The False Claims Act, originally a Civil War-era law, protects the government against fraud associated with any program or contract that is federally funded, except for tax fraud. Those companies or individuals making false claims to the government for false payments can be liable for three times the federal government's damages as well as civil penalties for every false claim.
Private individuals, called Relators (sometimes also called "whistleblowers"), are entitled to bring claims on behalf of the government, and if successful, can share a "bounty" of the recovery, usually between 15% and 25% of any recovered amount, plus attorneys' fees. The individual generally has specific knowledge about how the government is being defrauded before bringing a claim. Such claims must be filed under seal with the Court.
For tax fraud, there is a new, separate IRS Whistleblower law that can provide up to triple damages and awards for the whistleblower of 15 to 30 percent of the recovered amount. In order to file under this law, the total damages must exceed $2,000,000.
The False Claims Act is a powerful vehicle for U.S. taxpayers to recover billions of dollars lost to fraud associated with U.S. government contractors each year.
For years, the Kansas City whistleblower attorneys of Brady & Associates have helped employees and others to uncover fraud against the U.S. government — and to claim money in return for their whistleblowing. For a free, confidential consultation, please call (913) 696-0925 or complete our online information form. Based in Overland Park near Kansas City, we represent employees in Kansas, Missouri, and elsewhere.