The False Claims Act is a wide-reaching law that allows citizens to file lawsuits against individuals or businesses on behalf of the government for defrauding the government. The law is colloquially known as the "qui tam" statute because a private individual ("qui tam") can bring suit on behalf of the government. That sounds pretty scary— but false claims, quetam, and whistleblowers aren't all evil. In fact, these laws are in place to protect taxpayers from fraud and abuse of tax dollars. The False Claims Act (FCA) and qui tam lawsuits have helped recover more than $60 billion from corporations, providers, suppliers and contractors who have defrauded federal programs like Medicare, Medicaid, CHIP, and the Department of Veterans Affairs since they were first enacted in 1863.
What is a False Claims Act lawsuit?
A False Claims Act lawsuit is a type of "qui tam" lawsuit brought under the FCA. A qui tam– a Latin phrase meaning "he who brings an action on behalf of the king as well as himself" – is a person who reports fraud and assists in bringing a lawsuit on behalf of the government. If the government recovers funds as a result of the whistleblower's information, the whistleblower is entitled to a percentage of the amount recovered. If the government decides not to pursue a case, the whistleblower can file a qui tam lawsuit on their own, as long as they have the right evidence. If a qui tam case is successful, the whistleblower will receive 15-30% of the funds collected. A qui tam case is when an individual files a lawsuit against a company they believe is committing fraud against the government.
How can you file a False Claims Act lawsuit?
If you think a company is committing fraud against the government, you can file a qui tam lawsuit under the False Claims Act. The Justice Department may also decide to file suit on its own. First, you need to find evidence that a company is defrauding the government. If a company is defrauding Medicare, for example, look for suspicious patterns in billing practices – like billing for unnecessary tests. Find evidence that the company knew about the false claims at the time the claims were made. If you decide to file a qui tam lawsuit, consult a lawyer to help you draft the complaint and gather the necessary evidence. You should also discuss your plans with an attorney before you contact the government, or the company you think is committing fraud, to be sure that you aren't breaching any confidentiality.
How much can you recover in a False Claims Act lawsuit?
If you bring a successful qui tam lawsuit under the False Claims Act and the government recovers funds, the False Claims Act sets your reward at 15-30% of the amount recovered. If the government recovers $10 million, and you are entitled to a 20% reward, you'll receive $2 million. You'll receive this amount whether the government recovers funds or not. If the government decides to pursue a case, you will receive a percentage of the funds recovered as a reward. If the government declines to pursue your case, and you file a lawsuit yourself, you'll receive a percentage of the funds recovered in your case.
Who Can Be Sued Under the FCA?
Anyone who knowingly submits false claims to the government can be sued under the False Claims Act. This includes government contractors, healthcare providers, and businesses that receive government funding. If you have information that a company or individual is committing fraud against the government, you can file a qui tam lawsuit under the False Claims Act.
Penalties for Violating the False Claims Act
If the government finds that a company is violating the False Claims Act, it can impose significant penalties. The government can disqualify the company from doing business with the government, impose fines and require the company to repay funds received. Companies found to be defrauding the government is making an unethical decision to put their profit ahead of their customers' well-being. By reporting fraud and filing a qui tam lawsuit, you can put a stop to unethical behavior and protect the government from fraud.
Conclusion
The False Claims Act and qui tam lawsuits were created to protect taxpayers from fraud and abuse of government funds. The False Claims Act has helped recover more than $60 billion from companies that have knowingly, with deliberate ignorance or reckless disregard submitted false claims to the government. If you have information that a company is committing fraud against the government, you can file a qui tam lawsuit under the False Claims Act to help recover funds for the government.