The False Claims Act (FCA) is a federal law that imposes liability on individuals and entities that defraud governmental programs. Originally enacted in 1863, it serves as one of the primary tools for combating fraud against the federal government. The FCA includes provisions that allow whistleblowers, also known as relators, to file lawsuits on behalf of the government through qui tam actions.
A false claim generally involves knowingly presenting or causing to be presented a fraudulent claim for payment to the government. Violations may include:
Overcharging the government for goods or services
Submitting fraudulent invoices
Delivering substandard or defective products
Falsifying records to obtain payment
Misrepresenting compliance with government contracts
Under the qui tam provisions, whistleblowers who expose fraud can file a lawsuit on behalf of the government and may receive a percentage of the recovered funds as a reward. The FCA protects whistleblowers from retaliation, ensuring they are safeguarded from wrongful termination, demotion, harassment, or discrimination.
If you suspect fraud and wish to file an FCA claim, follow these steps:
Gather Evidence – Collect relevant documentation, records, or communications that support the claim.
Consult an Attorney – Engage an experienced False Claims Act attorney to assess the case and navigate the legal process.
File the Complaint Under Seal – The lawsuit is filed confidentially under seal, meaning it is not initially disclosed to the defendant.
Government Investigation – The Department of Justice (DOJ) will investigate the claims and determine whether to intervene.
Potential Settlement or Litigation – If the government intervenes, it may negotiate a settlement or proceed with litigation. If it declines, the whistleblower may continue the case independently.
Whistleblower Rewards – Successful cases may result in whistleblowers receiving 15-30% of the recovered funds.
Entities found liable under the FCA may face:
Civil penalties of up to $27,000 per false claim
Treble (triple) damages on fraudulent amounts
Exclusion from government contracts and programs