Consumer Fraud

Whistleblower’s immunity in FTC case being debated by the House Oversight Commitee

osha whistle Whistleblowers immunity in FTC case being debated by the House Oversight CommiteeThe immunity of a potential whistleblower is currently under debate by the chairman and top Democrat of the House Oversight Committee.

Chairman Darrell Issa (R-Calif.) claims that Richard Wallace, a former employee of Tiversa, has become a whistleblower against the cybersecurity company by exposing details of its efforts to shake down businesses for contracts or report them to the Federal Trade Commission (FTC).

Darrell also says that Democrats on the House Oversight Committee have been “too afraid” to consider Wallace’s request for immunity. While ranking member Elijah Cummings (D-Md.) has mentioned that Wallace has a criminal history, the information has yet to be confirmed.

“Generally, I believe the committee should grant immunity to witnesses who have admitted to engaging in criminal conduct only in rare circumstances when those witnesses provide concrete evidence of criminal activities by others,” Cummings said. “Although we remain open to considering immunity should additional evidence emerge, we cannot responsibly support immunity at this time.”

Wallace has also opted to provide a testimony for the continuing fight between LabMD and the FTC. LabMD, a cancer screening company, was accused by the FTC of not protecting its customer’s personal information effectively.

According to the FTC, in 2008, Tiversa alerted LabMD to its digital security vulnerabilities and offered its services to remedy the issue. However, when LabMD refused Tiversa’s help with its data security problems, the company turned around and reported its findings to the FTC.

“If the assertion that he made are true, the FTC has been misled and this committee has been misled on multiple occasions,” Issa said.

The Hill