Federal False Claims Act (Qui Tam)
The Federal False Claims Act discourages fraud against the federal government by allowing citizens with evidence of the fraud to sue on the government’s behalf. The Act is the single most important tool U.S. taxpayers have to recover billions of dollars government contractors steal every year. A citizen who brings suit (also called a whistleblower or relator) may share in the recovery of a successful qui tam suit, typically between 15 and 25 percent.
Categories of fraud against the government include:
- Airport Construction Fraud
- Building and Roadway Construction Fraud
- Conservation Reserve Program Fraud
- Defense Contractor Fraud
- Education Grant Fraud
- Energy Contract Fraud
- Federal Crop Insurance Fraud
- Food and Drug Administration Fraud
- Government Contractor Fraud
- GSA Services and Supply Fraud HUD Fraud
- Medicare Fraud
- Military Procurement Fraud
- Postal Fraud
- Product Substitution
- Quality Assurance and Test Falsification
- Shipbuilding Fraud
- Telecommunications Fraud
- USDA Fraud
- Utilities Fraud
Anyone with knowledge of fraud against the government may file a qui tam lawsuit. Usually an employee, competitor, subcontractor or patient of the wrongdoer files the suit. Here are some things to consider:
- Act quickly once you have evidence of fraud. A qui tam lawsuit can be dismissed if it is not the first one to make the allegations.
- Choose your attorney carefully.
- Do not discuss your lawsuit. A qui tam lawsuit can be dismissed if information about the fraud becomes public before the case is filed.
- Be sure you want to file a lawsuit and know the potential consequences before you file it.
People take great personal and professional risks when they blow the whistle on fraud. It can be very stressful. But if the qui tam lawsuit is successful, the financial reward provisions of the False Claims Act can help compensate for the risks. Whistleblowing also can give a person great personal satisfaction at having stopped wrongdoing. Before filing a qui tam lawsuit, be sure to discuss with your attorney both the pros and cons of doing so as well as how strong your case is and how likely you are to win. Filing a qui tam lawsuit sets in motion a government investigation that the whistleblower has no control over and won’t be able to stop even if the lawsuit is dropped.
- You should have direct and independent knowledge of the fraud, not just a suspicion. Assertions of false claims usually require specific documentation.
- The whistleblower must have specific, direct and independent knowledge of the fraud. The more hard evidence available, the more likely that both a private attorney and the Federal Government will be interested in the case.
- Federal money must be involved or, in a state with its own false claims act, state money must be involved.
- The wrongdoer must have submitted the false claim knowingly or with deliberate indifference to the truth or while acting with reckless disregard for the truth.
- The wrongdoer cannot be a state or state agency.
- Generally, the case needs to be filed within six years of the violation.
We file qui tam cases across the country. We represent qui tam clients on a contingency basis, which means we charge no fees unless there is a recovery.
Contact us confidentially if you are aware of or suspect fraud against the government. We will evaluate your potential case in the strictest confidence. Please telephone us or fill out our online questionnaire. We will respond by telephone or email if you prefer. We will evaluate your information and conduct our own investigation before agreeing to accept your case.
For more information about our Federal False Claims Act practice contact William Hughes.
