The False Claims Act rewards citizens for reporting corporate fraud
Whistle-blowers are people who know and can prove that the city, state or federal government has paid claims or invoices to wrongdoers based upon false or misleading information. The Federal False Claims Act and similar state and municipal laws allow the government to collect up to three times the amount it was defrauded, in addition to civil penalties of $5,500 to $11,000 per false claim. A whistle-blower in a qui tam case, known as a “relator,” is entitled to recover 15-25% of any settlement or recovery obtained by the government in connection with the filing of his or her qui tam complaint.
In addition to the Federal False Claims Act, 24 states have their own false claims acts. Each one has established laws that allow recovery for “whistle-blowers” who can prove fraud against a government body and laws that protect them from retaliation by their employer. These states include: California, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Louisiana, Massachusetts, Michigan, Minnesota, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Rhode Island, Tennessee, Texas, Virginia and Wisconsin. The California and Illinois false claims acts also permit relators to bring claims for fraud against private insurers. The District of Columbia, New York City and Chicago also have their own false claims acts.
Qui tam cases come in many varieties. Common types of qui tam fraud include: Medicare and Medicaid Fraud, Nursing Home and Healthcare Fraud, Pharmaceutical Fraud, Construction and Contractor Fraud, Wartime and Defense Contractor Fraud, Aerospace Fraud, Education and Grant Fraud, Procurement Fraud, U.S. Postal Service Fraud, and I.R.S. Fraud.
In February 2009, UBS AG, Switzerland’s largest bank, agreed to pay $780 million to settle charges that it helped thousands of wealthy Americans evade taxes. UBS settled after a former employee brought documents to the IRS detailing massive tax cheating by U.S. citizens.
On July 20, 2009, the State and City of New York agreed to repay the federal government $540 million to settle whistleblower sparked allegations of false Medicaid billing related to speech therapy programs in upstate New York and across the State.
In September 2009, the largest Federal False Claims Act case in history was settled against Pfizer, Inc. for $2.3 billion in connection with the drug company’s illegal off-label marketing of certain drugs. The six relators received awards ranging from $2.3 to $51M.
In October 2009, an Illinois defense contractor, which supplies the military with parts used in fighter jets and helicopters, agreed to pay $25 million to resolve allegations that it overcharged the government for more than a decade. The whistleblower received $4.5M as his share of the award.
In November 2009, South Texas Health Systems agreed to pay $27.5 million to settle claims it paid kickbacks to doctors who referred patients to hospitals within the group. The whistleblower’s share was $5.5M.
If you know your Federal, State or City contractor is committing fraud by submitting fraudulent invoices and receiving payment, you may be able to set things right and be handsomely rewarded as well. For all the KBR, Fluor and Dyncorp LOGCAP employees, this means you too. You know first hand where the fraud is. Report it, it could be worth millions to you and your family. If anyone is uncertain which direction to go, shoot me an email and I will try to help you get started. Don’t worry….there is no way I could steal your Qui Tam case. The laws are pretty clear about that.
Whistleblower Resources
National Whistleblowers Center
Taxpayers Against Fraud Education Fund
Other Related Posts From Ms Sparky
- DoJ starts the new year with Maersk false claims settlement
- Judge to Seal Filings in KBR False Claims Suit
- Lockheed Martin & SAIC settle False Claims Act case for bid rigging at NAVO
- Contractor settles False Claims at Ft. Bliss Army Base
- United States Files Counterclaims Against KBR Alleging False Claims and Kickbacks (Updated 3/17/11)
Tuesday, March 9th 2010 at 2:12 pm |
Thank you Deb for providing this information.
I would encourage anyone with verifiable information related to Fraud Waste or Abuse to investigate the possibility of a qui tam.
I would like to point out however, that you will need to have documentation and solid FACTS – word of mouth does not count – and this is not a rapid process. The average time to complete a qui tam is 5 to 9 years.
Additionally, most attorneys do take these cases on a contingency basis – which means that you do not owe them a fee unless there is a recovery. The contingent fee is generally anywhere from 25% – 40% of your award. You will be responsible for the attorneys actual investigation costs on top of the fee.
The best case is when a person originates the qui tam – and then the Government joins in the suit – such is the case with the current Agility case – the realtor still receives a portion of any recovery – but the Government picks up the cost of the investigation and prosecution – which means your attorney contingency fees will be less.
Tuesday, March 9th 2010 at 6:46 pm |
If we have a report in with the DoDIG can we still report this as a separate case and make sure it is investigated by others or will that be interfering with the first investigation?
Tuesday, March 9th 2010 at 7:02 pm |
You will need to check with an attorney that specializes in Qui Tams – I believe that Deb can direct you to one. They will not charge you for answering this type of question.
It would depend partially on whether the IG chooses to actually investigate your report or not.
I know of successful qui tam’s that were brought by individuals after the infraction had been reported and the Gov’t chose not to investigate.
I will caution that a qui tam requires more than just a report or knowing something – you must have hard evidence and documentation.