas s ertth ath i s cas e i nv o l v es h i g h l y s en s i t i v e o r p ers o n al i n fo rm at i o n that s h o u ldn o tb e d i s cl o s ed
.- 2 0 -

[* 2 0 ] 1 8 5 , th e wh i s t l eb l o wer b ecam e aware o f anal l eg edt ax u n d erp aym en twh i l e
em pl o y edb y th e n o n co m

pl ian tt ax p ay er. Aft er fi l i n g a Fo rm 2 11 wi t h th e Wh i s t l eb l o wer Offi ce, th e wh i st l eb l o wer o b t ai neds i m i l ar n ew em p l o ym en t
o u t s i d e o f t h e n o n co m

p l i an t t ax p ay er. Id . Ing ran t i n g an o nym i t y t h e Co u rtfo u n d , i n p art , thatthe wh is t l eb lo wer h ad d em o n s t rat edi n an affi d av i ta s u ffi ci en t l y
s ev ere ri sko f p ro fes s i o n al s t ig m a, ret al i at i o n , an deco n o m i c du res s . Th e Co u rt
reas on edth atd i s cl o s i n g the wh i s t l eb l o wer’ s i d en t i t y wo u l dl i k el y cau s e s ev ere d am ag e t o t h e wh i s tl eb l o w er’ s s t an di n g i n th e p ro fes s io n al co m m u n i t y an d jeo p ard i ze t h e wh i s t l eb lo w er’ s cu rren tan dfu tu re em p l o ym en tb ecau s e t h e wh i st l eb l o wer acq u i redth e i n fo rm at i o n i n t h e n orm al co u rs e o f em p l o ym en tfo r t h e n o nco m

p l i an t t ax p ay er an dwas p ri v y t o i n t ern al d el i b erat i o n s an d
co m m u n icat io ns reg ard i n g th e ev en t s th atg av e ri s e t o th e n o n co m p l i an tt ax p ay er’ s
u n d erp aym en t . Id . at2 0 3 -2 0 4
. Th e Co u rtfo u n d t h atth e wh i s t l eb l o wer’ s fu tu re
em pl o y ab i l i ty

co u l d be affect edb ecau s e a fu ture em p l o y er co u l d as k fo r a l i s to f p rev i o u s em

p l o y ers , wh i ch wo u l di n cl u d e t he n o n co m p li an t t ax p ay er, an d t h e wh i st l eb l o wer co u ld s om ed ay s eekreem

p l o ym en twi t h th e n o n co m p l i an tt ax p ay er
o n l y t o face ret al i at i o n . Id . at2 0 4
. In Wh i s t l eb l ower 1 3 4 1 2 -1 2 W v . Co m m i s s i on er, T.C. M em o . 2 0 1 4 -9 3 , at
* 4 -* 6, t he Co u rtg ran t edth e wh i s tl eb l o wer’ s m o t i o n t o p ro ceed an o n ym o u s l y o n- 2 1 -

[* 2 1 ] th e b as i s o f t he fact s al leg edi n th e p et i t i o n an da d ecl arat io n th at d em o n s t rat edth atd i scl os u re o f th e wh i s t l eb l ower’ s i d en t i t y co u l dres u l ti n t h e ri s k
o f ret al i at i o n , s o ci al an dp ro fes s i o n al s t i g m a, an d eco n o m i c du res s . Inth atcas e t h e wh i s tl eb l o w er rep o rt edt ax v i o l at i o n s o f a fo rm er em p l o y er, t h e n on co m

p l i an t t ax p ay er. Id . at* 2. Th e wh i s t l eb l o w er was ret i redb utrecei v edret i rem en t b en efi t s fro m

the n on co m

p l i an tt ax p ay er. Id . Th e Co urtaccep tedth e wh i st l eb l o wer’ s as sert i o n s th atth e n o n co m p li an tt ax p ay er co u l dp o s s i b l y wi t h h o l d
o r t erm i nat e t h e ret i rem en t b en efi t s , wh i ch th e wh i s t l eb l o w er rel i edup o n an d wi t h o u twh i ch t h e wh i s t leb l o wer wo u l d b e fo rcedt o s eekfu ture em p l o ym en t . Id
. at* 5 -* 6 . Th e Co u rtal s o fo u n d t h atth e wh i s t l eb l o wer co ul dface p ro fes s i o n al
o s t raci s m an dd i ffi cu l t y s ecu ri n g fu tu re em p l o ym en t. Id . at * 6. In Wh i s t l eb l ower 1 1 3 3 2 -1 3 W v . Co m m i s s i on er, T.C. M em o . 2 0 1 4 -9 2 , at* 2 , an d Wh is t l eb l o wer 1 0 94 9 -1 3 W v . Co m m i s s i o n er, T.C. M em o . 2 0 1 4 -9 4 , at
* 6 , th e Co u rth el d t h atth e wh i st l eb l o wers ’ as s ert edfact s i n th e p et i ti o n s an d affi d av i ts d em o n s t rat edth atp ro ceed i n g an o n ym o us l y was n eces s ary t o p ro t ect t h ei r p ro fes s i o n al rep u t at io n, eco n o m ic i n t eres t s , an d p ers on al s afet y . Th e wh i st l eb l o wers rep o rt ed a t ax frau ds ch em e t hey h add i sco v ereddu ri ng th e co u rs e
o f t h ei r em

