Founder
Fraud against the federal government cost taxpayers between $233 billion and $521 billion per year between 2018 and 2022, according to a report by the Government Accountability Office. This fraud doesn’t just hurt taxpayers in their wallets, either, as it also undermines trust in the government and impacts our societal health. Whistleblowers play a crucial role in combating this fraud and safeguarding governmental integrity, but many potential whistleblowers are afraid to come forward because they don’t understand their rights. Here’s what you need to know about your rights and legal options under the False Claims Act, and what you can do as someone who suspects wrongdoing on the part of an employer or agency.
Federal Laws Protecting Whistleblowers
Two crucial federal laws protect whistleblowers and encourage them to report cases of fraud. The first is the 1989 Whistleblower Protection Act, or WPA. The WPA protects whistleblowers from retaliation if they report misconduct by a federal agency. In other words, you can’t lose your job for reporting fraud or other types of misconduct.
The other law whistleblowers need to know is the False Claims Act. The False Claims Act incentivizes those who either know about fraud committed against the federal government or know of plans to commit fraud to report these offenses by offering them a share of the potential monetary award for a successful prosecution. The False Claims Act covers seven types of offenses against the government:
- False claims – Submitting a false claim or invoice to a government agency for payment or approval.
- False statements or records – Using, making, or causing someone else to make or use a false record or statement related to a fraudulent claim.
- Conspiracy – Conspiring to commit fraud in violation of the False Claims Act.
- Conversion – Failing to return government property when required.
- False receipts – Delivering or creating a receipt for government property without full knowledge that the information in the receipt is true.
- Unlawful purchases of government property – Buying government property from a federal employee who isn’t authorized to sell it.
- Reverse false claims – Using, creating, or causing someone else to make or use a false record or statement requesting someone to pay money to the government. This offense also includes concealing, avoiding, or lowering an obligation to pay the government what it’s owed.
Qui Tam Claims Under the False Claims Act
One essential provision of the False Claims Act is that it allows private citizens with knowledge of fraud against the government to file a lawsuit on the government’s behalf against the fraudulent actors. The reason the False Claims Act allows and encourages these lawsuits is that individuals often know about fraud long before federal agencies detect it and have a chance to investigate. These lawsuits are called qui tam claims after an old Latin phrase that means “who sues for the king sues for himself,” and they let the party who files the lawsuit claim some of the money the government recovers in a successful prosecution. The specific percentage available depends on the alleged fraud but can be as high as 30 percent, providing a significant financial incentive for potential whistleblowers to report illegal activity.
Deadline for Filing a Qui Tam Lawsuit Under the False Claims Act
Whistleblowers must file a qui tam lawsuit within six years of the alleged fraud or three years of when the government knew or should have known the “material facts” of the case. We urge potential whistleblowers to speak to a False Claims Act attorney as soon as possible, as proving fraud is often complicated.
Contact Our Rhode Island False Claims Act Lawyers Now
If you know of ongoing fraud or plans to commit fraud against the federal government, Herman Law Group is ready to help. Our clients have uncovered over $40 million in fraudulent claims and received substantial compensation for coming forward. We can handle all the legal procedures for you and represent you in any necessary court hearings. We’re here to protect your rights and aid your efforts to root out fraud. Call now or complete our contact form for a consultation.
