The False Claims Act (FCA) is a federal statute originally enacted in 1863 in response to defense contractor fraud during the American Civil War.[1] The False Claims Act allows the United States to pursue fraud perpetrators, and it allows private citizens to file qui tam suits against those who have defrauded the government. Private citizens who help the Department of Justice with successful qui tam actions may receive a portion of the monetary recovery. There were 672 new qui tam cases in 2020, and the Department of Justice recovered more than $2.2 billion in settlements/judgments from qui tam fraud and false claim cases.[2] If you believe you have valuable information for the Department of Justice, contact Counsel Hound today for a no-cost consultation and case evaluation. Our experienced Qui Tam attorneys will guide and protect you throughout the entire process.

Examples of Government Fraud

Types of False Claims Act violations include:

  • Health care fraud
  • Tax fraud
  • Whistleblower fraud
  • Defense contractor fraud
  • Financial industry fraud
  • Pharmaceutical fraud
  • Defense contractor fraud
  • Construction and procurement fraud
  • Other forms of government fraud

Qui Tam Reward

The False Claims Act entitles the individual who brings a successful qui tam case to a portion of the recovered amount. If the government intervenes in the case, the individual is entitled to 15-25%. If the government does not intervene in the case, the individual is entitled to 25%-30%. There are some circumstances where the individual’s share is reduced to less than 10%. A successful case may also entitle the individual to legal fees and other expenses.[3]

Exceptions to Qui Tam Actions:

Some circumstances prevent an individual from filing or pursuing a qui tam case.

The False Claims Act lists these as:

  • The individual was convicted of criminal conduct from their role in the FCA violation.
  • A qui tam case of the same conduct has already been filed.
  • The government is already party to a proceeding of the same conduct or violation.
  • The qui tam action is based upon information that is available to the public. The exception to this rule is if the individual is the original source of information.

Statute of Limitations

The False Claims Act recommends you file a qui tam action within the following time periods:[4]

  • No more than 6 years after the date on which the violation is committed, or
  • No more than 3 years after the date when the violation and facts are known or reasonably should have been known by the official of the United States charged. In no event more than 10 years after the date on which the violation is committed, whichever occurs last.

If you or someone you know has information regarding government fraud, contact Counsel Hound today for a no-cost consultation and case evaluation.