If you know of a health care provider, military contractor, construction company, or other business committing fraud against the United States federal government, a Virginia whistleblower lawyer can help you determine your legal options and the best path forward.
The False Claims Act (FCA), found at 31 U.S.C. §§ 3729 – 3733, gives private citizens who know or discover fraud against the federal government the power to sue on the government’s behalf.
And if your False Claims Act lawsuit ends with the defendant paying money to the government, you can recover a significant amount. Under the FCA’s qui tam statute, a whistleblower receives a percentage of the amount the government recovers, typically compensatory damages, civil penalties, and treble damages (i.e., three times the government’s damages).
So, call a False Claims Act attorney in Virginia now: (804) 251-1620. You have an opportunity to not only do your civil duty of reporting fraudulent activity against you and fellow taxpayers but also receive a sizable financial reward.
The False Claims Act generally applies to any individual or business that directly or indirectly contracts with and is paid for services by the federal government.
The False Claims Act establishes liability for any individual or business that knowingly submits or causes to be submitted a false or fraudulent claim with the intent of obtaining payment or approval from a federal agency or federally funded program. Conspiring to commit any of these acts can also be considered a violation of the False Claims Act.
In addition, if an individual or entity failed to conduct due diligence (i.e., they should have known that it was billing the government improperly), that can serve as sufficient grounds for a False Claims Act violation.
Further, the FCA imposes civil liability on persons or businesses that make a false claim to avoid paying the federal government money.
Knowledge that a claim is false is critical to the False Claims Act. A person or entity knew of the falsity when the evidence shows they have:
The United States Congress enacted the False Claims Act during the American Civil War for two reasons.
First, defense contractors committed fraud, ripping off the Union Army. For example, some government contractors would bill the Army multiple times for the same horse (duplicate billing), ship boxes of sawdust instead of bullets, sell poorly manufactured blankets and uniforms that fell apart with minimum wear, deliver defective guns and ammunition, and provide unseaworthy ships to the Navy,
Second, the ongoing war effort hindered the government’s ability to investigate and prosecute suspected fraud.
Empowering private citizens to file lawsuits against dishonest government suppliers under the False Claims Act helped the U.S. government fight fraud that weakened its military’s ability without taking personnel away from their primary tasks.
Congress has amended the FCA several times.
Although the False Claims Act’s initial purpose was to stop government contractors’ fraud in defense spending, most current claims involve health care fraud against the Medicare, Medicaid, and Tricare health programs.
There are myriad ways in which individuals and businesses attempt to defraud the government with fraudulent claims for payment.
Common examples of false claims include:
Violating the False Claims Act can have significant repercussions for any individual or business because the law contains both civil and criminal penalties.
Regarding civil liability, the federal government can pursue treble damages (which means triple damages), in addition to a penalty of up to $11,000 per claim.
Regarding criminal liability, health care providers convicted of intentionally presenting fraudulent claims to the government for reimbursement face five up to five years in prison and a fine of $250,000 to $500,000 for a felony conviction.
A whistleblower is a person who reports fraud, corruption, waste, or dangers to public safety and health to the right people by following the appropriate procedural steps.
When you act after discovering another person or business submitting fraudulent claims to the federal government, you blow the metaphorical whistle on the fraudulent activity. Hence the name “whistleblower.“
Officially, the False Claims Act refers to whistleblowers as “relators.”
If you are a potential whistleblower reading this article, the False Claim Act’s qui tam provision is the part of the law that may interest you the most.
The False Claims Act makes it worthwhile for whistleblowers to report fraudulent activity by providing a financial incentive to anyone who provides notice of fraudulent claims.
A qui tam claim is a civil lawsuit filed by a private party against a company or individual allegedly defrauding the federal government. “Qui Tam” is a Latin phrase that means “he who sues on behalf of the king sues for himself as well.”
A qui tam lawsuit is filed “under seal,” meaning it will be kept confidential from the public, except for the federal government. This allows the U.S. Department of Justice to have time to investigate the allegations and determine whether to proceed with a lawsuit against the offending party.
If you are considering becoming a whistleblower under the False Claims Act, I recommend speaking with a False Claims Act attorney to discuss how to file a qui tam claim. One procedural mistake can cost you your job and the ability to recover fair compensation for exposing government fraud.