p l o y m en tth ati n v o l v edth ei r em pl o y er an ds ev eral rel at eden t i t i es an d
s ub s i d i ary

co m p an ies rel at edt o th ei r em p l o y er, th e n o n co m

pl i an tt ax p ay ers .- 2 2 -

[* 2 2 ] Wh i s t l eb l o wer 1 0 9 4 9-1 3 W v . Co m m i s si o n er, T.C. M em o . 2 0 1 4 -9 4 , at* 2 ; Wh i s t l eb l o wer 1 1 3 3 2 -1 3 W v . Co m m is s io n er, T.C. M em o . 2 0 1 4 -9 2 , at * 2 . Th e
n o n co m p l i an tt ax pay ers were al l eg edt o h av e t i es t o t erro ri s t o rg an i zat i o n s, h ad al read y u s edarm edm ent o rai dth e wh is t leb l owers ’ o ffi ces , an d h adp rev i o u s l y t h reat en ed t h e wh i s t l eb l o wers ’ l i v es . Wh i s t l eb lo wer 1 0 9 49 -1 3 W v . Co m m i s s i o n er, T.C. M em o . 2 0 1 4 -9 4 , at* 6 ; Wh i s tl eb l o wer 1 1 3 3 2-1 3 W v . Co m m i s s i o n er, T.C. M em o . 2 0 1 4 -9 2 , at* 1 2
. In Wh i s t l eb l ower 1 2 5 6 8 -1 6 W v . Co m m i s s i on er, 1 4 8 T.C. at_

_ (s l i p o p . at 3 ), the wh i s t leb l o wer was p rev i o u s l y em p l oy edb y an en t it y rel at edt o th e
n o n co m p l i an tt ax pay er an dl earn edab o u tth e v io l at i o n s i n th e n o rm al co urs e o f t h e wh i s tl eb l o w er’ s em

p l o ym en t . Ina d ecl arat i o n, t he wh i s tl eb l o wer al leg eda ri sko f ret al i at i o n , p h y si cal h arm , s o ci al an dp ro fes s io n al s t i g m a, an deco n o m i c du res s . Id . at(s l i p o p . at 3 ). Th e Co u rtfo u n dth atth e wh is t leb l o wer h ada wel l -fo un d edco n cern an dh ad m ad e a s uffi ci en ts h o wi n g t h atd i s cl o s u re o f t h e wh i st l eb l o wer’ s i d en t it y

wo u l d cau s e t h e n o n co m pl i an t t ax p ay er t o ret al i at e ag ai n s tth e wh i s tl eb l o w er an dth e wh i s t l eb l o wer’ s fam i l y , wh i ch wo u l d res u l ti n p ro fes s i on al an dp ers o n al o s t raci s m , eco n o m i c l os s , an dth reat s t o th e s afet y o f t h e wh i st l eb l o wer’ s fam il y . Id . at, (s l i p o p . at3 , 8 ).- 2 3 -

[* 2 3 ] In o n l y

o n e rep o rth as th e Co u rtd en i ed a wh i st l eb l o wer’ s req u es t t o p ro ceed
an o nym o u s l y . See Wh i s t leb l o wer 1 43 7 7 -1 6Wv . Co m m i s s io n er, 1 4 8 T.C. (J u n e 2 8 , 2 0 17 ). Th e Co u rtfo un dthatth e wh i s t l eb l o w er h adn o tes t ab li s h eda
s u ffi ci en tfact -s p eci fi c b as i s fo r p ro ceed i n g an o n ym o u s l y . Id . at(s l i p o p . at 1 3 ). Th e wh i s t l eb l o wer’ s d i s co v ery o f t h e i n fo rm at i o n l ead i n g t o th e wh i st l eb l o wer cl ai m s d eri v edfro m p ub li c i n fo rm at i o n . Id
. at(s l ip o p . at7 ). Th e wh i s t l eb l o wer d i dn o th av e an em p l o ym en to r fi du ci ary rel at i o n s h i p t o an y o f t h e n o nco m

