Choosing to come forward with evidence that an individual or business may be committing fraud against the government is a brave and honorable act. Anyone who files a whistleblower lawsuit (also called a qui tam lawsuit) under the False Claims Act is playing a pivotal role in the detection, investigation and prosecution of fraud against the government.
It has been estimated that up to 10 percent of government spending is wasted due to fraud and abuse. The federal False Claims Act, which dates back to Civil War profiteering, authorizes private persons to sue on behalf of the government to recover money stolen by fraud and abuse. The FCA also offers whistleblower protections to ensure that individuals who have the courage to bring fraud allegations to the government’s attention cannot be retaliated against by their employer.
A whistleblower may receive up to 25 percent of any money that the government recovers as a result of his or her qui tam lawsuit. From January 2009 through the end of fiscal year 2016, the Justice Department recovered nearly $24 billion in settlements and judgments stemming from whistleblower lawsuits. During that same time period, whistleblowers were given over $4 billion in whistleblower rewards.
Qui tam lawsuits can be brought against any organization, even government entities, that violate a law or regulation. Whistleblower cases are frequently filed against healthcare providers who submit false claims to Medicare and Medicaid, including pharmaceutical companies that promote and market their drugs deceptively or for unapproved “off label” uses. Other examples of whistleblower lawsuits include claims against defense contractors that cheat the government by overcharging or providing defective goods or services to the Department of Defense, or financial institutions that provide misrepresentations to investors in the name of profit.
If you have witnessed or are aware of fraud against the government that could be costing taxpayer’s money, you have the right and duty to expose it. Whether you are a high ranking official within a company, an employee or even a bystander who becomes aware of fraudulent activities, filing a whistleblower lawsuit requires the assistance of legal professionals with experience handling these complicated cases.
There are four major laws that are employed to address fraud against the government:
- The False Claims Act (FCA) covers federal spending, contracting and procurement. Fraud involving healthcare (including Medicare and Medicaid, hospice care, and the pharmaceutical industry), defense contracting and aerospace, and the housing and mortgage industry, fall under the FCA. The FCA allows private citizens to file a whistleblower lawsuit on behalf of the government and to potentially receive a significant reward based on a percentage of any money recovered in a successful enforcement action.
- The Internal Revenue Code contains whistleblower provisions that were strengthened with the passage of the Tax Relief and Health Care Act of 2006. Whistleblowers who report information on significant underpayment of taxes or tax fraud by corporations or individuals will be covered by this law and may be eligible to receive a reward for bringing allegations to the government’s attention.
- Fraud related to stocks, securities, or commodities is covered under the Securities Exchange Act and the Commodity Exchange Act. Both Acts were amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 to add significant whistleblower provisions, including protections and the possibility of substantial rewards.
For more information on each of these laws and how they might apply to your case, please contact us to speak with an experienced qui tam attorney.
Contacting a Whistleblower Attorney
An individual with knowledge of fraud against the government or consumers who is considering taking legal action should contact a law firm that is experienced in the complexities of qui tam law. A number of questions and aspects regarding these laws should be reviewed with an attorney before a whistleblower lawsuit is filed.
A short list of questions for a whistleblower attorney to answer might include the following:
- What laws apply to the information that the whistleblower is revealing in his or her allegations? There are four major federal whistleblowing laws (see below) and numerous state laws that might also apply to a particular claim.
- Should the whistleblower tell their employer what they know before they contact the appropriate government agency? The answer to this question might vary depending on the facts of the case and the type of fraud the whistleblower is reporting.
- Which government agency should be contacted and what is the proper way to report what is known? Failing to file a qui tam claim properly can disqualify the whistleblower from possible rewards.
- What is the best way to protect the whistleblower from retaliation by an employer?
- What can whistleblowers do in the process of gathering evidence in their case? What can’t they do?
A competent whistleblower lawyer will be able to answer these questions and chart a course for filing a successful qui tam lawsuit as quickly as possible. Time can be critical to the government accepting and intervening in a claim, and can also have an impact on any reward.
If someone else has already filed a claim based on similar information, or if the government has already begun an investigation, the whistleblower’s right to pursue the case may be denied. Different state and federal laws also have varying statutes of limitation—deadlines for filing and reporting—that must be met. If a deadline is missed, the right to take legal action may be lost.
Whistleblowers who desire to remain anonymous during the whistleblowing process will also benefit from legal counsel, and filing an anonymous claim may require being represented by a whistleblower lawyer. Although anonymity cannot be guaranteed in some cases, the identity of the relator will generally remain undisclosed while a government investigation is ongoing.
