[HN Gopher] How to Make Millions as a Professional Whistleblower
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       How to Make Millions as a Professional Whistleblower
        
       Author : mooreds
       Score  : 95 points
       Date   : 2024-09-15 16:53 UTC (6 hours ago)
        
 (HTM) web link (www.gq.com)
 (TXT) w3m dump (www.gq.com)
        
       | IIAOPSW wrote:
       | That's cool as hell, but also it seems weird that his biggest
       | fear is merely being exposed and not able to do it no more.
       | 
       | You'd think he'd maybe be afraid of a more...extralegal ending
       | giving the wake of wealthy ruthless people he's Richard Overing
        
         | alwa wrote:
         | It does seem like an awful lot of risk to take on personally,
         | without institutional cover. Mess with a cop and you'll feel
         | the full weight of the justice system, mess with this guy
         | and... I guess he knows a lot of lawyers?
         | 
         | I feel like there was a lot left unsaid in this account, and
         | rightfully so. There's a conspicuous void in the shape of his
         | recording techniques (or lack thereof), for example; ditto the
         | specifics of the types of malfeasance he goes after.
         | 
         | And while I'm all for maintaining honest norms, it did sound a
         | little bit like he was trying actively to bait his mark into
         | producing fraudulent misrepresentations. That feels a little
         | different from the conventional "whistleblower" notion, of a
         | cog in the machine noticing something wrong and standing up for
         | what's right. Something a little closer to vigilantism.
         | 
         | But who knows. It's cool that he was willing even to share this
         | much visibility.
        
           | unyttigfjelltol wrote:
           | > it did sound a little bit like he was trying actively to
           | bait his mark into producing fraudulent misrepresentations
           | 
           | Being a whistleblower only works well if you uncover a scheme
           | that the target already has deployed to victimize other
           | people (or the government). Entrapment isn't an effective
           | tactic.
        
           | rectang wrote:
           | The vigilantism aspect is a guilty pleasure when reading this
           | -- with the IRS being deliberately defunded to facilitate tax
           | cheating I read about this guy and hear in my head "this is
           | the hero we need".
        
             | Spooky23 wrote:
             | The IRS vilification is gross.
             | 
             | I had a relative who was a revenue agent with a couple of
             | highly specialized areas of expertise. When he started in
             | the mid-80s, his unit had about 250 agents nationally. When
             | he retired circa 2010, there was 4.
             | 
             | He retired earlier than he wanted because the travel was
             | difficult and he was developing some health issues. The
             | cases they prosecuted were people cheating society out of
             | hundreds of millions, or in one case, billions of taxes. He
             | characterized the scope of what wasn't even _looked at_ as
             | 15k cases annually where at least $10M of taxes were notn
             | paid. They didn't even bother to think about anything less
             | than $100M.
             | 
             | We should be vilifying the people doing this. Some of these
             | crooks avoid taxes equivalent to 10,000 or more well paid
             | professional like myself and my colleagues. You also have
             | issues with some cases where the tradition of allowing
             | Senators to nominate US Attorneys and hyper-political
             | judges means that certain crimes are effectively not crimes
             | in certain districts.
        
               | photonthug wrote:
               | You explained yourself the same problem that you're
               | trying to dismiss. The vilification will continue until
               | the emphasis is placed where it needs to be, ie going
               | after big fish instead of little ones, regardless of
               | which fish are easy targets and easy wins for enforcement
               | quotas, and regardless of whether the enforcement team is
               | 4 people or 4000.
        
               | rectang wrote:
               | I'm confused. It seems like "They didn't even bother to
               | think about anything less than $100M" describes "going
               | after big fish instead of little ones".
        
               | photonthug wrote:
               | Yeah but then it's explained why catching the big fish is
               | hard, and a plea for sympathy due to staff cuts. That
               | won't work until/unless tax enforcement overall shifts
               | from disproportionately affecting the poor to
               | disproportionately affecting the rich, regardless of some
               | special team of four people that targets big fish.
               | 
               | The situation that we actually have is like if a one
               | stoplight town is setting a speed trap because they need
               | revenue.. but they target only old broken minivans going
               | 5mph over, because they know corporate trucks and private
               | red sports cars going 20 over the limit are more likely
               | to have lawyers that buck the speeding ticket, and cost
               | the town revenue instead of collecting it. Is adding more
               | cops to pull over more old minivans really going to help
               | the town buy a public park, or stop sports cars from
               | speeding? It's not only unfair, but also completely
               | ineffective.
               | 
               | Staffing/funding is always going to be a bullshit
               | complaint because structurally, enforcement quotas and
               | complex compliance requirements are always going to tend
               | to create a preference for bureaucracies to punch down at
               | soft targets. Similar to how militarizing police doesn't
               | actually help fix problems with law enforcement, adding
               | additional "support" (ie weapons) for other institutions
               | that have fundamentally broken politics/policies is not a
               | good idea.
        