p l i an t t ax p ay ers . Th e wh i s t l eb l ower d i dn o ti d en t i fy an y cu rren to r p ro s p ect i v e cl ien t s . Id
. Th e wh i s t leb l o wer d i dn o ti d en t ify an y n o n co m p l i an t t ax p ay er wh o wo u ld h av e t h e p o wer t o , an d m i g h t b e ex p ect ed t o , ret al iat e ag ai n s t t h e wh i s tl eb l o w er. Id . at(s l i p o p . at1 2 ). Th e wh i s t l eb lo wer m en t i o n edn o
s p eci fi c ri s kb u trel i edo n g en eral i zedcl ai m s t o s up p o rtan al l eg ed ri s ko f b ei n g b l ack l i s ted . Id . at(s l i p o p . at7 -8 ). Th e Co u rtackn o wl ed g edth atd es p i t e t h e wh i st l eb l o wer’ s weakfact -s p eci fi c b as i s fo r an o nym i ty i tm i g h th av e o th erwi s e b een in cl i n ed“ t o wei g h th e p eo p l e’ s i n teres ti n kno wi ng wh o i s u s i n g th e co u rt s as
s o weakas t o g i v e p et it i on er t h e b en efi to f t h e d o ub t ”. Id
. at(s l i p o p . at1 3 ). Ho wev er, th e wh i s tl eb l o wer was a s eri al wh i s tl eb lo wer fi l er, an dth e Co u rt
u l t i m at el y

h el dth atth e p ub l i c’ s i n t eres ti n kno wi ng wh o was u s i n g th e Co u rtt o b ri n g s eri al wh i s t l eb l o w er cl ai m s p rev ai l ed . Id
. at(s l ip o p . at1 6 ).- 2 4 -

[* 2 4 ] A. No Cred i b l e Ri s ko f Fu tu re Eco n o m ic Harm Un l i ke t h e wh i s tl eb l o wers i n t h e cas es wh ere t h e Co u rtg ran tedan o n ym i ty , p et i t i o n er i s n o tn ow an dn ev er was em p l o y edb y an y o f t h e t arg et s . Pet i t i o n er d i d
n o tex pres s an y

i n t en tt o s eekfu tu re em

pl o ym en twi t h an y o f t h e t arg et s . Pet i t io n er d i dn o to b t ai n th e i n fo rm at i o n u n d erl y i n g th e wh is t leb l o wer cl ai m s t h ro u g h an y

co n fi d en t i al i n t ern al d el ib erat i o ns an dco m m u n icat io ns i n t h e co u rs e
o f h i s em p l o ym en t . No n e o f t h e t arg et s p ro v id es p et i t i o n er an y em p l o ym en t rel at ed b en efi t s h e co u l db e at ri s ko f l os i n g . Pet i t i o ner d i dn o t h o l dan y fi du ci ary p o s i t i on wi t h res p ectt o an y o f t h e t arg et s . Oth er th an b ei n g s o l i ci tedas a p o t en t i al cl i en t fo r t he p ro m o t edi n v es t m en t , i n wh i ch h e u lt i m at el y ch o se n o tt o i n v es t , p et i t i o n er h adn o o t h er rel at i o n s h i p t o an y o f t h e t arg et s . Pet i t i o ner arg u es th ath i s i d en t i t y s h ou l db e p ro t ect edb ecau s e wh i st l eb l o wers are g en eral ly p ercei v edn eg at i v el y , o s t raci zed , an dret al i at ed ag ai n s t . Pet it i o n er as s ert s th at “ res earch h as s h own , i n d i v i du al s , o n t he wh o l e, p ercei v e wh i st l eb lo wi n g n eg at i v el y ” an d refers t o a recen tacad em i c s tu dy t h at

“ fo un dem

p i ri cal ev i den ce t h at , i n d i v i du al s wh o rep o rt edl i es (i
. e., wh i s t l eb l o wers )
were o s t raci zedan dex cl u d edfro m g ro up s ev en b y

i n d i v i du al s wh o acth o n es t l y .” Pet i t io n er fu rt her as s ert s th at“ [t ] h is s tu dy ex pl ai n s p ri o r res earch fi n d i n g t h at wh i st l eb l o wers h av e s i g n ifi can t l y wo rs e career t raject o ri es as co m p aredt o s i m i l ar- 2 5 -

[* 2 5 ] em p lo y ees wh o d id n o ten g ag e i n wh i s t l eb l o wi n g .” Acco rd i n g t o p et i t i o n er,

