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Qui Tam Facts

What does "Qui Tam" mean?

qui tam"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.

If you have any first hand knowledge, information or evidence related to acts of fraud perpetrated against the federal, state, or city government, please contact us for a free and confidential consultation by calling our 24/7 hotline at 212-605-6200 or toll free at 1.888.FRAUD.USA (1.888.372.8387), or by submitting an email inquiry.

The whistleblower attorneys at Levy Phillips and Konigsberg, LLP, have the dedication and resources it takes to successfully prosecute a Qui Tam case. We can protect your rights, fight fraud and obtain the compensation you deserve.

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Latest Qui Tam News

  • March 23, 2012 - WellCare Health Plans, Inc. (NYSE: WCG) today announced that the settlement agreements, which resolve the pending inquiries of the Civil Division of the United States Department of Justice (Civil Division) and the United States Attorneys' Offices for the Middle District of Florida and the District of Connecticut, are now effective. These settlements are related to four qui tam complaints filed by relators against WellCare under the whistleblower provisions of the False Claims Act.
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  • February 24, 2012 - After a year of upcoding accusations and in the face of a reported federal investigation, Prime Healthcare Services President and CEO Lex Reddy has resigned, the California-based health system confirmed yesterday. The company did not mention the reason for his departure, but Reddy reportedly will form a new hospital management company, according to Payers & Providers.
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  • February 14, 2012 - Up 50% from 2009, Federal authorities say they have recovered $4.1 billion in health care judgments in 2011, marking a record high. The Department of Justice and the Department of Health and Human Services say agencies are doing a better job to stop the fraud by performing on site visits for moderate risk providers and performing criminal background and finger print checks for higher risk providers. In 2011, 323 defendants were charged in a $1 billion Medicare fraud scheme involving nine states, over 100 doctors, nurses and physical therapists.
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  • February 10, 2012 - The United States Government has reached an $11 million settlement with Dava Pharmaceuticals, Inc. ("Dava"), involving allegations that it violated the False Claims Act by misreporting drug prices to in turn reduce its Medicaid drug rebate obligations.
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  • February 8, 2012 - Last month, Boeing was forced to pay $4.3 million to resolve federal allegations that it improperly billed the Pentagon for work at the company’s Ridley Park, Pennsylvania facility.
    Read more >>

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