Whistleblower, False Claims Act & Qui Tam Information

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by The Law Offices of Jason S. Coomer, PLLC

Whistleblower Reward Law, Whistleblower Reward Qui Tam Lawsuits, Securities Fraud Bounty Action Whistleblower Reward Law, IRS Whistleblower Reward Law, Government Contractor Fraud Whistleblower Reward Law, and other Whistleblower Reward Laws by Whistleblower Reward Lawyer Jason S. Coomer

Whistleblower Reward Laws are the most effective method for identifying and preventing large scale fraud against the government, in financial markets, and in large corporations.  New whistleblower reward laws have harnessed the power of economic incentives by offering large monetary rewards to whistleblowers that properly report significant fraud.  These whistleblower recovery laws include Qui Tam Actions and Bounty Actions.  This Whistleblower Reward Law web page provides information on Whistleblower Reward Lawsuits, Whistleblower Qui Tam Compensation Lawsuits, Whistleblower Bounty Action Lawsuits, and other Whistlebower Recovery Lawsuits.

For more information on Qui Tam Lawsuits, Bounty Action Lawsuits, and other Whistleblower Recovery Lawsuits, feel free to contact Whistleblower Reward Lawyer Jason Coomer via e-mail message or use our submission form.

Whistleblower Reward Lawsuit, Whistleblower Qui Tam Recovery False Claims Act Lawsuit, Whistleblower Bounty Reward Lawsuit, Whistleblower Compensation Lawsuit, Whistleblower Bounty Action Lawsuit, and Whistleblower Recovery Lawsuit Information (Qui Tam, Bounty Action, & Whistleblower Reward Law Information)

Under Federal law, whistleblower recoveries can come through four different whistleblower reward laws including the Federal False Claims Act (Qui Tam Actions), IRS Tax Fraud Whistleblower Reward Program, SEC Whistleblower Bounty Actions, and CFTC Whistleblower Bounty Actions.  In addition to these Federal Whistleblower Reward Laws, several states have enacted whistleblower reward laws that encourage private citizens to blow the whistle on significant and systematic fraud.

The Federal False Claims Act is the oldest of the laws and under this law the Federal Government has brought in approximately $30 Billion.  Under this law successful whistleblowers have been awarded over $3 Billion.  The Federal False Claims Act was recently amended by the Federal Enforcement and Recovery Act (FERA) including expanding the reach of the Federal False Claims Act to include subcontractors working under a government contractor and other parties working with government contractors.  The Federal False Claims Act was included expanded protection for employee whistleblowers.

Another Federal whistleblower recovery law is IRS Tax Fraud Whistleblower Reward Program under section 406 of the Internal Revenue Code.  This whistleblower recovery law includes significant economic incentives and protections for whistleblowers to encourage people with specialized knowledge of significant tax fraud to step forward and report the fraud.  These protections if used properly can protect whistleblowers from retaliation and allow whistleblowers to recover large amounts of money for being the first to properly report significant tax fraud.  

Two relatively new whistleblower recovery laws are section 21F of the Securities Exchange Act (SEC Whistleblower Bounty Actions), and section 23 of the Commodity Exchange Act (CFTC Whisteblower Bounty Actions).    These laws were passed in the wake of Financial Market Melt Down in 2008 and in response to massive fraud in the financial markets.  These whistleblower recovery laws are designed to encourage people with specialized knowledge of significant investment fraud, securities fraud, SEC violations, commodity futures fraud, and other financial fraud.  These whistleblower recovery laws were designed to protect whistleblowers that step up and blow the whistle on financial fraud.

All of these whistleblower recovery laws have been recently passed or strengthened to provide additional protections and economic incentives to whistleblowers.  By contacting a whistleblower recovery lawyer, a whistleblower can greatly increase their ability to make a recovery under these whistleblower recovery laws and use whistleblower protections to prevent or punish retaliation for reporting fraud.   

