Qui Tam / False Claims Act

Have you witnessed fraud against the Government? Stand up and help protect taxpayers.  When private companies rip off the Government they are essentially stealing from every U.S. citizen. Each year billions of dollars are lost when the Government is cheated.  Under the False Claims Act, an individual has the right to file a lawsuit on behalf of the Government to recover money from companies for fraud perpetrated on the Government.

The Process

Generally, it takes an insider with knowledge of the fraud, such as an employee or former employee to come forward with the allegations.  A lawsuit is filed in U.S. Federal District Court confidentially - under seal - without any notice to the defendant.  At the same time, a disclosure statement is served on the Government.  This is a key difference from a typical civil case. The Disclosure Statement is a very critical part of the case and must describe in very specific detail the fraudulent conduct. It serves as a road map for the Government to investigate the allegations.  The Government is allowed to investigate the allegations for 60 days without the Defendant having any knowledge of the claim.

Once the investigation is complete the Government will decide whether to join the lawsuit also known as "intervene."  The likelihood of success is greater if the government intervenes, but it is not required to go forward with the lawsuit.

The Whistleblower's Reward

A whistleblower's courage to right a wrong does not go unnoticed.  The law allows whistleblowers to receive a portion of any recovery for stepping up and taking action.  Under the False Claims Act, the defendant must pay three times the government's losses and for each false claim $5,500 to $11,000. Whistleblowers are entitled to 15 percent to 30 percent of the amount that the government recovers along with other protections provided by law. The defendant also must pay the fees and the related expenses of the whistleblower's attorney.

What is considered fraud?

There are many scenarios which lead to Qui Tam / The False Claims Act cases.  The False Claims Act covers fraud involving any federally funded program or contract. You may have a potential Qui Tam / False Claims Act case if you have knowledge that the Defendant defrauded the Government in one or more of the following schemes:

• Intentionally cuts corners by providing inferior products or partial services
• Overcharges / Inflates Prices when dealing with the Government
• Fails to deliver services or goods that were paid for
• Charges for services or products that were never provided or delivered
• Made misleading statements or omissions to receive federal funding - this includes funding from the Stimulus Package (American Recovery and Reinvestment Act), TARP money, etc.
• Misuse of federal funding -  the defendant has violated the rules and regulations with the funding they have received.

Learn more about the different types of fraud that occurs such as Medicare / Medicaid fraud and TARP fraud.

Important Caveats

If you have evidence of fraud it is in your best interest to act quickly.  There are time limitations to bring a lawsuit. Also, you must be the first whistleblower to file the lawsuit.  Additionally, because these cases are filed under seal, it is also very important not disclose the fraud allegations to anyone else.  A case can be dismissed if the fraud allegations become publicly known.

Case Evaluation

We consider a number of factors when evaluating a potential case, including:

• What type of fraud was committed?
• Who has been affected by the fraud?
• Evidence - How can we prove the fraud?
• Value of the case - How much money has the government been cheated out of?
• Disclosure of the fraud - Has it been publicly disclosed already?
• Credibility - Do the allegations come from a credible source such as an employee, former employee, competitor, relative of an employee, patient, friend, etc.?
• The defendant's financial resources - Is it a viable company or are they about to go out of business?

At Ciolek, LTD. we know that "blowing the whistle" on fraudulent conduct is not a decision that can be taken lightly.  False Claims Act / Qui Tam cases are not resolved overnight and you must be ready for the long haul.  However, rest assured that when you are ready to stand up for what is right - we will stand with you.

False Claims Act / Qui Tam cases are done on a contingency basis - we get paid only if you recover. Contact us today for a free consultation to discuss your case (419) 740-5935 or use our confidential contact form on our website.