Risks and Rewards – False Claims Act

Interest in exposing government fraud is strong, which is one reason the False Claims Act offers lucrative rewards to whistleblowers.

A reward encourages whistleblowers to step forward as responsible citizens and report suspected fraud. The reward can be substantial. Depending on the facts of your case, you may be entitled to as much as 30 percent of any money that is recovered.

If the U.S. Department of Justice intervenes and fraud is found, the Qui Tam plaintiff is entitled to 15 to 25 percent of the funds recovered. If the government declines to get involved and the plaintiff successfully pursues the case on the government’s behalf, the plaintiff’s entitlement increases to 25 to 30 percent of the recovered amount. In successful suits, the defendant must pay the plaintiff’s legal fees.

Under a separate federal law covering tax fraud, whistleblowers may receive a reward of 15 percent to 30 percent of delinquent taxes recovered by the Internal Revenue Service.

Since 1986, recoveries in Qui Tam cases have exceeded $18 billion, and the whistleblowers, also legally known as relators, have obtained more than $2.8 billion in awards. The Department of Justice secured $3 billion in civil settlements and judgments in cases involving fraud against the government in the fiscal year ending Sept. 30, 2010. That included $2.5 billion in health care fraud recoveries—the largest in history.

Under either law, the legal process may be long and complicated, but if you have a strong case, the False Claim Act lawyers at Gordon & Partners will guide you through the process. Contact Gordon & Partners’s Qui Tam lawyers online or call 1 (855) 722-2552 for a free case evaluation.