“ t h ere can b e n o d o ub tth at , m eas u redi n th e ag g reg at e, wh i s t l eb l o wers ’ careers
m eas u rab l y

s u ffer aft er t h ei r wh i s t l eb l o wi n g act i v i t i es b eco m e a m at t er o f p ub l i c
reco rd .” Pet i t i o n er al s o arg u es th at“ a recen t s urv ey b y th e Fed eral J u d i ci al Cen t er fo u n d a h i g h rat e o f ret al iat io n ag ai n stco o p erat i n g wi tn es s es .” Th e Co u rth as ad dres s edb ro adan dg en eral i zedcl ai m s fo r an o n ym i t y s u ch
as p et i ti o n er’ s an dreject edth em i n Wh i s t l eb l o wer 1 41 0 6-1 0 W v . Co m m i s s i o n er, 1 3 7 T.C. 1 8 3 . Ina fo o t n o t e t h e Co u rtex p l ai n ed : “ W e d o n o t m ean t o s u g g es tth at t h i s b al an ci n g t es two u l do r s h o u l dn eces s ari ly res u l t i n an o n ym i t y

fo r al l t ax wh i st l eb l o wers i n t h i s Co u rt . Ul t i m at el y , ab s en t an y l eg i sl at iv e d i rect i ve t o t h e
co n trary , each req u es t t o p ro ceedan o n ym o us l y m us ts t an dup on i t s o wn .” Id . at 2 0 6 n .2 9 ; s ee al s o i d
. at 2 0 8 (Hal p ern , J
. , co n cu rri n g ) (“ I h av e co n cu rredi n th e
res u l t i n th i s cas e b ecau s e I t h i n kth atwe s h o u l dg i v e wh i s tl eb lo wers
co n tem p l at i n g a s ect i o n 7 6 2 3 (b )(4 ) act i o n fai r n ot i ce t h atwe wi l l n ot
au t o m at i cal l y

g ran t an o nym i t y

up o n a cl ai m

o f p o s s i b l e em

p l o ym en t d i s cri m i n at i o n .”). Al t h o u g h p et i t i o n er’ s o b s erv at i o ns reg ard i n g g en eral p ercep t i on s ab ou twh i st l eb l o wers m ay b e v al i d , h i s req u es t t o p ro ceed
an o nym o u s l y

s t an d s up o n i t s o wn . Pet i t i o n er, as th e m o van t , m u s ts etfo rt h a
s u ffi ci en t , fact -s p eci fi c b as i s fo r an on ym i ty . See Ru l e 3 4 5 (a).- 2 6 -

[* 2 6 ] Pet i t i o ner arg u es th atp ro v i d i n g p ro o f o f fu tu re h arm i s i n heren t l y
s p ecu l at i v e an dth atreq ui ri ng wh is t l eb l o wers s eek i n g t o p ro ceed an o n y m ou s l y
u n d er Ru l e 3 4 5 (a) t o i d en ti fy i n ev ery cas e co n cret e fact s o f fu tu re h arm thatwi l l
o ccu r p l aces an u n reas o nab l y h i g h b u rd eno n wh is t leb l o w ers . Pet i t i o n er’ s as s ert ed
s t an d ardu n d er Ru l e 3 4 5 (a) fo r d et erm in i n g wh et h er a wh is t l eb l o w er s h o u ld p ro ceed an o nym o u sl y

i s far m o re b u rd en s o m e t h an th e Co u rth as ap p li edi n t h e
cas es wh ere i th as p erm i t t eda wh i s t l eb l o wer t o p ro ceedan o n ym o u sl y o n th e b as is
o f, am on g o t h er t hi n g s , ri s ko f fu tu re eco n o m i c h arm . See Wh i s t l eb l o w er 1 4 1 0 6
- 1 0 W v . Co m m i s s i o n er, 1 3 7 T.C. at2 0 3 -2 0 4 (co n s i d eri n g n o to n l y th e wh i st l eb l o wer’ s cu rren tem p l o y m en tb u tal so fu tu re em

p l o y ab i li t y ). Th e Co u rt h as ackn o wl ed g ed th at“ fears o f s uch h arm b efal l i n g a co n fi den ti al i n fo rm an tare
reas on ab l e al t h o u g h n eces s ari l y d i ffi cu l t t o p ro v e.” Id . at 2 0 3 . Nev ert h el es s , each req u es tt o p ro ceed an o n ym o u s l y s t an d s up o n i t s o wn , s ee i d . at2 0 6 n .2 9 , an d p et i t i o n er m

u s tp ro vi d e s o m e fact u al b as i s s u ffi ci en tan ds p eci fi c en o u g h t o al l o w t h e Co u rtt o d et erm in e wh et h er t h e s ev eri t y o f t he as s ert edri s ko f h arm am o u n t s t o
m o re th an m ere em

b arras sm en to r an n o y an ce an do u t w ei g h s t h e s o ci et al i n t eres t
o f t h e p ub l i c’ s ri g h tt o kno w wh o i s u s i n g t h e Co u rt . Oth erwi s e t he g ran to f
an o nym i t y

