Encountering unsettling information during your employment, such as billing discrepancies, unauthorized certifications, or breaches of contract terms, may leave you contemplating your next steps. Are you wondering whether to become a whistleblower? Should you?
Due to Washington DC News, The federal government holds those who defraud it accountable through the robust False Claims Act. If you possess information regarding violations of this statute, you might be eligible for financial compensation and safeguards against employer retaliation in exchange for your truthfulness. While consulting with a qui tam law firm can offer tailored advice, in most instances, blowing the whistle not only shields your professional reputation but also potentially rewards you substantially.
Definition of the False Claims Act
The False Claims Act, also known as the Lincoln Law, traces its origins to the American Civil War era. Initially intended to curb misconduct among early defense contractors supplying subpar provisions to the Union Army, it has evolved into the most potent anti-fraud legislation in the United States. Despite its enactment, some entities persisted in defrauding the government, leading to amendments that fortified its provisions.
Under the False Claims Act, anyone issuing false statements or certifications to the government can face triple damages. Penalties are levied per violation, resulting in multimillion-dollar fines for prolonged or recurring fraud schemes. Operating as a qui tam law, whistleblowers can initiate lawsuits on behalf of the government and potentially recover up to 30% of the government’s settlement by providing credible and unique information that uncovers fraud.
Whistleblowers are also shielded from employer retaliation and can seek damages through legal recourse if subjected to discrimination due to their disclosure.
What Constitutes a False Claims Act Violation?
A False Claims Act violation involves federal government funds. Examples include erroneous Medicare claims, defense contractor payments, infrastructure investments, SBA loans, among others. False claims or certifications are made to evade repayment owed to the government or illicitly acquire funds.
For instance, if a hospital bills Medicare for unperformed tests due to a clerical error, it likely falls short of meeting False Claims Act criteria. However, intentionally neglecting to verify erroneous information or overcharging Medicare as part of a fraudulent billing scheme could render individuals liable under the Act.
Who Can File a False Claims Act Lawsuit?
The False Claims Act allows individuals to file lawsuits on behalf of the federal government. While the government is the primary plaintiff, the whistleblower, or qui tam relator, typically initiates the lawsuit.
To file a False Claims Act lawsuit, you must:
- Possess firsthand knowledge of fraud; mere suspicion is insufficient.
- Provide previously undisclosed information to federal investigators; previously reported information is ineligible for rewards.
- Cooperate with federal investigations if the Department of Justice pursues your claim.
You do not need to be a US citizen, act alone, or be employed by the entity you’re reporting.
Who is Liable Under the False Claims Act?
Liability for False Claims Act violations extends to any individual or entity receiving government funding. Common offenders include healthcare providers, pharmaceutical companies, defense contractors, construction firms, and educational institutions.
A mere mistake does not constitute a violation. However, deliberate submission of false claims, willful ignorance of the law, or intentional defrauding of the government can result in liability.
Penalties for Violating the Federal False Claims Act
False Claims Act penalties are substantial, with fines imposed per violation or false claim. These penalties escalate with inflation, with current rates ranging from $13,946 to $27,894.
Rewards for Whistleblowers Under the False Claims Act
Whistleblowers stand to gain significantly from False Claims Act recoveries. Entitled to 15-30% of a successful settlement, whistleblowers can receive substantial payouts, often reaching hundreds of thousands or even millions of dollars.
The percentage awarded depends on various factors, including the value of information provided, cooperation with investigators, and involvement in the fraudulent activity. Whistleblowers who proceed with recovery independently, should the government decline intervention, automatically receive the highest 30% recovery rate.
Statute of Limitations and Whistleblower Protection
The Civil False Claims Act imposes a limited timeframe to report fraud. The statute of limitations extends to the longer of either six years from the fraud’s occurrence or three years after a US official, aware of the fraud’s material facts, should have known about it, capped at ten years from the violation.
The Act prioritizes whistleblower protection to encourage disclosures. Whistleblowers have the right to sue employers for retaliation, seeking damages such as reinstatement, double back pay, and compensation for emotional distress.
Retaliation under the False Claims Act encompasses various actions, including termination, demotion, pay reduction, and adverse changes to employment conditions.
Navigating False Claims and Whistleblower Protection
If you believe you possess information qualifying you as a False Claims Act whistleblower, consult a False Claims Act attorney promptly. Time sensitivity is crucial in reporting your claim and securing maximum compensation. Speaking out not only upholds integrity but also safeguards your interests.
