How an Individual Can Help the Government Defeat Fraud
If an individual has knowledge that a false claim was submitted to the government, that person can elect to become a whistleblower and retain an attorney who will draft a complaint and a disclosure statement.
The whistleblower will file these two documents under seal in US district court and send copies to the Department of Justice. After the complaint is filed, the Justice Department has 60 days to investigate the allegations and determine whether it will join the lawsuit. If the Justice Department does join the lawsuit, it has the primary responsibility for prosecuting the case and can limit the whistleblower’s participation in the action. If the qui tam action is successful, the whistleblower’s share of the recovery will range from 15 to 30% depending on the extent of the individual’s investigation. The judge normally determines the percentage. If the department decides not to participate, the whistleblower has the right to continue to pursue the claim on behalf of the US and will receive a higher portion of any recovery received. The False Claims Act states that any person can file a qui tam action as long as they have direct and independent knowledge of the fraud and this knowledge was not obtained from a “public disclosure.”
The definition of “person” includes not only individuals, but also businesses and state or local government entities. The most common plaintiffs in qui tam actions are employees of government contractors, healthcare organizations, and local, state, or federal government.