What is the Difference Between a Whistleblower Complaint and a Qui Tam Complaint?
Whistleblowers Play a Key Role in Exposing Fraud and Abuse. This Involves Filing a Qui Tam Complaint in Many Cases
Filing a qui tam complaint (pronounced “kee tam”) under the False Claims Act is among the most common ways of serving as a federal whistleblower. If you have information about fraud or abuse under a federal contract, grant, or program, you may be eligible to come forward as a qui tam whistleblower and receive a monetary reward for your efforts.
A qui tam complaint is a specific type of whistleblower complaint under federal law. Under the qui tam provisions of the False Claims Act, individuals can file lawsuits on the federal government’s behalf when they have information about fraud and abuse (qui tam literally means, “he who brings an action for the king as well as for himself”).
Filing a whistleblower lawsuit under the False Claims Act’s qui tam provisions is a unique process. As a result, working with an experienced whistleblower attorney is strongly recommended. An attorney who has experience representing qui tam whistleblowers (or qui tam “relators”) in False Claims Act cases will be able to help you make informed decisions and communicate effectively with federal authorities on your behalf.
How False Claims Act Qui Tam Whistleblowers Safely Report Fraud and Abuse to the Federal Government
The False Claims Act is a federal statute that prohibits federal contractors, program participants, and grant recipients from submitting “false or fraudulent” claims for payment from the government. Entities that obtain government funds in violation of this prohibition can face either civil or criminal penalties depending on the circumstances involved.
Along with prohibiting fraud and abuse, the False Claims Act also includes “qui tam” provisions that allow individuals to expose false and fraudulent claims under federal government contracts, federal programs, and federal grants. Crucially, not only does the False Claims Act allow individuals to come forward, but it also encourages them to do so.
One way the False Claims Act encourages individuals to come forward is by allowing them to safely report fraud and abuse to the federal government. Individuals who file a qui tam claim are entitled to strict confidentiality. They are also entitled to protection against retaliation. While retaliation is unlikely, in the event that a qui tam whistleblower’s lawyer discerns his or her identity, the law provides clear remedies for unlawful retaliatory employment actions.
The False Claims Act’s Qui Tam Provisions Also Entitle Eligible Whistleblowers to Monetary Rewards
The False Claims Act also encourages private citizens to come forward by providing for monetary rewards in appropriate cases. When a qui tam action leads to a successful enforcement action (meaning that the government recovers funds lost to fraud or abuse), the whistleblower is entitled to financial compensation calculated as a percentage of the funds recovered—anywhere from 15% to 30% in most cases. Qui tam relators may also be entitled to coverage for their litigation costs and reasonable attorneys fees.
These financial incentives are intended to entice individuals who are on the fence about coming forward. If you are on the fence about coming forward, we strongly encourage you to speak with a qui tam lawyer at our firm. Our lawyers have extensive experience in qui tam cases, and they can use their experience to help you make informed and confident decisions about your next steps.
Serving as a Qui Tam Whistleblower Under the Federal False Claims Act
If you have information about government contractor fraud, defense contractor fraud, healthcare fraud (i.e., Medicare or Medicaid fraud), or any other illegal conduct involving efforts to improperly obtain U.S. taxpayer dollars, it will be worth speaking with a qui tam lawyer about what you can expect if you decide to move forward. Broadly, the process of pursuing a whistleblower case under the federal False Claims Act involves:
1. Determining Your Eligibility to File a Qui Tam Lawsuit
The first step is to determine if you are eligible to file a qui tam lawsuit. You will want to consult with an attorney who has experience representing whistleblower clients in qui tam cases, as there are several factors involved in determining whether you are eligible to come forward under the False Claims Act to report fraud against the government.
2. Preparing Your Qui Tam Complaint
If you are eligible to come forward, the next step is to prepare your qui tam complaint. Here too, it is important to work closely with an experienced attorney who can effectively help you prepare to take legal action on behalf of the federal government.