wo u l d b e au t o m at i c i n ev ery wh i s t l eb lo wer cas e.- 2 7 -

[* 2 7 ] Pet i t i o ner arg u es th atth e s p eci fi c eco n o m i c h arm h e h as al read y

s u ffered fo l l o w i n g h i s d i scl os u res ab o u th i s wh i s t l eb lo wer cl ai m s d em o n s t rat es th ath e
co u ldreas o n ab l y

s u ffer fu tu re eco no m i c h arm . Pet i t io n er b l am es h i s d i s cl o s u res ab o uth i s wh is t l eb l o wer cl ai m s fo r t h e l acko f i n t eres tb y th e p ri n ci p al s an dCFO i n h i s trad i n g s t rat eg y . Ho w ev er, t h e Co u rti s n o tco n v i n ced t h ata co n n ect i o n
ex i s t s, es p eci al l y

co n s i d eri ng th e co n t ex t i n wh i ch p et i t i o ner m ad e t h e v o l u n t ary d i s cl os u res ab ou th is wh i s t l eb l o wer cl ai m s . Pet i t i o ner t es t i fi edth at , i n co n t ras tt o th e fi el d o f trad i n g wh ere d i s cl o s u re
was m an d at o ry , th e h ed g e fu n dl awy ers h e h ads p o k en t o “ fel tth atfu l l d is cl o s u re
was b es t p ract i ce”. Acco rd i n g t o p et i t i on er, h e was ad v i s edth atd i s cl o s u re o f h is wh i st l eb l o wer cl ai m s was a m at eri al d i s cl os u re i f, as a l eg al m at t er, i ti n t erfered wi t h h is ab i l i ty

t o p erfo rm

h i s d ay -t o-d ay

em p l o ym en tdu t i es o r i f i tl edt o a
co n fl i cto f i n teres twi t h a cu rren tcl i en t. Ho wev er, p et i t i o n er’ s t es ti m o n y s u g g es t s t h ati n m ak i n g t h e d i s cl o s ures h e was m o t i v at edb y a d es i re t o b e s een as an

“ up s t an d er” rat h er t h an b y a n eedt o m ak e a m at eri al d is cl o s u re an d t h atb y d i s cl os i n g h e s t oo dt o en han ce, n o td i s cred it , h i s rep u t at i on . Fo r i n st an ce, p et i t i o n er t es t i fi ed : So wh en I m ad e t h es e co n v ers at i o n s , p artan dp arcel t o th e o u t l oo ko n th e p ro fes s i o n al th atI’ m acro ss th e t ab l e i s are t h ey an up s t an d er, h av e they

d o n e s o m et h i n g i n th e m ark etp l ace t h at- 2 8 -

d en o t es h i g hl y

et h i cal b eh av i o r. An d * * * [t h e p ri n ci pal o f t h e s eco nds erv i ce p ro v i d er] i s fam o u s fo r t h at . He wo n award s fo r i t . An d* * * [t h e p ri n ci p al o f the p ri v at e eq u i ty real es tat e fi rm ] i s s i m i l arl y si tu at edas s o m eo n e wh o h as a fan t as ti c rep u tat i o n . Pet i t io n er t es t i fi edth ati n m ak i n g th e wh i st leb l o wer cl ai m s h e b el i ev edh e was al s o b ei n g an “ up s t an d er”. Co n traryt o p et i t i on er’ s t es t i m o n y , th e em ai l fro m th e p ri n ci pal o f t h e p ri v at e eq u i ty

real es t at e fi rm

i n d i cat es th atth e p ri n ci p al d ecl in edt o i n v es ti n h i s t rad i ng s t rat eg y fo r a b u si n es s p u rp os e an d t h ath e was i nt ri g u ed , n o tal i en at ed , b y t h e wh i s tl eb l o w er cl ai m s . Al t h o u g h h e at t ri bu t es t h e l acko f i n t eres tb y th es e i n v es t o rs i n h i s trad i ng s t rat eg y t o h i s s t atu s as a wh is t leb l o w er, p et i t i o n er was g en eral l y u n ab l e t o s ecu re o t h er i n v es t o rs t o fu n dh i s trad i n g s t rat eg y ev enwi t h o u t d i s cl os i n g h i s s t atu s as a wh i s t l eb lo wer. M o reo v er, p et i t i o n er h as ab an d o n edh i s p rev i o u s career an d i s p u rs u i n g a
n ew o n e. Pet i ti o n er t es t i fi edth ath i s i n v es t m en ten ti t y h as b een d ereg is tered an d i s n o l o n g er a g o i n g co n cern an dth ath e d o es n oti nt en d t o ret u rn t o h i s p ri o r
career as a t rad er. In s t ead , p et it i o n er p l an s t o b e a co n s u l t an tan d ad v i s er o n p ri v at e weal th real es t at e aft er g radu at i ng fro m h i s cu rren tm as t er’ s d eg ree p ro g ram . Pet i t i on er t es t i fi edth atas a co ns u lt an tan d ad vi s er h e wo u ldh av e n o
n eed to d i s cl o s e h is wh i s t leb l o wer cl ai m s b ecau s e h e wo u l d h av e n o fi du ci ary [* 2 8 ]- 2 9 -

