

 |
|
 |
How much
money has been returned to the U.S.
Treasury as a result of Qui Tam lawsuits?
Since the 1986 False Claims Act Amendments,
Qui Tam actions have returned over $1.8
billion to the U.S. Treasury. In fiscal
year 1997 alone, over $600 million was
recovered by Qui Tam cases. |
 |
What types
of activities are covered by the False
Claims Act?
The primary activities that constitute
violations under the False Claims Act
are:
(1) Knowingly presenting
(or causing to be presented) to the
Federal Government a false or fraudulent
claim for payment;
(2) Knowingly using
(or causing to be used) a false record
or statement to get a claim paid by
the Federal Government;
(3) Conspiring with
others to get a false or fraudulent
claim paid by the Federal Government;
and
(4) Knowingly using
(or causing to be used) a false record
or statement to conceal, avoid, or decrease
an obligation to pay money or transmit
property to the Federal Government.
In general, the False Claims Act covers
fraud involving any federally funded
contract or program, with the exception
of tax fraud. While the majority of
Qui Tam actions to date have involved
Government contracts (most notably,
Department of Defense contracts), health
care fraud is now the biggest target
of Qui Tam suits.
A broad array of scenarios can constitute
False Claims Act violations. Some examples
include the following: a contractor
falsifies test results or other information
regarding the quality or cost of products
it sells to the Government; a health
care provider bills Medicare and Medicaid
for services that were not provided
or were unnecessary; or a grant recipient
charges the Government for costs not
related to the grant. |
 |
Does the
False Claims Act cover tax fraud?
No. The False Claims Act explicitly
excludes tax fraud. Section 3729(e)
states that the Act "does not apply
to claims, records, or statements made
under the Internal Revenue Code."
|
 |
Does the
False Claims Act cover waste and mismanagement?
No. While the Government undoubtedly
loses millions of dollars each year
through its own waste and mismanagement,
as well as that of outsiders (e.g.,
Government contractors), the False Claims
Act does not provide a remedy for waste
or mismanagement that does not rise
to the level of fraud. The Act is aimed
only at fraud committed against the
Government. |
 |
What is the
liability for violating the False Claims
Act?
Violators of the False Claims Act are
liable for three times the dollar amount
that the Government is defrauded (i.e.,
treble damages) and civil penalties
of $5,000 to $10,000 for each false
claim. |
 |
Can there
be more than one private plaintiff in
a particular Qui Tam lawsuit?
Yes. More than one person or entity
can join together and file a Qui Tam
lawsuit. |
 |
Is there
a deadline for filing a Qui Tam action?
Under the False Claims Act, an action
must be filed within the later of the
following two time periods:
(1) six years from
the date of the violation of the Act;
or
(2) three years after
the Government knows or should have
known about the violation, but in no
event longer than ten years after the
violation of the Act. (However, at least
one circuit court has interpreted the
second provision to require that Qui Tam actions be filed not later than
three years after the Qui Tam plaintiff,
rather than the Government, knows or
should have known about the violation.)
Further, if before you file, someone
else files a False Claims Act lawsuit
or helps to publicize allegations similar
to yours, you may lose your right to
bring a Qui Tam suit. |
 |
How long
does a Qui Tam action take?
The time from the filing of a Qui Tam
action until its resolution varies greatly
from case to case. One should, however,
be prepared for a Qui Tam action to
take years, sometimes as many as five
or more.
It is true that some Qui Tam actions
are settled relatively quickly (e.g.,
within a year of filing), especially
when the Government decides to intervene.
But, in general, one would be wise not
to expect a quick resolution. |
 |
Do I have
to report the fraud that I know about
to the Government or my employer before
filing a Qui Tam action?
In general, the False Claims Act does
not require you to report the fraud
before filing a Qui Tam action. However,
there are circumstances in which you
must, or would be wise to, inform the
Government before filing. You may wish
to speak with an attorney about this
issue. |
 |
Have I lost
my right to bring a Qui Tam action if
I have already informed the Government
about the fraud committed by the potential
defendant?
No. You do not give up your right to
bring a Qui Tam action by going to the
Government before filing your Qui Tam
lawsuit. You should be aware, however,
that you are barred from bringing a
Qui Tam suit based upon allegations
or transactions which are the subject
of a False Claims Act suit already filed
by the Government. So, if you deliver
your information to the Government before
filing a Qui Tam action, and the Government
in turn files a False Claims Act action
before you file, then you will have
lost your right to bring a Qui Tam lawsuit. |
 |
Can I keep
my identity a secret if I file a Qui Tam action?
If you file a Qui Tam action, the Government
will know your identity, and your name
will likely be disclosed to the defendant
at some point. During the initial seal
period, (under the law) the defendant
is not supposed to learn that you have
filed the lawsuit; however, (in practice)
defendants sometimes figure it out.
After the seal period ends, when the
Government announces its decision regarding
intervention and the complaint is served
on the defendant, your identity will
be revealed. There are circumstances
in which you may be able to file a Qui Tam action and then voluntarily dismiss
it during the seal period without having
your identity ever revealed to the defendant,
but there is no guarantee of anonymity.
|
 |
Will the
wrongdoer(s) go to jail because of my
Qui Tam action?
A Qui Tam suit is a civil action, not
a criminal action. As such, imprisonment
is not a remedy. Filing a Qui Tam action
may, but does not necessarily, trigger
a criminal investigation and prosecution
by the Government which could lead to
jail time for the wrongdoer(s). Any
criminal action would be separate from
the Qui Tam action, and you would have
no control over it. However, you may
be asked to assist in the Government's
criminal action. |
 |
How much
does it cost to file a Qui Tam action?
Because most relators cannot afford
to pay hourly fees as they are incurred,
most Qui Tam attorneys accept a contingency
fee; that is, the attorney gets paid
only if there is a recovery, with the
fee being some percentage of what you
are awarded. With a contingency arrangement,
you still may have to reimburse your
attorney for out-of-pocket expenses
(e.g., filing fees, travel, experts).
|
|
|
|
|
|