Government Spending and Health Care Spending Increase (Government Fraud Costs Tax Payers Hundreds of Billions of Dollars)

Government spending in the United States has surged past Five Trillion Dollars ($5,000,000,000,000) each year and is expected to continue to increase in the future.   As this public sector spending continues to increase, the amount of fraud against the government by fraudulent contractors, sub contractors, defense contractors, corporations, and health care providers will continue to increase, unless whistleblowers step forward and expose the fraud.  For this reason, the Federal False Claims Act was amended to expand the reach of qui tam actions and provide whistleblowers seeking rewards (relators) with powerful new protections to combat retaliation. 

Through economic incentives whistleblowers seeking rewards (relators) under the Federal False Claims Act are expected to expose hundreds of billions of dollars in fraud against the government and collect tens of billions of dollars for helping the United States stop fraud.  The largest areas of fraud against the government include Medicare Fraud, Defense Contractor Fraud, and Medicaid Fraud.

From a taxpayer stand point, these new whistleblower reward laws and amendments will save the government hundreds of billions of dollars and will prevent the need for a huge government bureaucracy to be created to supervise, audit, and regulate government spending. 

Qui Tam Actions and Bounty Actions Create Economic Incentives through  Whistleblower Recovery Law that are Extremely Effective in Exposing and Preventing Fraud Against the Government as well as other Unlawful Conduct

Offering Economic Incentives including offering rewards and bounties have been an extremely effective method of identifying unlawful conduct, crime, and criminals.  When the government offers the economic reward to private citizen for exposing fraud against the government, such actions are called "qui tam actions".  In these actions, the plaintiff is suing on their own behalf as well for the government and taxpayers.

The qui tam provisions of the False Claims Act are based on the theory that one of the least expensive and most effective means of preventing frauds on taxpayers and the government is to make the perpetrators of government fraud liable to actions by private persons acting under the strong stimulus of personal ill will or the hope of gain.

The strong public policy behind creating an economic gain for whistleblowers is that  the government would be significantly less likely to learn of the allegations of fraud, but for persons in certain positions with specialized knowledge of fraud that has been committed. Congress has made it clear that creating this economic incentive is beneficial not only for the government, taxpayers, and the realtor, but is an efficient method of regulating government to prevent fraud and fraudulent schemes.

The central purpose of the qui tam provisions of the False Claims Act is to set up incentives to supplement government regulation and enforcement by encouraging whistleblowers with specialized knowledge of fraud going on in the government to blow the whistle on the crime.

Similarly, new bounty actions work under the same premise.  By encouraging private citizens with specialized knowledge of financial fraud, the government is seeking to deter investment fraud, securities fraud, SEC violations, retirement fund fraud, corporate malfeasance, and other forms of financial fraud by offering rewards or bounties to persons that properly expose this fraud.

History of Whistleblowers Lawsuits, Government Fraud Lawsuits, and Qui Tam Lawsuits

Governments have long had trouble with unscrupulous government contractors defrauding the government by providing defective goods, over billing services, and seeking payment for goods and services never provided.   The solution that many governments have created is to set up economic incentives for whistleblowers with inside information of fraudulent government contracts to blow the whistle on government contractors that are committing fraud.

Qui tam actions were used in the 13th century England as a way to enforce the King's laws. These actions have existed in the United States since colonial times, and were embraced by the first U.S. Congress as a way to enforce the laws when the new federal government had virtually no law enforcement officers.

During the Civil War, corrupt military contractors were defrauding the United States Army out of hundreds of thousands of dollars and putting troops at risk by supplying troops with defective products and faulty war equipment. Illegal price gouging was a common practice and the armed forces of the United States suffered.  In response, Abraham Lincoln enacted the Federal Civil False Claims Act. A key provision of the act was known as qui tam.

This Act was weakened in 1943 during World War II while the government rushed to sign large military procurement contracts. However, it was strengthened again in 1986 after a long period of and increase in military spending as well as many stories of defense contractor price gouging and government waste.

