CORRECTION: UK Lawyer sues, seeks whistleblower status in lawsuit after reporting alleged fraud

Krista Bates van Winkelhof was a former partner Clyde & Co. LLP in Tanzania when she got herself fired after reporting fraudulent activities involving an African lawyerin association of her employer, Bloomberg said. After her termination in 2011, van Winkelhof sued the law firm, of which a decision following a hearing beginning today at the UK Supreme Court could be a precedent to the current whistleblower legislation.

Van Winkelhof's attorney, Joanna Blackburn, commented, "This case isn't just about lawyers. It's about accountants, hedge funds and a host of other professionals in jobs where whistle-blowing is absolutely vital."

Bloomberg said the country has been cracking down on corruption activities overseas by British companies and have given prosecutors more power to file bribery and fraud-related charges against them. Van Winkelhof had said that the senior partner of Ako Law, an associate firm of Clyde & Co based in Tanzania, has engaged in bribery and money laundering activities, and is seeking whistleblower status normally provided only to salaried workers.

The 35-office London-based law firm, on the other hand, fears that the case will threaten the viability of limited-liability partnerships like them in the financial world, and that it would open the floodgates to future lawsuits over incidents that occur as far back as the year 1998.

In a statement, Clyde & Co has said, "Such claims would cost partnerships significant amounts, rendering some insolvent, were compensation to be payable to those privileged enough to attain partnership."

The lawsuit, which will be heard in the UK Supreme Court, will not argue amount van Winkelhof's allegations, but a request to allow the coverage of the whistleblower law to professionals. Bloomberg said that should the High Court sides with her, van Winkelhof could seek damages in an employment tribunal.

Chief executive officer Cathy James of the Whistle-blowing charity Public Concern at Work said, "The nature of the workplace has changed. The ability of all members of the workforce, including LLP members to speak up about dangers or wrongdoing, without fear of reprisal is important to protect society."

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Clyde & Co. LLP bribery and money laundering scandal, UK Supreme Court, UK Public Concern at Work

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