[* 2 9 ] res p o n s i b i l it y

t o d o s o . Pet i t i o n er al s o t es t i fi edth at i f h e i s b ei n g p ai dfo r
s erv i ces as an ad v i s er, a du e d i l i g en ce i n qu i ry , wh ich wo u ldreq u i re d i s cl o s u re o f h i s wh i s t l eb l o wer cl ai m s, wo u l dn o tb e n eed edb ecau se h e wo u l d n o tb e ad v i s i n g
o n fi n an ci al m at t ers . Pet i t i o ner h as n o t i den t i fi edan y s p eci fi c way i n wh i ch d i s cl os u re o f h i s i d en t i t y

i n th is cas e wo u l daffect ei t h er h is s t an d i n g as a g radu at e
s tud en to r h i s fu tu re career as an ad vi s er an dco n s u l t an ti n p ri v at e weal t h real
es t at e. B. No Cred i b l e Ri s ko f Ph y s ical Harm Al t h ou g h p et i t i o n er rel i es p ri m ari l y o n th e eco n o m ic ri s kfact o r, h e al s o
as s ert ed t h ath e faces a ri sko f p h y s i cal h arm . Ho w ev er, p et i t i o n er h as n o t d em o n s t rat edan y

cred i b l e ri s ko f p h y s i cal h arm t o s up p ortth e v ag u e an dg en eral al l eg at i o n s i n h i s m o ti o n an dd ecl arat i on . Wh en as k edt o ex p l ai n th e al l eg at i o n o f p o t en t i al p h y s i cal h arm

o n t h e b as i s o f “ v ari o u s v erb al co nfro n t at i o n s o r t h reat s d i rect l y fro m k ey cri m i n al s o v er t h e y ears i n th i s m as s i v e/ l en g t h y cri m i n al cas e”, p et i t i o n er t es t i fi edth ath e “ h ada t wo m i n ut e b ack -an d -fo rt h ” wi t h an i nd i v i du al rel at ed t o o n e o f t h e t arg et s du ri n g th e t i m e wh en h e was co n s i deri n g wh eth er t o i n v es ti n th e p ro m o t edi n v es tm en t . He al s o t es t i fi edth at wh en h e d eci d edn o tt o i n v es tan o t h er i n d i vi du al rel at edt o o ne o f t he t arg et s as k ed h i m t o reco ns i d er; h e
s ai dn o , an d h i s refu s al was fo ll o wedb y “ s o m e p ret t y

co l o rfu l l an g u ag e”.- 3 0 -

[* 3 0 ] Pet i t i o n er ack n o wl ed g edth ath e was n o tco nfro n t edv erb al l y o r p h y s i cal ly b y an y o ne rel at edt o t he t arg et s aft er h e d eci dedn o ten g ag e i n t h e p ro p os ed i n v es t m en twi t h t h e t arg et s . Al t h o u g h h e t es t i fi edth at h i s v eh i cl e was t o t al edat
s o m e p o i n t , p et i ti on er h adn o i d ea h o w i th ap p en ed o r wh et h er t h i s was l i n k edt o
an y o f t h e t arg et s. Th e Co u rtu n d ers t an d s thatp et i t io n er m ay s u ffer s o m e em

b arras s m en to r
an n oy an ce i f t he m o ti o n i s d en i ed , b u th e h as n o tp ro v i dedth e Co u rtwi t h a
s u ffi ci en t , fact -s p eci fi c ju s t ifi cat i o n fo r p ro ceed i n g an o nym o u s l y . III. So ci et al In t eres ti n Op en Co u rt ro o m s Pet i t i o ner’ s weakfact -s p eci fi c b as is fo r an o n ym i t y m us tb e b al an cedag ai n s t t h e co m pet i n g s o ci et al i nt eres t . See Wh i s t l eb l o wer 1 2 56 8 -1 6 W v . Co m m i ss i o n er, 1 4 8 T.C. at_