               | Spooky23 wrote:
               | You read it wrong and frankly don't get it. With the
               | limited resources they have, it only makes sense to
               | pursue the most egregious offenders for complex crimes.
               | 
               | Enforcement is like fixing shipped code - expensive and
               | difficult. Effective enforcement shapes people's risk
               | assessment and behavior. You need to work the middle of
               | the bell curve so that people believe there's risk.
               | 
               | It's funny... the people who push the "starve the beast"
               | agenda want to "back the blue", as long as they are
               | looking in the direction they prefer.
        
               | photonthug wrote:
               | > With the limited resources they have, it only makes
               | sense to pursue the most egregious offenders for complex
               | crimes.
               | 
               | With few resources the wrong people are targeted and I
               | think that's well established
               | 
               | https://www.forbes.com/sites/eriksherman/2023/01/29/the-
               | irs-...
               | 
               | With more resources, there's every reason to believe that
               | more of the wrong people will be targeted. Why would you
               | believe otherwise?
        
               | jonathanyc wrote:
               | > They didn't even bother to think about anything less
               | than $100M.
               | 
               | I got a letter from the IRS for ~$300. I'm pretty sure
               | the first letter was sent by some automated system of
               | theirs with a bug, and the subsequent letters were some
               | IRS employee trying to cover their ass.
               | 
               | Here's the sequence of events.
               | 
               | - IRS: You misreported your gain on this one specific
               | trade.
               | 
               | - Me: I checked and the trade is listed with the amounts
               | you claim on the broker's 1099-B that I sent to you. Here
               | are the 1099-Bs with the transaction highlighted.
               | 
               | - IRS: We've already seen your 1099-Bs. Please prove to
               | us the amounts sum to the aggregate.
               | 
               | - Me: Here is a spreadsheet showing all the transactions
               | and the sums.
               | 
               | - IRS: OK OK. What about this other totally unrelated
               | transaction then that is now being mentioned for the
               | first time?
               | 
               | With every single reply, the IRS took months to respond.
               | Each reply was literally just one sentence. They sent me
               | periodic form letters just saying "we're working on a
               | reply" because apparently there's some law saying they
               | are required to reply within some number of days. The
               | phone number they provided for me to call was literally
               | just an automated system.
               | 
               | The unrelated transaction was for a huge amount on some
               | stock I had not traded at all. At this point a friend
               | referred me to a tax lawyer who told me to just pay the
               | $300 so the IRS would stop harassing me. Paraphrasing the
               | lawyer: "my rate is a lot higher than $300."
               | 
               | This incident turned me against the IRS. I'm sorry about
               | your relative but I have no hesitation vilifying them.
               | 
               | In contrast, the CA DMV once sent me a letter asking for
               | $300 because a vehicle's old registration hadn't been
               | cancelled. It was a hassle but every time I called in I
               | got a human being, and on the last call the collections
               | person saw the error in their database and fixed it on
               | the spot. Frustrating but not malicious. The IRS on the
               | other hand...
        
               | Spooky23 wrote:
               | You're an easy mark to hit a quota. Thats unjust.
               | 
               | I'm not a defender of the IRS. I've worked for my share
               | of large corporate and government bureaucracy. They are
               | dumb organizations if you design them to be. The folks
               | who have controlled the purse at the committee level in
               | congress want that org to be dumb.
               | 
               | I've consulted for a few DMVs. Fundamentally, they are
               | tax agencies. They sell stickers and plates. They are
               | unique, however, as they are one of the few state level
               | organizations that directly interact with the entirety of
               | the public. They often do a mediocre job, but they see
               | themselves as customer service orgs and make effort to
               | give you a positive experience. Most states have
               | governance structures where individual legislators cannot
               | micromanage agency functions as well.
        
               | zie wrote:
               | The IRS has been chronically under-funded for decades.
               | They probably are not trying to be malicious, they are
               | just over-worked and can't keep up. Their software system
               | is many, many decades old and their staffing shortages
               | are chronic.
               | 
               | Congress just recently decide to throw the IRS a bone and
               | let them hire a few more people, but they are still
               | chronically under-staffed.
               | 
               | Every time I manage to find a real human at the IRS, they
               | have always been awesome to deal with. If you want to get
               | a real human, the best way is to go to your local
               | congress critter and have them contact the IRS _for you_.
               | If more people do this, it also helps incentivizes
               | Congress to eventually properly staff the IRS.....
               | hopefully.
        
       | fracus wrote:
       | This isn't how I would define whistleblowing. This is more like
       | mercenary stings.
        
       | Animats wrote:
       | _" If he sees people posing on Instagram with yachts, say, or
       | cars that cost hundreds of thousands of dollars, while also
       | trying to raise money, he says, bells immediately go off." ...
       | It's rare, Overum says, that you'll go long without hearing from
       | a target that turns out to be running a scam. "They always need
       | money," he says. "They're always running short on cash."_
       | 
       | Ah. That's a good method of target selection.
        
       | neilv wrote:
       | A lot of the detail in this story seems tailor-made (ha) for the
       | upscale fashion image that GQ sells to its advertising targets.
        
         | anonymousDan wrote:
         | Yeah I wonder how much they get paid for product placement
         | relating to the watch brands mentioned.
        
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       (page generated 2024-09-15 23:01 UTC)