HISTORY
Qui Tam actions have been used as far back
as the 13th Century in England where they
were popular as a way for private citizens
to gain access to royal courts. In the U.S.,
Qui Tam actions have been around since 1776,
although seldom used until 1986. In 1863,
during the Civil War, 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.
At the urging of Abraham Lincoln, Congress
enacted the Civil False Claims Act, including
the Qui Tam provision, as a weapon to fight
procurement fraud. This law has also been
known as the “Lincoln Law” and
the “Informer’s Act.”
Congress decided to give whistleblowers
a share of the recoveries that result from
Qui Tam lawsuits to give people a strong
incentive to step forward and take the personal
and professional risks involved in reporting
fraud. It also wanted to encourage private
law firms to risk their resources in litigating
cases on the public’s behalf.
DEFINING
“FRAUD”:
“Fraud” under the False Claims
Act 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 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.