Fraud comes in many forms, and almost no industry has gone untouched by the dishonest actions of certain individuals. Fortunately, some brave men and women are willing to step up and speak out against the fraudulent use of taxpayers’ resources and tax dollars.
Private citizens can file lawsuits against businesses under the False Claims Act (FCA) and receive a portion of any funds recovered by the government under the law’s qui tam provisions. But what is considered fraud according to the FCA?
Protecting taxpayers’ money
Healthcare is one of the most heavily scrutinized industries due to a variety of fraudulent activities that cost taxpayers billions of dollars annually. Cases often involve:
- Billing for services not provided
- Unnecessary medical procedures
- Kickbacks in exchange for patient referrals
- Unbundling procedures in order to charge more
Government contracting is another area of frequent fraud. Contractors providing goods or services to state and federal agencies may inflate costs on construction projects or deliver substandard products. Not only do their actions cost taxpayers money, but they also compromise public safety.
One area unique to New York state is whistleblowers’ ability to bring qui tam cases involving tax fraud. However, the alleged tax fraud must exceed a specific financial threshold, meaning only substantial cases will be pursued, such as corporate restructuring to avoid taxes, failing to report income and other large-scale tax evasion schemes.
Given the number of financial institutions headquartered in New York City, it should come as no surprise that financial and securities fraud appear frequently in whistleblower filings. Misrepresentation of financial products or abuse of federal programs can trigger an FCA investigation.
If you believe you have information about fraud involving government funds, it’s crucial to speak with a legal professional as soon as possible. There are strict filing procedures and deadlines. They can review your evidence and guide you through the confidential filing process.