False Claims Act Whistleblower Reward

The federal False Claims Act, or FCA, is a federal law that holds individuals and companies liable for defrauding the government. While the original intent of the law was to prevent defense contractor fraud against the Union Army during the Civil War, the law covers virtually any fraudulent contractor claims that cheat the government and, by extension, the American taxpayer. To encourage people to report misconduct, the FCA allows them to file False Claims Act lawsuits on behalf of the government and claim a percentage of the money recovered. Moreover, the FCA whistleblower reward laws protect these individuals from retaliation regarding these whistleblower cases.

The FCA program has resulted in substantial sums of money being awarded to whistleblowers. However, claiming a reward is not as simple as notifying the government about fraudulent activity. There are reporting requirements that must be met and criteria that the government takes into consideration when deciding the reward amount. These matters are best left in the hands of the experienced whistleblower law firm of Oberheiden P.C.

The False Claims Act and Qui Tam Lawsuits

Since the federal government is involved in a vast array of programs, it must rely on private contractors to provide the goods and services necessary to serve the public. The FCA covers any business or individual who contracts to do business with the federal government, whether directly or indirectly. A person or company that knowingly submits a false claim (e.g. an invoice for services that were never rendered) can be held liable for fraud. The objective is to protect taxpayers as well as the groups that are served by the government’s various programs.

The whistleblower is a critical component of this mission. As an incentive for reporting fraud, the FCA allows private citizens to file what are known as qui tam lawsuits on behalf of the government and against those who commit fraud. The qui tam lawsuit has to allege that an individual or business has defrauded the federal government by submitting a false or fraudulent claim. Importantly, those who successfully file these suits may be eligible to claim a portion of the money that the government recovers from the fraudulent party.

Put our highly experienced team on your side

Dr. Nick Oberheiden

Founder

Attorney-at-Law

Lynette S. Byrd

Former DOJ Trial Attorney

Partner

Brian J. Kuester

Former U.S. Attorney

Hon. Kevin McCarthy

55th Speaker, U.S. House of Representatives (ret.)

Government Consultant

Mike Pompeo

Of Counsel

Former U.S. Secretary of State

John W. Sellers

Former Senior DOJ Trial Attorney

Linda Julin McNamara

Federal Appeals Attorney

Nicholas B. Johnson

Former Prosecutor

Roger Bach

Former Special Agent (DOJ)

Chris J. Quick

Former Special Agent (FBI & IRS-CI)

Michael S. Koslow

Former Supervisory Special Agent (DOD-OIG)

Ray Yuen

Former Supervisory Special Agent (FBI)

Which Activities Are Covered By the False Claims Act?

Contractors have devised a number of tactics to defraud different government programs. To combat this, there are seven broad categories of violations under the FCA that may allow a whistleblower to file a qui tam lawsuit and report fraud:

• False claims: This includes presenting, or causing the presentment of, a false or fraudulent claim for payment or approval by the government.
• False records or statements: Covered under this category are making, using, and causing others to make or use a false record or statement which is material to a false claim.
• Conspiracy: Any evidence that an individual or group is conspiring to defraud the government may qualify for prosecution pursuant to the FCA.
• Conversion: The FCA covers both acts and omissions, the latter of which may include the failure to return government property (known as conversion).
• False receipts: The act of making or delivering a receipt of government property, without knowing for sure that the information in the receipt is true, could support a FCA qui tam lawsuit.
• Unlawful purchase of government property: Some individuals and companies violate the FCA by purchasing public property from a government employee or entity who cannot lawfully sell it.
• Reverse false claims: These claims arise when an individual or company conceals, avoids, or decreases an obligation to pay the government, along with making records or statements in furtherance of the same.

These are only a few specific examples which may qualify as violations of the FCA:

• Soliciting or receiving illegal kickbacks or referral fees
• Billing services (e.g. Medicare) for medically unnecessary procedures
• Submitting invoices for goods or services that were never rendered
• Billing for goods or services under a cost-plus contract instead of a fixed-price contract
• Failing to perform according to contract requirements in an effort to increase profits

Calculating the Reward Amount

When an individual files a qui tam lawsuit, the government has the right to intervene in the matter. Deciding to do so is a complex issue that takes into account the strength of the evidence provided by the plaintiff (known as a relator in the lawsuit). But the decision to intervene or not is consequential for the whistleblower, as it will affect the amount of a potential false claims act whistleblower reward.

If the government decides to intervene and ultimately recovers defrauded funds, the relator will be allowed to claim a reward of up to 25% of the amount collected. However, if the government declines to intervene, this percentage is increased to a maximum of 30%.

What Should You Do If You Have Evidence of Fraud?

If you have information related to fraudulent activity or other misconduct that may violate the False Claims Act, it is imperative that you speak with an experienced whistleblower reward law attorney right away. Not only can you help put an end to the tax fraud and protect the public, the information you provide may qualify you for a substantial whistleblower reward based on how much the government collects. When you retain Oberheiden P.C. to assist with your FCA/qui tam law matter, our qui tam attorneys get to work on your whistleblower claim by:

• Handling all aspects of your lawsuit and communications with the government
• Reviewing the evidence you have to determine if it makes you eligible for a whistleblower reward
• Ensuring that you cooperate with the government’s request, which will increase the likelihood of a higher reward amount
• Taking legal action against anyone who retaliates against you for becoming a whistleblower
• Maintaining your confidentiality and privacy and protecting your rights as a whistleblower

Contact Our False Claims Whistleblower Award Attorneys

The law rewards whistleblowers who do not unreasonably deny reporting what they know to the government. If you have evidence of a False Claims Act violation and want to know more about qui tam laws and claiming a reward, contact Oberheiden P.C. We can set up a confidential consultation between you and a False Claims whistleblower lawyer today.