The prospect of moving forward as a whistleblower under the False Claims Act can be intimidating and overwhelming. The information below is to help shed light on what you can expect as a plaintiff in a False Claims Act lawsuit:
After hiring a Virginia False Claims Act lawyer, one of the first steps is getting to work on drafting a disclosure statement. The False Claims Act requires you to present the federal government with a “written disclosure of substantially all material evidence and information the person possesses.”
The disclosure statement provides an opportunity to show the federal government that the defendant is committing fraud and that you can prove it.
This statement serves as a roadmap for the federal government to conduct its investigation, so your disclosure statement needs to offer details and hold nothing back. Whatever information may assist in uncovering the necessary evidence to prove the fraud needs to be in the disclosure statement.
I recommend reviewing your disclosure statement with a False Claims Act lawyer multiple times to ensure its accuracy and ability to persuade the federal government that the defendant is submitting false claims. Many people within the government will read this statement; however, it generally remains confidential and is not made available to the public.
While drafting a disclosure statement, your Virginia qui tam lawyer will also review any documents and materials you have. This exhaustive review includes the following:
All these documents and materials will likely be presented to the federal government to assist in its investigation of the alleged fraudulent activity.
Once the disclosure statement is drafted and ready for prime time, you must file the qui tam complaint against the defendants in federal court under seal.
The court clerk will provide a copy of the complaint to the assigned judge and certain members of the U.S. Attorney’s Office (the Attorney General of the United States).
Your qui tam complaint remains under seal for at least 60 days. The court can – and often does – extend the period your pleadings remain under seal to give the government time to investigate the fraud allegations. Extensions in six-month increments are common.
Relevant evidence of the alleged fraudulent activity is so vital to a successful qui tam action that I discuss it twice in this section.
For context, the federal government will reject entirely unsubstantiated False Claims Act complaints.
But if your complaint includes documents and data to support your allegations, the U.S. Attorney’s Office may investigate the facts with the help of law enforcement agencies such as the FBI or the DEA.
Typically this factual investigation involves OIG subpoenas that require the accused wrongdoers to produce corporate, financial, billing, business, and communications records.
Once the federal government completes its review of relevant records and evidence, it will determine whether it will support you and intervene in the legal action or whether the government will drop out and let the relator continue on its own. Intervention requires approval from the DOJ’s Washington D.C. headquarters. If the government intervenes, the DOJ will typically amend the complaint to include additional causes of action, such as Anti-Kickback Statute and Truth in Negotiation Act violations.
Parallel to the government serving subpoenas (and thereby notifying the defendants of the pending litigation), negotiations between the government and the defendant’s legal counsel will likely occur. However, depending on the complexity of the case and allegations of fraud, it may take multiple months for any meaningful settlement negotiations to resolve the lawsuit.
If the defendant (or defendants) refuse to settle the lawsuit and a judge or jury finds them liable at trial, the court can order the defendants to pay as much as three times the government’s losses plus penalties of up to $ 11,000 per claim.
If a False Claims Act lawsuit is successful based on the evidence you provide, you may be entitled to a reward between 15-20 percent of recovered funds if the government intervenes.
If the government chooses not to intervene and you prevail in the qui tam litigation, you may be able to receive even more – between 25-30 percent of the amount recovered.
Qui tam actions routinely involve millions of dollars in damages; consequently, a relator’s recovery can be significant. For example, in 2023, whistleblowers received nearly $350 million for their efforts, according to the DOJ’s False Claims Act Report.
Under federal law, the first person to file a case usually recovers the reward. Thus, whistleblowers should refrain from discussing alleged fraudulent conduct with other parties, as another individual can obtain the award if they file the qui tam lawsuit first.
Qui tam actions involving fraud allegations can be complex and challenging, involving numerous witnesses to interview or depose and millions of pages of documents.
Make no mistake: a qui tam action with you as the whistleblower is high-stakes litigation.
The complexity of the False Claims Act, the scope of litigation needed to prove your claim, and the risks and rewards of being a whistleblower are why it makes sense to retain the services of a skilled and knowledgeable Qui Tam lawyer in Virginia. When you have an attorney on your side, they can take the following actions on your behalf:
Remember the following items if you want to protect your qui tam case and statutory rights as a whistleblower:
If you are aware of fraud against the government and have questions about what steps to take to hold the wrongdoer accountable, then now is the time to contact our law firm to discuss your legal options.
Contact one of our whistleblower lawyers today to schedule a free, confidential consultation. You can reach us at (804) 251-1620 or (757) 810-5614. If you decide to initiate a legal action with us, you pay no fees unless and until you win compensation