Prosperity for US Foundation Calls for Urgent Reform to Expose the Industry Behind False Allegations

[Washington, DC] [July 31, 2025] – As the nation recognized National Whistleblower Day on July 30, a day originally intended to honor truth-tellers who expose corruption and fraud, the Prosperity for US Foundation is calling attention to a growing and dangerous abuse of this noble ideal. Increasingly, whistleblowing has morphed from a courageous act of integrity into an industrialized practice driven by unearned self-enrichment motives, legal opportunism, and coordinated attacks that devastate innocent individuals, companies, and communities.

“Whistleblowing should be about integrity, not industry,” said Bob Carlstrom, Executive Director of the Prosperity for US Foundation. “We are witnessing the rise of a cabal of professional whistleblowers, prosecutors, and even venture capitalists who treat whistleblower cases like financial instruments. They destroy reputations, livelihoods, and entire businesses, not to protect the public, but to enrich themselves.”

In recent years, a handful of so-called "professional whistleblowers" have filed dozens or even hundreds of cases under the False Claims Act, collecting massive payouts in settlements and judgments. Individuals have built careers, and fortunes, on a system increasingly incentivizing opportunism over justice.

The whistleblower issues escalated significantly under the Biden Administration which is why the Trump Administration is focusing more intently at rolling back the weaponization of the Department of Justice.

These cases often proceed under sealed indictments, leaving targeted companies unable to defend themselves in public as their reputations are destroyed. In one recent case, a motion to dismiss based on a whistleblower’s breach of seal was followed by an indictment just weeks later, raising alarming questions about retaliation, collusion, and a breakdown in prosecutorial impartiality.

“Prosecutors should not be partnering with those looking to exploit the system,” said Carlstrom. “When the Department of Justice is coordinating with whistleblowers who write books mid-litigation and breach court orders, that’s not accountability, it’s corruption of the system itself.”

The costs are staggering as employees lose jobs, patients lose access to services, and companies collapse, not because of proven wrongdoing, but due to public shaming, legal overreach, and the reputational death sentence of being labeled a fraudster, often without trial.

On this National Whistleblower Day, Prosperity for US Foundation is calling for:

• Independent oversight of whistleblower claims to prevent abuse.

• Legal accountability for whistleblowers who breach court seals or enrich themselves in an unearned way from premature disclosure.

• Reform of the False Claims Act to distinguish good-faith reporting from opportunistic litigation.

• Transparency in whistleblower-prosecutor relationships, especially when personal or financial incentives are at play.

“America needs real whistleblowers and those who act in the public interest, not for personal gain,” said Carlstrom. “But we must also start blowing the whistle on those who’ve hijacked the system. When justice becomes a racket, the consequences are catastrophic for businesses, workers, and the very idea of due process.”

The Prosperity for US Foundation’s recent efforts at the 2025 American Legislative Exchange Council (ALEC) Annual Meeting have further amplified its mission to promote economic stability and accountability. The Foundation successfully recruited dozens of state legislators to sponsor four key constitutional amendments aimed at curbing runaway property taxes, protecting property rights, and requiring voter approval for new taxes, debt, or excessive spending. These amendments, inspired by proven models like California’s Prop 13, Colorado’s Taxpayer Bill of Rights, and Switzerland’s Debt Brake, are designed to empower voters and ensure fiscal discipline. 

“Our momentum at ALEC shows that state lawmakers are ready to join the people in demanding accountability from government at all levels,” Carlstrom continued.

Additionally, the Foundation has called on influential figures like Elon Musk to support its citizen-led initiative to place these amendments on 2026 ballots in multiple states. By leveraging Musk’s platform and the Foundation’s grassroots strategy, the campaign aims to bypass Washington’s dysfunction and give voters direct control over fiscal policy. 

“This is about empowering the people to stop the debt spiral and hold elected officials accountable,” said Carlstrom. “With these amendments and advocacy, we’re building a movement for lasting prosperity.”

Please visit: www.ProsperityForUS.Foundation

About Prosperity 4 US Foundation

Founded in 2025, Prosperity for US Foundation is a nonprofit organization dedicated to empowering individuals and communities in the U.S. and globally to achieve economic stability and security. In the United States, the organization champions responsible government spending aligned with voter voices and family incomes, ensuring financial well-being for American families.

###

To schedule an interview with a Prosperity for US Foundation spokesperson, please contact Dan Rene at 202-329-8357 or dan@danrene.com

CONTACT

Dan Rene

202-329-8357 or dan@danrene.com