The False Claims Act Empowers Citizens & Law Firms To Fight Fraud
Whistle-blowers are people who know and can prove that the city, state or federal government has paid claims or invoices to wrongdoers based upon false or misleading information. The Federal False Claims Act and similar state and municipal laws allow the government to collect up to three times the amount it was defrauded, in addition to civil penalties of $5,500 to $11,000 per false claim. A whistleblower in a qui tam case, known as a "relator," is entitled to recover 15-25% of any settlement or recovery obtained by the government in connection with the filing of his or her qui tam complaint.
LPK handles qui tam cases nationwide. In addition to the Federal False Claims Act, 24 states have their own false claims acts. Each one has established laws that allow recovery for "whistle-blowers" who can prove fraud against a government body and laws that protect them from retaliation by their employer. These states include: California, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Louisiana, Massachusetts, Michigan, Minnesota, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Rhode Island, Tennessee, Texas, Virginia and Wisconsin. The California and Illinois false claims acts also permit relators to bring claims for fraud against private insurers. The District of Columbia, New York City and Chicago also have their own false claims acts.
Qui tam cases come in many varieties. Common types of qui tam fraud include: Medicare and Medicaid Fraud, Nursing Home and Healthcare Fraud, Pharmaceutical Fraud, Construction and Contractor Fraud, Wartime and Defense Contractor Fraud, Aerospace Fraud, Education and Grant Fraud, Procurement Fraud, U.S. Postal Service Fraud, and I.R.S. Fraud.
Qui tam cases come in many varieties. Common types of qui tam fraud include: Medicare and Medicaid Fraud, Nursing Home and Healthcare Fraud, Pharmaceutical Fraud, Construction and Contractor Fraud, Wartime and Defense Contractor Fraud, Aerospace Fraud, Education and Grant Fraud, Procurement Fraud, U.S. Postal Service Fraud, and I.R.S. Fraud.
In February 2009, UBS AG, Switzerland's largest bank, agreed to pay $780 million to settle charges that it helped thousands of wealthy Americans evade taxes. UBS settled after a former employee brought documents to the IRS detailing massive tax cheating by U.S. citizens.
On July 20, 2009, the State and City of New York agreed to repay the federal government $540 million to settle whistleblower sparked allegations of false Medicaid billing related to speech therapy programs in upstate New York and across the State.
In September 2009, the largest Federal False Claims Act case in history was settled against Pfizer, Inc. for $2.3 billion in connection with the drug company's illegal off-label marketing of certain drugs. The six relators received awards ranging from $2.3 to $51M.
In October 2009, an Illinois defense contractor, which supplies the military with parts used in fighter jets and helicopters, agreed to pay $25 million to resolve allegations that it overcharged the government for more than a decade. The whistleblower received $4.5M as his share of the award.
In November 2009, South Texas Health Systems agreed to pay $27.5 million to settle claims it paid kickbacks to doctors who referred patients to hospitals within the group. The whistleblower's share was $5.5M.
SOURCE: Levy Phillips & Konigsberg LLP