_ (s l ip o p . at 4 -5 ); Wh i s t l eb lo wer 1 4 1 0 6 -1 0Wv . Co m m i s s i o n er, 1 3 7 T.C. at2 0 5 . Th e Co u rtm u s tb al an ce t h e co m

pet i n g s o ci al i n t eres t o f p ro t ect i n g t h e i d en t i t y

o f a wh i s t l eb l ower as a co n fi den t i al i n fo rm an twi t h t h e s o ci et al i n t eres to f t h e p ub l i c’ s ri g htt o kn o w wh o i s u s in g th e Co u rt . See Wh i s t leb l o wer 1 2 5 6 8 -1 6 W

v . Co m m i s s i o n er, 1 4 8 T.C. at(s l i p o p . at4 -5 ); Wh i s t l eb l o w er 1 4 1 0 6 -1 0 W

v . Co m m i s s i o n er, 1 3 7 T.C. at2 0 5
. Th ere i s g en eral l y

a p res u m p t i o n o f o p en ju d i ci al p ro ceed i n g s an dp ub l i c
acces s t o co u rtreco rd s . See Wh i s t l eb l o wer 1 4 1 0 6 -1 0 W v . Co m m i s s i o n er, 1 3 7- 3 1 -

[* 3 1 ] T.C. at1 8 9 -1 9 0 (an dcas es ci t edth ereat ); s ee al so s ec. 7 4 5 8 (p ro v i d i n g th at h eari n g s b efo re t he Co u rts h al l b e o p en t o the p ubl i c); s ec. 7 4 61 (a) (p ro v i d i n g th at al l rep ort s o f an dev id en ce b efo re t h e Co u rts h al l b e p ub l i c reco rd s o p en t o th e i n s p ect i on o f t h e p ub l i c). Ho wev er, t h e Co u rt i s au t h o ri zedu n d er s ect io n 7 4 6 1 (b )(1 ) t o m ak e an y p ro v i s io n n eces s ary t o p rev en t th e d i s cl o s u re o f trad e
s ecret s o r o t h er co n fi d en t i al i n fo rm at io n , i n cl u d i ng a p ro vi s i o n th atan y d o cu m en t
o r i n fo rm at i o n p l acedu n d er s eal b e o pen edo n l y as d i rect edb y

th e Co u rt . Ru l e 3 4 5 co n cern s i t s el f wi t h p ri v acy p ro tect io ns fo r fi li n g wh i st l eb l o wer act i on s i n th is Co u rt . Pet i t i o ner arg u es th atth e p ub li c’ s i n t eres ti n kn o wi n g h i s i d en t i t y i s
n eg li g i b l e. Pet i t i o n er fu rt h er arg u es th atth e ri g h tt o o pen ju d i ci al p ro ceed i n g s i s
n o tab so l u t e an dd o es n o tap p l y t o d o cu m en t s th ath av e t rad i t io n al l y b een k ep t
s ecret fo r i m

p o rt an tp o l i cy

reas o n s , s u ch as wh i s t l eb l ower cl ai m s atth e ad m i n is t rat i v e l ev el . Pet i t i o n er g en eral l y arg u es th at“ [t ] h e p ub li c d o es n o th av e
as s t ro ng a ri g h tt o kno w wh o co n fi d en t i al i n fo rm an t s an dwh i st l eb l o wers are, as t h ey d o o rd i n ary

l i t i g an t s ” an dth at“p o t en t i al wh i s t l eb l o wer p et i t io n ers m u s tb e
as s u redth at t h ey

wi l l b e reas o n ab l y

p ro t ect edfro m

th e h arm s th atco u ldres u l t fro m th ei r p art ici p at i on i n th e wh i s t l eb l o wer p ro g ram b ei n g m ad e p ub li c.”- 3 2 -

[* 3 2 ] Ho wev er, p et i ti o n er’ s arg u m en t s i g n o re t h e p res u m pt i o n th atp ro ceed i n g s b efo re t h i s Co u rtare o p en t o th e p ub l i c. See s ec. 7 4 5 8 . To o verco m e t hat p res u m p t i o n p et i t io n er m

u s ts etfo rt h a s u ffi ci en t , fact -s p eci fi c b as i s fo r
an o nym i t y , wh i ch h e h as n otd o n e. Th e Co u rtreco g ni zes t hatth e Wh i s t l eb l o wer Offi ce h as th u s far k ep t p et i t i o ner’ s i d en t i t y co n fi d en t i al , b u t p et it i on er h as m ad e
v o l u n t ary d i scl o s ures i n t h e p as tm o ti v at ed , atl eas t i n p art , b y h i s d es i re t o b e s een
as an “ up s t an d er”. Pet i t i o ner arg u es th atth e p ub li c’ s i n t eres ti n kn o wi n g h i s i d en t i t y i s weak b ecau s e th i s cas e i s s t i l l i n th e earl y s t ag es o f t he p ro ceed in g s an d n o fact u al o r l eg al d i s p u t es h av e b een rai s ed . InWh is tl eb l o wer 1 4 1 0 6-1 0 W v . Co m m i s s i o n er, 1 3 7 T.C. at2 05 , th e Co u rt , i n wei gh i n g th e s o ci et al i n t eres t s ats t ak e, fo u n dth at t h e p ubl i c’ s i n t eres ti n kn owi n g th e wh i s tl eb l o wer’ s i den t i t y was rel at i v el y

