The False Claim Act, 31 U.S.C. 3729 to 3733, imposes liability on private companies that defraud the government. The law allows private citizens (whistle-blowers, or relators) to bring a Qui Tam case, wherein she can report a fraud or false claim that has been committed against the Government and entitle that relator to compensation. Relators stand to receive between 15% and 25% of any recovered damages, which serves as significant incentive in addition to doing what is morally right. False Claim Act cases often originate in the healthcare arena, from corporate acts constituting pharmaceutical fraud such as off-label marketing, kickbacks, medical device fraud or healthcare billing fraud.
Whistleblowers (Relators) must have first-hand knowledge of the fraud, and consequently the relator is typically an employee of the company. While relators can be hesitant to report the fraud in fear of workplace retaliation, the law protects them. The federal False Claims Act is designed to encourage citizens to report fraud, and to ensure that no retaliatory action can be taken against them.
Qui tam cases are the Government’s greatest resource to combat fraud, so if you know that your company is causing the submission of false claims or committing fraud against a government program, such as Medicare or Medicaid, contact an attorney who specializes in handling Qui Tam actions. Remember, you do NOT need to tell your employer first. If you know that your employer is submitting false claims or engaging in business practices that are defrauding Government monies, contact the attorneys at Edwards Pottinger and allow us to protect your rights.