The False Claims Act is a federal law that holds people or companies liable for government fraud. It includes a provision that allows non-government citizens to take action on behalf of the government. This process is called whistleblowing, and it can potentially make the person a lot of money. A person who takes action under the False Claims Act, usually referred to as a “relator,” is eligible to receive a cut of the damages, usually ranging between 15 to 30 percent. The government has collected over $22 billion dollars in damages under the act since 1987.
What is The History of The False Claims Act?
The False Claims Act was originally created during the Civil War. It is also commonly referred to the “Lincoln Act.” It was intended to stop corrupt military suppliers during times when the government was too strained to deal with fraud. It remains in place in modern times for similar reasons. The size of the federal government and the sheer number of programs that are in place prevent every last business or program being watched as closely as they might need to be in order to prevent fraud. Under the False Claims Act, everyday citizens can help the government keep watch of things.
What Type of Violations Should Whistleblowers Look For?
If you are a citizen and have evidence of fraud against a government program, then you could potentially be whistleblower. There are a variety of situations that count as fraud, such as knowingly presenting false claims, using a false record in an attempt to get a claim, and using a false record in an attempt to avoid or decrease a payment to the federal government. When it comes to receiving an award for whistleblowing, it’s important to note that only the first relator who files the claim is eligible, even if someone else did most of the work in uncovering the fraud.
What Are The Dangers of Being a Whistleblower?
Whistleblowing also has the potential to affect the lives of many innocent people. If a large and well-known organization is shut down due to its participation in illegal activities, then thousands of people are going to lose their jobs. To ensure protection, companies rely on their internal communication. Employees are expected to go to their supervisors when they see signs of a problem so that the supervisors can have a chance of fixing it. Therefore, when you engage in whistleblowing, you cause a breakdown of trust between you, your supervisors and the entire company.
The same can be said of a situation in which a close friendship or family member was connected to your whistleblowing incident. Whistleblowing without the proper protection could potentially cause you to lose your job and your friends. You could face a great deal of tension, so you must know that you feel strongly about what you are doing.
It’s very important to secure a good whistleblower attorney before you make any big moves forward with your case. Whistleblowing is complicated, and the information involved needs to be carefully considered. After a thorough investigation is completed, a good attorney will present a strong case and work hard to get you the maximum amount of money.
Legal researcher Shelby Warden shares this information to raise awareness of the rewards for reporting fraud. The whistleblower attorneys of Goldberg Kohn obtained the largest verdict in False Claims Act history with a total judgment of $334 million. The firm’s attorneys have the critical knowledge and experience to get the results needed in these cases.