Whistleblowers Help Government Recover $2.8B in False Claims

By Mathew D. Estes

Illustrating how it pays to not let others get away with cheating the federal government, the U.S Department of Justice (DOJ) recently announced that whistleblowers helped it net $2.8 billion in settlements and judgments stemming from lawsuits against fraudsters.

Lawsuits filed by private citizens against contractors and others resulted in the recovery of the $2.8 billion in fiscal year 2011, according to DOJ. The Civil War-era False Claims Act empowers citizen whistleblowers, also referred to as “qui tam relators,” to file lawsuits against fraudsters on behalf of the federal government. During the fiscal year that ended Sept. 30, 2011, 638 qui tam suits were filed.

A majority of the recovered funds stemmed from health care fraud, particularly false claims concerning the U.S. Department of Health and Human Services’ Medicare and Medicaid programs, the U.S. Department of Defense’s TRICARE program, the Office of Personnel Management’s federal employees’ health benefits programs, and the Department of Veterans Affairs’ health programs. The federal government, however, is not the only party that benefits from qui tam suits. Qui tam relators are entitled to a portion of the funds their lawsuits help the government recover.

What whistleblowers need to know:

• During the 60-day period after a qui tam suit is filed, the complaint will remain sealed and DOJ will investigate the merits of the case.
• DOJ must decide whether it wants to take the lead on the qui tam suit, i.e.  “intervene,” within this 60-day timeframe, though it could request an extension.
• Qui tam relators are entitled to between 15 percent and 25 percent of the funds recovered through a civil judgment or settlement when DOJ intervenes in the case.
• Qui tam relators are entitled to between 25 percent and 30 percent of the funds recovered when DOJ does not intervene in the case.

People with inside knowledge about fraudulent claims made by federal contractors or military contractors, heath care providers or pharmaceutical companies should contact a qui tam attorney. Tully Rinckey PLLC’s Washington, D.C. false claim lawyers can help whistleblowers prepare a qui tam lawsuit. Our qui tam attorneys can represent whistleblowers if DOJ intervenes in the case or if they need to independently pursue a judgment against, or settlement with, a fraudster.

Matthew D. Estes is an associate with Tully Rinckey PLLC working in the firm’s federal employment and labor law group in Washington, D.C. Matthew can be reached at mestes@fedattorney.com. To schedule a meeting with one of Tully Rinckey PLLC’s experienced employment law attorneys call 202-787-1900.