For taxpayers, hearing about government fraud and abuse is frustrating and maddening. What people often don’t realize is that many cases begin with employees who notice suspicious billing practices, falsified records or dishonest conduct within their own workplace.
Qui tam lawsuits give those employees a legal way to channel that anger and frustration. For employees in health care, government contracting, education or other publicly funded industries, understanding how qui tam lawsuits work can help explain the important role whistleblowers play in protecting public resources.
What is a qui tam lawsuit?
A qui tam lawsuit is a type of whistleblower case brought under the federal False Claims Act or the New York False Claims Act. It allows individuals to file claims on the government’s behalf when they believe a company or organization has knowingly defrauded the government by submitting false claims. Many times, the whistleblower is a current or former employee with firsthand knowledge of the misconduct.
Conduct that may lead to a qui tam lawsuit includes:
- Billing Medicare or Medicaid for services never provided
- Overcharging government agencies
- Submitting fraudulent invoices under government contracts
- Paying illegal kickbacks in healthcare or contracting arrangements
Government fraud can drain billions of dollars from programs intended to serve the public. It ultimately impacts taxpayers and can reduce funding for essential services.
Qui tam lawsuits can help protect taxpayer money by:
- Recovering improperly obtained government funds
- Deterring future fraud
- Encouraging corporate accountability
- Protecting public programs from abuse
Employees who work directly within these systems can often identify patterns that may not be immediately apparent to outside investigators.
Understandably, employees often hesitate to report fraud because they fear retaliation. They worry about harassment, demotion, termination and damage to their professional reputation. However, many times, both federal and New York State law provide protections for whistleblowers.
Additionally, an employee who files a qui tam lawsuit may receive a percentage of the funds recovered by the government. Under the False Claims Act, they may recover a percentage of the amount obtained through settlement or judgment.
These financial incentives are intended to encourage individuals with knowledge of fraud to come forward, especially if doing so may involve personal or professional risk. It’s important to have experienced legal guidance to learn more.