The False Claims Act (FCA) is the first and one of the strongest whistleblower laws in the United States. Under the FCA, individuals or non-governmental organizations can file a lawsuit in U.S. District Courts against an individual, company, or other entity on behalf of the United States government. This is known as a “qui tam” suit. Whistleblowers who report information about fraudulent activity that results in a financial loss for the federal government may be eligible for financial compensation if the information results in a successful prosecution. The FCA stipulates how much the whistleblower can receive as a reward and provides job protection against retaliation.
How Much Compensation Can Whistleblowers Receive Under the FCA?
Whistleblowers who participate in a successful lawsuit stand to receive a generous reward, as the mandatory amount is 15 to 30 percent of the amount the government recovers. Because the penalties for committing federal fraud are three times the amount of damages plus a civil penalty linked to inflation, whistleblowers often receive payments in the millions of dollars. There are no caps or limits to the amount a whistleblower can be awarded.
What Are Some Examples of False Claims?
Unfortunately, there is a long history of people trying to defraud the government with lucrative schemes. The government’s track record of prosecuting fraud is much more successful under the FCA than for cases without whistleblowers.
Some of the many ways in which false claims are made to government entities include:
- Billing for goods and services never delivered.
- Billing for non-FDA-approved drugs or devices.
- Billing twice for the same goods or services.
- Failing to return overpayments to the government.
- Falsely reporting costs or records related to performance or quality.
- Falsely claiming minority or veteran status to secure a contract.
- Performing unnecessary medical procedures.
To be liable under the FCA, a false claim must also be fraudulent, which means the perpetrator knew what was going on, including actual knowledge or deliberate ignorance of the false claim or reckless disregard of the truth or falsity of the claim.
Marlton Employment Lawyers at Burnham Douglass Fight on Behalf of New Jersey Whistleblowers
If you have information about fraud against the government, you may feel scared and intimidated. Our experienced Marlton employment lawyers at Burnham Douglass are here for you and can explain your rights under the law. Call 856-751-5505 or contact us online today to schedule a free consultation. Located in Marlton and Northfield, New Jersey, we serve clients in South Jersey, including Evesham Township, Cherry Hill, Camden County, Burlington County, and Atlantic City.