2013 a landmark year for the False Claims Act and fund recovery

On Behalf of | Jan 7, 2014 | Whistle-blower Claims

There are many people who simply want to do the right thing but are afraid to do so in regards to corporate fraud against the government. However, some legislation, including the False Claims Act, allows employees to seek justice for corporate infractions without fear of retaliation. In 2013, over $3.8 billion in funds was reclaimed under the FCA, according to the Department of Justice. Designed to provide protective measures for individuals or companies who report those who defraud governmental programs, the Act is the federal government’s primary tool in combatting fraud committed against it. Wisconsin workers can initiate federal government false claims actions and receive protection from retaliation.

The False Claims Act will also potentially provide compensation for the efforts of the whistleblower. Often, insiders come forward when corporations file fraudulent claims to receive government payments. The recovery of over $3.8 billion in reclaimed funds in 2013 represents the second largest collection of funds in United States history.

The FCA includes a qui tam provision that allows people or entities that are not affiliated with the government to file actions on the government’s behalf. According to annual reports, 752 qui tam lawsuits were filed in 2013. These lawsuits were solely responsible for over $2.9 billion of the funds recovered this year.

Persons filing under the False Claims Act stand to receive a portion (usually about 15-25 percent) of any recovered damages. However, filing anti-fraud lawsuits on behalf of the government can be complicated. If an individual has knowledge of fraud committed against a governmental agency and is afraid to report it, the FCA is designed to help. Some in Wisconsin have sought additional assistance and guidance with filing a qui tam lawsuit and requesting protection under the False Claims Act.

Source: ringoffireradio.com, False Claims Act Recovered $3.8 Billion in 2013, Joshua Schwitzerlett, Dec. 25, 2013


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