Whistleblower Law

What is a Whistleblower?

A whistleblower is an individual – typically a private citizen who possesses inside knowledge within an organization – who exposes fraud, corruption, wrongdoing and illegal activity by “blowing the whistle” against the organization and the fraudulent actors involved, thereby bringing the fraudulent scheme to light. Whistleblowers may report their concerns through a variety of different channels, including internally within the organization, reporting to law enforcement and consulting with a whistleblower attorney.

A whistleblower in a False Claim or “Qui Tam” action, in which the government is alleged to have been defrauded, is referred to as the “Relator” who, on behalf of the government, relates the details of the fraudulent scheme. The Relator is said to “step into the shoes” of the government for purposes of asserting allegations of fraud and pursuing the claim. In fact, the term “Qui Tam” derives from a Latin phrase meaning “he who sues on behalf of the King as well as for himself.”

Enacted during the Civil War in response to unscrupulous defense contractors who were defrauding the United States Government and undermining the U.S. Army, the Federal False Claims Act is designed to punish wrongdoers and reward whistleblowers by providing a mechanism whereby the government is able to recoup monies that were fraudulently absconded.

Under the False Claims Act, the Relator, usually after consultation with a knowledgeable whistleblower lawyer, files a complaint under seal with the Court and simultaneously provides the complaint and supporting evidentiary materials detailing the nature and scope of the fraud to the Attorney General’s Office. After an initial investigation into the claims and allegations, the Government has the election to intervene in the action and prosecute the case or allow the Relator to pursue the case with the help of a whistleblower attorney.

False Claims lawsuits are designed to address a diverse range of fraudulent conduct against the government, including but not limited to:

• Medicare and Medicaid Fraud
• False Billing Practices
• Illegal Kickbacks
• Fraudulent wage violations under government contracts
• Filling prescriptions that lack a legitimate medical purpose
• Misrepresentation of goods or services
• Abuse of disaster relief loans
• Improper or fraudulent PPP Loans
• Ineligible Government Contractors

In 2023 alone, the United States Government recovered in excess of $2.8 billion in fraudulent funds through false claims judgments and settlements. This significant recovery is made possible because the False Claims Act imposes treble damages and significant “per claim” penalties in order to punish and deter fraudulent conduct.

Whistleblowers are highly incentivized as Relators because they are eligible to receive a portion of the Government’s overall recovery in the case. The Relator’s percentage of the recovery is directly tied to the Attorney General’s decision whether to intervene in the action. For example, if the Attorney General elects to intervene and take over the case, the Relator is usually eligible to receive between 15-20% of the recovery; however, if the Attorney General declines to intervene but allows the Relator to move forward and prosecute the case with a whistleblower attorney, the Relator may be eligible to receive between 25-30% of the recovery.

If you or someone you know has knowledge or information concerning fraud against the government, Court King offers free, confidential false claims assessments and consultations concerning your rights as a potential Relator.

For more information regarding false claims, please access these links:

justice.gov/opa/pr/false-claims-act-settlements-and-judgments-exceed-268-billion-fiscal-year-2023
justice.gov/civil/false-claims-act
aw.cornell.edu/wex/false_claims_act
oig.hhs.gov/compliance/physician-education/fraud-abuse-laws/