Qui Tam—How Citizen Whistleblowers Protect the System and Defend the Taxpayer
Lying, cheating, and stealing are not behaviors that are advertised for what they are. They are done in the background, with stealth and a sinister purpose. They can go on undiscovered and unchecked indefinitely. It generally takes some one on the inside—or someone who happens upon the activities—to expose the events.
The qui tam provisions authorize individuals to file suit on behalf of the United States against those who have falsely or fraudulently claimed federal funds. Such cases run the gamut of federally funded programs from Medicare and Medicaid to defense contracts, disaster assistance, and agricultural subsidies.
Individuals who knowingly submit false claims for federal funds are liable for three times the government’s loss plus a civil penalty of $5,500 to $11,000 for each false claim. If the United States intervenes in a qui tam action, the person who filed the suit may receive from 15 up to 25 percent of the government’s recovery. In FY 2006, whistleblowers were awarded $190 million. (This figure does not reflect whistleblower shares for FY 2006 settlements that were or will be determined after Sept. 30, 2006.)
—U.S. Department of Justice Press Release 06-783, November 21, 2006
The rules for Qui Tam (whistleblower) cases are complicated. You musthave proof of the fraud being committed; you must have first-hand knowledge; and you must be the first to file suit and bring it to the attention of the government in order to be protected.
Working closely with a my co-counsel, Albert L. “Al” Kemp, a retired federal fraud prosecutor, we are qualified to assess and litigate these claims.
We can work with you to bring your whistleblower case to the attention of the government quickly and with less risk. Al and I work with our whistleblower clients to establish their proof, prepare their case for suit, and coordinate with the correct federal resources to ensure a thorough and effective review.
In addition to the federal False Claims Act, a number of states including Georgia have either begun or completed the process of enacting parallel state qui tam – false claims statutes.
Moreover, in December, 2006, new IRS whistleblower rewards for uncovering under payments or tax fraud took effect providing for rewards from 10 percent to 30 percent of recovered monies (Title 26, U.S. Code, Section 7623).
If you are an executive, an accountant, bookkeeper, auditor, office or practice manager, an ethics or compliance officer—or if you know one—who is upset or frustrated that the business they are in does not work honestly and refuses to change, and if you have first hand knowledge and evidence of the false and fraudulent claims being made to the government, then contact my Atlanta office for a confidential consultation to learn more about whether and how you can—and when you should—”blow the whistle” on fraud or wrongdoing.