Recent History of Qui Tam Claims

In 1986 as a result of increased government contractor fraud, Congress amended the False Claims Act in order to make it easier for whistleblowers to file claims against fraudulent corporations and individuals.

The 1986 Amendment defines a "claim" as:

"...any request or demand which is made to a contractor, grantee, or other recipient if the United States Government provides any portion of the money or property which is requested or demanded, or if the government will reimburse such contractor, grantee, or other recipient for any portion of the money or property which is requested or demanded.

The whistleblower's share of recovery is a maximum of 30 percent and the government's prior knowledge of fraud now does not necessarily bar a whistleblower from collecting lost revenue. If the government took over the lawsuit, the relator can "continue as a party to the action." The defendant is also required to pay for the relator's attorney fees. The whistleblower is also protected from retaliatory actions by his or her employer. As a result or the amendment, qui tam lawsuits increased dramatically.   Though the amendment was first made fore corrupt defense contractors, the amendment has uncovered billions of dollars in health care fraud.

Anyone who defrauds the government out of revenue can be held accountable under the False Claims Act. Common defendants include defense contractors, health care providers, other government contractors & subcontractors, state and local government agencies,  and private universities. Whistleblowers often include current and former employees of the defrauding company, competitors of government contractors and public interest groups.

The False Claims Act was enacted to encourage private citizens to assist the government in the fight against fraud. Often the whistleblower faces an uphill battle as large, powerful corporations or individuals are usually named as defendants. An experienced attorney in qui tam claims may help you gain a percentage of stolen government funds.

Qui tam actions typically revolve around false claims that are either directly or indirectly presented to the Government for "payment or approval." These false claims can be generated through the submission of false bills, records, statements or other representations made to the Government.

There are several types of Qui Tam claims covered under the False Claims Act:

  • Mischarging or overcharging for goods or services.

  • Improper price data and the request for payment for services never provided.

  • Holding government property for fraudulent purposes.

  • Avoiding payment of a debt to the government because of illegal reasons.

  • Knowingly providing the government with defective or dangerous products that were falsely certified.

  • Falsely certifying information for the entitlement of benefits.

  • Having any false claim paid by the government.

Potential heroes that blow the whistle on government fraud and corruption include employees, former employees, high-level executives, sub contractors, general contractors, and people working with major defense contractors, telecommunications companies, and large health care organizations.

Blowing the Whistle on Those that Commit Fraud Against the United States Government, First to File Provisions of the Federal False Claims Act, and Preserving Relator Rights to Share in Recovery of Funds (Qui Tam Federal Government Contractor Fraud Whistle Blower Claims)

If you are a Health Care Administrator, Hospital Administrator, Nursing Home Administrator, Doctor, Coder, Benefit Coordinator, Nurse, Chief Financial Officer, or other health care professional that has knowledge and evidence of a Health Care Provider, Hospice Provider, Nursing Home, Hospital, Medical Supply Company, or other health care contractor or subcontractor that is defrauding Tricare, Medicare, or the United States Government out of millions or billions of dollars, it is important to gather evidence of the fraud and blow the whistle on the fraud.

In blowing the whistle on government contractor fraud, subcontractor fraud, defense contractor fraud, off label drug fraud, patent fraud, health care fraud, Medicare fraud, Tricare fraud, VA fraud, or other fraud against the government, it is typically best to contact a Federal Government Contractor Fraud, Medicare Fraud, Tricare Fraud, and Hospice Fraud Qui Tam Claim Lawyer like Jason S. Coomer and the firms that he works with to help investigate the fraud and pull together a disclosure and complaint to file.

For more information on Qui Tam Lawsuits, Bounty Action Lawsuits, and other Whistleblower Recovery Lawsuits, feel free to contact Whistleblower Reward Lawyer Jason Coomer via e-mail message or use our submission form to have a whistleblower recovery Lawyer contact you.

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