weak b ecau s e i th adju s t hel dth atthe Co m m i ss i o n er was en ti t l ed t o s u m m ary ju d g m en t
o n a t h res h o l d l eg al i s s u e t hatd i dn o t d ep en do n th e wh is t leb l o wer’ s i d en ti t y . Pet i t i o ner’ s cas e i s d is t i ng u i s h ab l e fro m t he wh i s t l eb lo wer i n Wh i s t l eb l o wer 1 4 1 0 6 -1 0 W . Th i s cas e i s n o tb efo re t h e Co u rto n a m ot i o n fo r
s u m m ary ju d g m en to r o t h er d i sp o s i t i ve m o t i o n. As the Co u rt n o t ed i n Wh i s t l eb l o wer 1 2 5 6 8 -1 6 W v . Co m m is s io n er, 1 4 8 T.C. at(s l i p . o p . at5 -6 ),

“ [t ] h e i m p l i cat i o n , o f co u rs e i s th at , i f we h adn o td i s p o s edo f t h e act i o n atth e- 3 3 -

[* 3 3 ] b eg i n n i n g o f t h e cas e o n Co m m i s s i o n er’ s m o ti o n fo r s u m m ary ju d g m en t , th e
s t ren gt h o f t h e p ub l i c’ s i n t eres tm i g h t , as th e cas e p ro g res s ed , h av e ap p eared
s t ro n g er.” M o re i m

p o rt an t ly , h o wev er, i n Wh is tl eb l o wer 1 4 1 0 6 -1 0 W v . Co m m i s s i o n er, 1 3 7 T.C. at2 0 4, t h e Co u rtfo u n dth atth e wh i s t l eb l o wer h ad
s u ffi ci en t l y

d em o n st rat ed a ri s ko f h arm s ev ere en o ug h t o ju s t ify

g ran t i n g th e wh i st l eb l o wer an o nym i t y . Pet i t i o n er h as n o ts u ffi ci en t l y d em o n s t rat ed a ri s ko f h arm h ere t o o v erco m e t h e p res u m p t i o n o f o p en p ro ceed i n g s an dt o wei g h i n fav o r
o f g ran t i n g an o n ym i ty . Pet i t i o ner s eek s t o d i s t i n g u i sh Wh i s t l eb l o w er 1 4 3 7 7 -1 6 W fro m h i s cas e b y arg u i n g th ath e i s n o ta s eri al wh i s t leb l o wer fi l er. Ho wev er, l i k e th e wh i s t l eb l o wer i n that cas e, p et i t i o ner’ s wh i s t leb l o w er cl ai m s are b as edo n p ub l i cl y o b tai n ed i n fo rm at i o n --i n fo rm at i o n h e o bt ai n edwh i le b ei n g s o u g h to u t as a p o t en t i al i n v es t o r b y

th e t arg et s an d on p ub l i c i n fo rm at io n ab o u t th e cri m i n al p ro ceed i n g ag ai n s tan i n d i v idu al as so ci at edwi t h o n e o r m ore o f t h e t arg et s . Pet i t i on er’ s wh i st l eb l o wer cl ai m s are n o tb as edo n i n fo rm at io n h e o b t ai n ed as an em pl o y ee o r i n a fi du ci ary

cap aci t y . Th e p ub l i c h as an i n t eres ti n kn o wi n g wh o i s u s i n g p ub l i c i n fo rm at i o n i n l i t i g at i n g a cas e b efo re th e Co u rt , es p eci al l y i n a cas e l ik e t h i s wh ere p et i t i o n er’ s weakfact -s p eci fi c b as i s fo r an o n ym i t y d o es n o to u t wei g h th e p res u m p t i o n o f o pen p ro ceed i n g s .- 3 4 - Co n cl u s io n Onth e b as is o f th e fact s b efo re t h e Co u rt , m in d fu l o f o u r l eg al s y st em ’ s g en eral s o l i ci tud e fo r co nfi den t i al i n fo rm an t s , th e Co u rtfi nd s t hatp et i ti o n er’ s weakfact -s p eci fi c b as i s fo r an on ym i t y d o es n o to u t wei gh th e p ub l i c’ s ri g h tt o kn o w wh o i s u s in g t h e Co u rt . Acco rd i ng l y , th e Co u rtwi l l d en y p et i t io n er’ s m o t i o n . Anap p ro p ri at e o rd er wi ll b e i s s u ed
. [* 3 4 ]