Halunen & Associates

The False Claims Act is a powerful tool used by the United States government to combat fraud against the government and recover billions of dollars stolen each year out of taxpayers’ pockets.  The government cannot fight this fraud alone. The False Claims Act enables private citizens with evidence of fraud to come forward and ”blow the whistle” on illegal practices. Often these are current or past employees who become aware that their employer is committing fraud against the government. But anyone who has information about fraudulent activity can make a report.  If you are a vendor, accountant, auditor, analyst, medical care provider, service provider, patient, consumer, or anyone else with knowledge, you are encouraged to report fraud under the False Claims Act.

Halunen & Associates has represented many individuals who have made claims under the False Claims Act.  If you have information about fraud against the government, we encourage you to contact our offices today by phone, email or filling out a contact form.

Incentives for Reporting Fraud and Protections for Those Who Do

The government rewards whistleblowers for their honesty and courage in revealing fraudulent activity. In a successful case, whistleblowers – called “relators” – are typically entitled to anywhere from 15-30% of the amount recovered by the government. This amount can be significant because a defendant found guilty of fraud must pay three times the government’s losses, additional penalties, and attorney’s fees for the case.  For example, in a case involving false billing for work on helicopters, the federal government recovered $150,000,000 and the relator received $22,500,000.

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.. For more information about whistleblower protection, please refer to our Whistleblower Protection page.

Examples of Fraud

Reports of fraud typically fall into these categories:

Health Care Fraud involves any kind of fraudulent activity involving medical and hospital services, pharmaceuticals, and medical equipment.  In recent years Medicare fraud and fraud against other government funded health care programs have been the basis of many False Claims Act lawsuits that have generated billions of dollars of returns to the government.

Defense Fraud involves the United States Department of Defense as it hires contractors to produce weapons systems and military equipment and to support military efforts around the globe. The fraudulent conduct includes illegal inflation of prices, misuse of money and time, and substituting inferior parts or products.

Goods and Services Fraud involves conduct that illegally takes advantage of government services, subsidies, 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 waste.

More information about the kinds of cases brought under the False Claims Act can be found on the Taxpayers Against Fraud website.

Why are these sometimes called “Qui Tam” Cases?

The term “Qui Tam” is often heard in connection with cases under the False Claims Act. “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.” A “qui tam” case is one where a private citizen can sue on behalf of the government, which is what happens when a complaint is filed under the False Claims Act.  Based on the “qui tam” concept, whistleblowers are rewarded by sharing in the proceeds recovered by the government.

State False Claims Acts

Some states have passed their own False Claims Acts to ferret out fraud against state government.  Fraudulent conduct often violates both federal and state law and a single case can allege both.  Minnesota’s False Claims Act became effective on July 1, 2010. Illinois also has this protection. Other states include Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Indiana, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Rhode Island, Tennessee, Texas, Virginia, Wisconsin and the District of Columbia.