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President Barack Obama has signed into law the Fraud Enforcement Recovery Act (FERA), strengthening your ability to go after fraudulent contractors.
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NJ becomes the 22nd state to enact a false claims act.
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Whistleblowers are responsible for nearly 78% of recoveries made by the U.S. Government in 2008.
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blue arrow The U.S. Government has recovered over $21 Billion since 1986, $2.2 of that recovery went to whistleblowers.
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blue arrow The IRS increases the amount of the award a whistleblower can receive.
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What does “Qui Tam” mean?
“Qui Tam” is derived from the Latin phrase… “qui tam pro domino rege quam pro sic ipso in hoc parte sequitur” or “who as well for the king as for himself sues in this matter.” Black’s Law Dictionary defines a Qui Tam action as one “brought by an informer, under a statute which establishes a penalty for the commission or omission of a certain act, and provides that the same shall be recoverable in a civil action, part of the penalty to go to any person who will bring such action and the remainder to the state or some other institution.” In essence, Qui Tam allows a “Relator” to act as “private attorney general” in an effort to prosecute fraud against the government.

What is a “Relator?”
In a Qui Tam case, a “Relator” is the private individual, “whistleblower,” or plaintiff that may bring suit in Federal Court on behalf of the United States under the False Claims Act (FCA).

Qui Tam History
Qui Tam actions have been used since the 13th century in England where they were a popular means for private citizens to gain access into the royal courts. In the United States, Qui Tam actions have been around since 1776 but were seldom used until 1863. As the Civil War raged, Congressional hearings disclosed widespread instances of military contractor fraud that included defective products, substitution of inferior material and illegal price gouging of the Union Army. President Lincoln urged Congress to adopt the Civil False Claims Act, which included the Qui Tam provision, to serve as a weapon against procurement fraud. This law has since been known as the “Lincoln Law” and the “Informer’s Act.” As an incentive for people to step forward and take the risk involved in reporting fraud, Congress allowed “whistleblowers” to share with the government any recoveries that result from Qui Tam lawsuits. This action also encouraged private law firms to litigate cases on the government’s behalf.

Defining Fraud
Under the False Claims Act, “Fraud” means that a town, city, county, municipality, private corporation or individual has knowingly presented a false claim or claims for payment to the United States Government, obliging the Government to pay that claim or claims. The fraud can occur wherever federal or state monies are directly or indirectly used to purchase services or goods.
 

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