Due to its extensive size and numerous functions, the federal government cannot adequately protect itself against fraud and financial abuses without the help of ordinary citizens. The False Claims Act -- also known as Lincoln's Law, the Informer's Act or the Qui Tam Statute -- allows a private citizen to sue a person or company that is fraudulently billing the federal government. Actions under this law typically involve government spending programs such as health care, education, social security or the U.S. military. Several states have also created False Claims Act statutes, which enable them to recover money at the state level.
People who file actions under the False Claims Act are informally referred to as “whistleblowers” and formally called relators or “qui tam plaintiffs.” The False Claims Act requires that the lawsuit be filed under seal so that the Department of Justice can investigate and decide whether it will pursue the case. The Department of Justice has 60 days from the date of filing to intervene, decline to intervene, move for an extension of time to determine whether to intervene, seek dismissal of the action or settle the case.
If the Department of Justice takes over the case, the qui tam plaintiff is entitled to between 15 percent and 25 percent of the recovery. If the Department of Justice does not intervene and the qui tam plaintiff pursues the lawsuit on behalf of the government, the qui tam plaintiff is entitled to between 25 percent and 30 percent of the recovery. Any person can be a qui tam plaintiff regardless of whether he or she has first-hand knowledge of the fraud as long as the fraud has not previously been publicly disclosed. If it has already been publicly disclosed, a person can bring a qui tam action only if he or she has first-hand knowledge of the fraud.
The False Claims Act’s definition of fraud expands beyond the typical meaning of deliberately deceiving another in order to unjustly obtain property or services. The False Claims Act covers reckless conduct such that the defendant need not have actually known that the information it provided to the government was false. It is sufficient that the defendant supplied the information to the government either in "deliberate ignorance" of the truth or falsity of the information or in "reckless disregard" of the truth or falsity of the information. The False Claims Act also permits recovery against those that create or provide false information that is then submitted to the government by another.
The False Claims Act protects qui tam plaintiffs who are retaliated against by their employer due to their participation in a qui tam action. The protection is available to any employee who is suspended, demoted, threatened, harassed or otherwise discriminated against by his or her employer because the employee investigates, files or participates in a qui tam action. The protection includes reinstatement, double back pay, interest on the back pay, litigation costs and reasonable attorneys' fees.
If you are suspicious of unusual billing practices that may constitute a False Claims Act case, or are seeking redress for wrongful termination or employment discrimination related to a claim, contact Belt Law Firm or call us toll free at 1-888-933-1514 for your Free Consultation. Your name and contact will be kept expressly confidential.
