Very few employees are aware of the False Claims Act (“FCA”) or “Qui Tam” statute. This statute dates back to the Civil War, and was designed to keep dishonest suppliers from defrauding the Union Army.  Because the Federal government was focused on the war effort its ability to investigate and prosecute suppliers seeking to defraud the government was severely handicapped. The FCA circumvented this problem by allowing private individuals to sue and recover on the government’s behalf. Robin Page West, Advising the Qui Tam Whistle Blower, 2 (ABA Publishing 2007).

When a person, usually a company employee, discovers a corporation is defrauding the federal government; the “Qui Tam” statute offers a way for the employee, also known as a “realtor” or “whistle blower,” to sue on the governments behalf. The measure of damages incurred by the government is equal to “treble damages” plus a statutory fine of $5500-$1100 per fraudulent claim. In return for blowing the proverbial whistle, a realtor is awarded up to 30% of the total amount recovered by the government.  

There are many ways in which a company may defraud the government. Listed below are some common examples:

1)      Providing an inferior product and falsely asserting it meets specifications.

2)      Submitting false pricing and cost data during contract negotiations with the government to obtain an inflated contract price.

3)      Mischarging for goods or services not provided.

4)      Billing at the rate of a physician for a service a nurse practitioner or physician assistant completed.

5)      Billing Medicaid for hospice drugs when the federal government has already paid for them.

6)      Submitting false cost reports to obtain higher reimbursements. Id.

This list is by no means exhaustive, if you believe you have witnessed a company defraud the government please contact Wrady & Michel, LLC today so one of our attorneys to evaluate your case.