FAQs
What is the False Claims Act?
- The False Claims Act or FCA is a U.S. federal law that prohibits knowingly submitting false claims for payment to the federal government.
- Companies, entities, and individuals who defraud the government are liable for treble, or three-times the amount of, damages the government incurred due to the defraud; plus civil penalties per submission of each claim for payment.
What is a whistleblower or relator?
A whistleblower, also known as a relator, is a person who – on behalf of the government – sues companies, entities, or other individuals who are defrauding the government.
Can whistleblowers receive a financial reward?
- Yes. If the government intervenes in your case, you are entitled to 15-30% of the total recovery. The exact percentage rewarded depends on the information you provide to the government, how helpful your information is to the government’s fraud investigation, your role in the qui tam case, your timely reporting of the fraud, and other factors.
- If the government does not intervene in your case, you are entitled to 25-30% of the total recovery.
- Whistleblower recoveries are subject to taxation.
What is a qui tam case?
- A lawsuit filed by the whistleblower, on behalf of the government, that outlines the alleged fraud.
- Qui tam cases are filed under seal and can be kept under seal while the government investigates the alleged fraud.
What kind of fraud can be alleged in a qui tam case?
- Any fraud against the government can be a qui tam case. That means anyone who has lied to the government to fraudulently procure funds can be held liable. Common areas include:
- Healthcare fraud: billing for medically unnecessary services, upcoding services for higher financial reimbursements, illegal kickbacks for referrals, and billing for fake services that were never rendered.
- Procurement fraud: overbilling on government contracts, delivering substandard goods or services, bid-rigging, bribes, and falsifying records to obtain contracts.
- PPP fraud: providing false information on PPP loan applications in order to obtain PPP funds or misusing the funds for improper purposes.
What evidence is needed to file a qui tam complaint?
Emails, text messages, invoices and witness statements.
Are whistleblowers protected from retaliation?
Yes. Under the FCA, whistleblowers are protected from retaliation in the form of termination of employment, demotions, suspensions, and harassment.
What are the steps to file a qui tam complaint?
- Reach out to an experienced FCA attorney, like Melissa Green.
- Gather your evidence including documents, emails, contracts, invoices, and any other material that support your fraud allegations.
- Your attorney will draft a qui tam complaint outlining the fraud, which will be filed under seal in court. Your attorney will also draft your disclosure statement, which is given only to the government and contains all of your evidence of the fraud.
- Your attorney will serve the government your qui tam complaint and disclosure statement.
- The government will begin investigating your fraud allegations. The seal period is initially 60 days, but is often extended while the government investigates the allegations.
- The government will decide to intervene in the case and take it over. Or the government will decline to intervene and the case can progress into active litigation in court.