3. Filing Your Qui Tam Complaint in Federal Court
After preparing your qui tam complaint, the next step is to file your complaint in federal district court. The False Claims Act states that filing a complaint in federal district court is the exclusive means of securing the protections (and compensation) that are available.
A whistleblower’s identity is protected from the moment they properly file a qualifying qui tam complaint with the federal government. The False Claims Act prohibits retaliation from the moment a qui tam relator files a formal complaint as well. However, qui tam relators are only entitled to financial compensation if their complaints are successful (i.e., if they lead to the imposition of civil penalties).
4. Working with the U.S. Department of Justice (DOJ)
Once you file a qui tam complaint, the U.S. Department of Justice will conduct an investigation. You should remain actively involved as the government investigates your case—relying on your legal counsel to interface with the DOJ effectively on your behalf.
5. Awaiting the DOJ’s Decision Regarding Intervention
After the DOJ’s decision comes the decision regarding government intervention. If the government intervenes, it will pursue your case directly. If the Justice Department declines to intervene, you and your attorney will have the option of continuing to pursue your case independently.
6. Continuing to Pursue Liability
Regardless of whether the government intervenes, you will want to continue working with your attorney to pursue liability. If the DOJ intervenes, this will involve continuing to work with federal prosecutors as they build their case and either target a settlement or pursue civil or criminal enforcement in court.
7. Securing Your Whistleblower Reward if Your Case is Successful
If your qui tam case is successful, the final step will be to claim your monetary reward. Rewards under the False Claims Act generally range from 15% to 25% of the funds recovered when the government intervenes, and from 25% to 30% of the funds recovered when the government declines to intervene.
FAQs: Whistleblower Claims Under the False Claims Act
What whistleblower protections are afforded to individuals who file False Claims Act qui tam lawsuits?
Whistleblowers who assist the federal government with combatting fraud by filing a qui tam lawsuit are entitled to strong protections under the False Claims Act. Qui tam whistleblowers are entitled to strict confidentiality, and both private and publicly traded companies are prohibited from retaliating against employees who come forward in the event that they discern a whistleblower’s identity.
Can I file a qui tam lawsuit to expose securities fraud as a whistleblower?
Securities fraud generally does not fall under the False Claims Act. However, whistleblowers can expose securities fraud, commodities fraud, and other similar forms of fraud by filing a whistleblower complaint with the appropriate government agency—which will typically be either the U.S. Securities and Exchange Commission (SEC) or the U.S. Commodity Futures Trading Commission (CFTC). Both of these agencies have whistleblower programs that include provisions for confidentiality, anti-retaliation protections, and monetary rewards in successful cases..
Does the False Claims Act cover tax fraud?
The False Claims Act does not cover tax fraud. If you have information about tax fraud that you are prepared to disclose to the federal government, our attorneys can determine if you are eligible to file a whistleblower complaint with the Internal Revenue Service (IRS).
Which government entities accept whistleblower complaints in cases that don’t fall under the False Claims Act?
Several federal government entities accept whistleblower complaints that do not fall under the federal False Claims Act (various state agencies accept complaints under state false claims acts as well). Federal agencies that have whistleblower reward programs include the DOJ, CFTC, FinCEN, IRS, and SEC.
Do I need to engage a law firm to help me file a qui tam complaint under the False Claims Act?
While not legally required, engaging a law firm to help you file a qui tam complaint under the False Claims Act is strongly recommended. This is a complex process that can have significant legal implications, and a law firm that has experience working with qui tam whistleblowers will be able to advise and represent you throughout the process.
Schedule a Free Consultation to Speak with a Senior Qui Tam Attorney in Strict Confidence
If you would like to know more about filing a whistleblower complaint under the False Claims Act, we invite you to get in touch. To speak with one of our senior qui tam attorneys in strict confidence, call 866-320-3959 or request a free consultation online today.