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The Federal False Claims Act was originally created during the Presidency of Abraham Lincoln, when during the Civil War, military contractors were defrauding the U.S. government with low-quality, high-price supplies. As a result, Congress decided to offer monetary incentives to citizens who came forward to uncover these frauds. For many years, the majority of False Claims Act cases involved defense and military spending, but in recent years, most focus on fraudulent Medicare claims. There have been several amendments to the Federal False Claims Act over the years to make it easier and safer for whistleblowers to present their cases.
1. Since 1986, more than 4,000 False Claims Act cases have been filed. When laws were passed to make it more rewarding for a whistleblower to come forward, thousands of these cases have been filed, indicated the widespread use of this law to protect the money of honest taxpayers and punish those cheating the government.
2. Qui tam whistleblowers have received almost $1 Billion in False Claims Act awards. Private citizens have received a huge amount of money in helping the government to get back money it was falsely charged. The government itself has recovered approximately $6 Billion in funds, and whistleblowers have received a significant portion of this. However, each case is different, and successful whistleblowers can expect to receive between 15-30% of recovered funds.
3. Usually only the first Whistleblower to file a claim can collect. Essentially, only one person may file a case under the False Claims Act against a fraudulent contractor, regardless of whether this person was the first or only person to know of the fraud. For this reason, it is important that you act quickly if you believe you have uncovered fraudulent activity. Otherwise, anyone who finds out about this activity has the right and ability to file a case, and potentially collect a large amount of money.
Important Details
Every year, a substantial number of companies and individuals submit fraudulent claims to the United States government. Some might defraud the government by charging for services they did not perform, while others overcharge for services they did do. Other types of fraud might occur when a contractor sells supplies to the government at an unfair price or provides shoddy and inferior products. Either way, individuals are profiting at the expense of both the government and our nation's taxpayers.
The Federal False Claims Act is different from States' False Claims Acts. While the differences are often not great, the Federal act applies to different types of contractors and offers different protections and legal processes for handling cases. It is important to understand the difference between Federal and state False Claims Acts when filing a case, as the appropriate method and appropriate jurisdiction is critical in achieving a victory.
Federal False Claims Acts are highly technical. There are many details of the Federal False Claims Act that are difficult for an untrained individual to take into account. The complexity of the law, in addition to the practical experience required to successfully try the case, make it very difficult for private citizens to win a False Claims Act case. Therefore, it is extremely important to contact attorneys with extensive hands-on experience in the field to guide you in developing and filing a Qui Tam case. |
