Whistleblower Claims

Do you have insider knowledge of fraud against the state or federal government? If so, various federal and state laws provide both protections and the possiblity of compensation to those who file lawsuits alleging government fraud.

Since 1986, he United States has recovered more than $20 billion dollars from companies who defraud government programs, and private citizens acting as whistleblowers have been awarded a total of over $1.6 billion in these False Claims Act cases.

The law provides powerful tools for individuals to use in ending fraud against the federal and state government while providing the real possibility of a substantial monetary recovery for the whistleblower. These lawsuits can also be known as Qui Tam actions or False Claims Act lawsuits.

Under the False Claims Act, a whistleblower is entitled to 15 to 25 percent of the government’s total recovery, including treble damages and penalties, if the government intervenes in the qui tam case. If the government declines to intervene, and the whistleblower pursues the case, the award amount goes up to 25 to 30 percent.

The following kinds of cases may present opportunities for payment:

• Health care fraud
• Government contractor fraud
• IRS fraud
• Medicare and Medicaid fraud
• Pharmaceutical fraud
• Stimulus funds fraud
• TARP funds fraud

The following are examples of qui tam lawsuits, which have settled in recent years:

• A hospital chain pled guilty to criminal conduct and agreed to pay $731,400,000 under the False Claims Act. The hospital’s frauds included billing for lab tests that were not medically necessary, “upcoding” medical procedures to get higher reimbursement, billing the government for advertising under the guise of “community education,” and billing the government for non-reimbursable costs incurred in the purchase of home health agencies.
• A pharmaceutical company agreed to pay $559,483,560 under the False Claims Act to resolve allegations of fraudulent drug pricing and marketing of a drug sold for the treatment of cancer.
• A bank paid $184 million to settle charges that it illegally kept unclaimed bond proceeds from the state of California and more than 1,000 cities, counties and public agencies statewide.
• A government contractor agreed to pay the government $150 million to settle claims that the company' improperly billed the Department of Defense for sales of helicopters.
• A large nursing home chain agreed to pay $175 million to settle allegations that it defrauded the Medicare program. The fraud involved nursing home workers charging Medicare for time not spent on Medicare patients.

The law firm of Butler, Wooten & Fryhofer represents clients in all types of whistleblower claims. If you have knowledge of a potential whistleblower claim, please contact us confidentially.