Halunen & Associates

The False Claims Act is a powerful tool used by the United States government to help recover billions of dollars stolen each year through fraud. It is difficult for the government alone, with its limited resources, to combat fraud among its many contractors. In response, the government calls on private citizens with evidence of fraud to come forward, to “blow the whistle,” on illegal practices. Most False Claims Act lawsuits are filed by employees or former employees of the company committing the fraudulent act. However, ANYONE who has information about fraudulent activity - whether it’s a vendor, accountant, auditor, analyst, medical care provider, service provider, patient, consumer, etc. - is encouraged to report fraud under the False Claims Act, and help secure the return of billions of dollars to federal and state treasuries.

Here at Halunen & Associates, we refuse to stand idly by as money is stolen directly from taxpayers’ pockets. We have represented many individuals who are compelled to come forward and stand up for the rights of those victimized by fraud. Fraud does not have to be tolerated. If you have information about fraudulent activity, please contact our offices today.

The False Claims Act

The False Claims Act, as amended in 1986, provides for penalties and damages equal to three times the government losses for anyone who knowingly submits or causes the submission of a false or fraudulent claim to the United States for government funds, property, or services. The scope of fraud that has been prosecuted under the False Claims Act is very broad (a fairly comprehensive list can be found on the Taxpayers Against Fraud website), but the list can be generally sorted into three main areas:

Defense Fraud involves the United States Department of Defense as it hires contractors to produce weapons systems and military equipment. Contractors may illegally inflate prices, misuse the allotted budget and hours, or substitute inferior parts or products.

Goods and Services Fraud illegally takes advantage of government services, subsidies, and/or regulations. Examples include agricultural subsidy fraud, overcharging for the completion of public works or government construction projects, misuse of funds allocated for scientific research, or overcharging the government for the cleanup of toxic/hazardous waste.

Health Care Fraud is becoming increasingly common in the United States. In recent years a majority of qui tam actions have been used to fight Medicare fraud and fraud against other federally funded health care programs.

Qui Tam Provisions

With the amendments to the False Claims Act in 1986, the Act’s qui tam provisions were strengthened. “Qui Tam” is shorthand for “Qui tam pro domino rege quam pro ipso” which means “Who sues on behalf of the King, as well as for himself.” Under these provisions, a private citizen with information or evidence of fraud, also known as a whistleblower or relator, is encouraged to file a case in federal court and sue, on behalf of the government, violators engaged in fraud. These whistleblowers are rewarded by being able to share in any money the government may recover.

Incentives for Reporting Fraud

The United States government loses billions of dollars each year to fraudulent activity. In an attempt to combat fraud and prevent these staggering losses, the government rewards whistleblowers for their honesty and courage in revealing fraudulent activity. Whistleblowers (”relators”) are typically entitled to anywhere from 15-30% of the government’s total award for the case. A defendant found guilty of fraud must pay three times the government losses, additional penalties, and attorney’s fees for the case - so this sume can be quite generous. A particularly noteworthy example occurred when a technology corporation billed the government for work on helicopters which it had not completed. The executive vice president, not willing to put up with the fraud, blew the whistle on this activity by starting a lawsuit in the U.S. District Court. The Federal Government recovered $150,000,000. The relator received $22,500,000 in reward for his honesty.

Moreover, whistleblowers are entitled to special protection under the law. Employers whose companies are under investigation are prohibited from retaliating against employees who report fraudulent acts or false claims. While those with information about fraudulent activity are sometimes unsure whether doing the right thing is ultimately worth the perceived cost, the attorneys at Halunen & Associates will help protect clients from retaliation and other negative consequences. For more information about whistleblower protection, please refer to our Whistleblower Protection page.

State False Claims Acts

Some states have passed their own False Claims Acts to provide special protection for their own state governments. Illinois is one state that has such protection, titled The Illinois Whistleblower Reward and Protection Act.

Fraudulent Activity Does NOT Have To Be Tolerated!

If you have any further questions about the False Claims Act, or if you or someone you know has information about fraudulent activity, please do not hesitate to call or e-mail our offices, or to fill out our contact form. We would be happy to help you review your situation with a free initial consultation. We assure you that our firm can protect our clients from unlawful retaliation and other negative consequences, and we will keep your information in the strictest confidentiality.