A suit under the federal False Claims Act (FCA), also known as a "qui tam" action, allows people who have insider information of fraud against the Government, known as a "relator" or "whistleblower," to file a suit to help stop the perpetrators from defrauding the United States Government. The False Claims Act seeks to deter fraud against the United States Government by providing for penalties of up to three times the amount of the fraud in addition to fines of $5,000 to $11,000 per violation. It is estimated that the United States has collected almost $8 billion in fines and penalties in False Claims Act cases since 1986.
The FCA is codified as 31 United States Code Sections 3729 - 3732. It is critical that the South Carolina whistleblower come forward with his or her information as soon as possible. The False Claims Act requires that the South Carolina relator be an "original source" of the information, which generally means that he has direct and independent knowledge of the fraudulent conduct and he has voluntarily provided this information to the Government before filing the qui tam suit. Information about fraudulent conduct which is in the public domain prior to the time the whistleblower reports the same to the Government generally precludes the prosecution of a qui tam suit.
If the qui tam suit alleging false claims is successful, the whistleblower or relator will also be entitled to 15%-30% of the government's total recovery, which includes damages for the false claims, treble damages, plus civil penalties of from $5,500 to $11,000 per false claim. To recover this bounty, the relator must have complied with the complex and unusual statutory requirements, however. Merely providing information to a hotline will not entitle the relator to a recovery under the False Claims Act.
Some of the factors the U.S. Department of Justice considers for a possible increase in the percentage awarded to a relator are as follows:
• The relator reported the fraud promptly.
• When he learned of the fraud, the relator tried to stop the fraud or reported it to a supervisor or the Government.
• The qui tam filing, or the ensuing investigation, caused the offender to halt the fraudulent practices.
• The complaint warned the Government of a significant safety issue.
• The complaint exposed a nationwide practice.
• The relator provided extensive, first-hand details of the fraud to the Government.
• The Government had no knowledge of the fraud.
• The relator provided substantial assistance during the investigation and/or pretrial phases of the case.
• At his deposition and/or trial, the relator was an excellent, credible witness.
• The relator's counsel provided substantial assistance to the Government.
• The relator and his counsel supported and cooperated with the Government during the entire proceeding.
• The case went to trial.
• The FCA recovery was relatively small.
• The filing of the complaint had a substantial adverse impact on the relator.
Some of the factors the U.S. Department of Justice considers for a possible decrease in the percentage awarded to a relator are as follows:
The FCA is codified as 31 United States Code Sections 3729 - 3732. It is critical that the South Carolina whistleblower come forward with his or her information as soon as possible. The False Claims Act requires that the South Carolina relator be an "original source" of the information, which generally means that he has direct and independent knowledge of the fraudulent conduct and he has voluntarily provided this information to the Government before filing the qui tam suit. Information about fraudulent conduct which is in the public domain prior to the time the whistleblower reports the same to the Government generally precludes the prosecution of a qui tam suit.
If the qui tam suit alleging false claims is successful, the whistleblower or relator will also be entitled to 15%-30% of the government's total recovery, which includes damages for the false claims, treble damages, plus civil penalties of from $5,500 to $11,000 per false claim. To recover this bounty, the relator must have complied with the complex and unusual statutory requirements, however. Merely providing information to a hotline will not entitle the relator to a recovery under the False Claims Act.
Some of the factors the U.S. Department of Justice considers for a possible increase in the percentage awarded to a relator are as follows:
• The relator reported the fraud promptly.
• When he learned of the fraud, the relator tried to stop the fraud or reported it to a supervisor or the Government.
• The qui tam filing, or the ensuing investigation, caused the offender to halt the fraudulent practices.
• The complaint warned the Government of a significant safety issue.
• The complaint exposed a nationwide practice.
• The relator provided extensive, first-hand details of the fraud to the Government.
• The Government had no knowledge of the fraud.
• The relator provided substantial assistance during the investigation and/or pretrial phases of the case.
• At his deposition and/or trial, the relator was an excellent, credible witness.
• The relator's counsel provided substantial assistance to the Government.
• The relator and his counsel supported and cooperated with the Government during the entire proceeding.
• The case went to trial.
• The FCA recovery was relatively small.
• The filing of the complaint had a substantial adverse impact on the relator.
Some of the factors the U.S. Department of Justice considers for a possible decrease in the percentage awarded to a relator are as follows:
