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Congress passed the False Claims Act to encourage people with first-hand knowledge of fraud against the government to come forward. The Act allows those who know of fraud to bring an action on behalf of the government to recover money lost due to fraud. A "qui tam" action informs the government of the fraud, and allows individuals bringing successful actions to receive some of the amount recovered-up to thirty percent of the recovery. If you know of fraud committed against the government, a skilled and knowledgeable qui tam litigation attorney is your best ally.

At Maloney and Maloney, we have been involved in False Claim Act litigation throughout the United States. The False Claim Act is a federal statute also known as the "Whistleblower Law." A whistleblower is an individual who informs the government or other authorities of information that he or she believes constitutes a prohibited act. The term "whistleblower" refers to the fact that the individual reporting the potentially illegal activity is effectively "blowing a whistle" to call attention to the behavior.

The False Claim Act allows whistleblowers to sue a wrongdoer on behalf of the federal government in actions often referred to as "qui tam" actions. "Qui tam" comes from the Latin phrase "Qui tam pro domino rege quam pro se ipso," which means, "Who sues on behalf of the King, as well as for Himself." Under current law, a qui tam whistleblower files suit against the alleged perpetrator of government fraud, acting as a private attorney general of sorts.

Reportable violations of the False Claim Act include:

Preparing a false record or statement to get a fraudulent claim paid by the government
Conspiring with another individual to have a fraudulent claim paid by the government
Holding government property with the intent to defraud or to conceal it from the government
Creating or delivering a fraudulent receipt to the government for its property
Fraudulently buying government property from someone who is not authorized to sell that property
Making a false statement to fraudulently avoid paying a debt or delivering property to the government
Causing someone else to submit a false or fraudulent government claim

At Maloney and Maloney, our qui tam focus is on the healthcare industry. We have extensive experience with whistleblower claims regarding health care fraud, nursing home facilities, hospitals and other health care providers. We handle allegations of such violations as medical provider kickbacks, false Medicare claims and fraudulent claims submitted by nursing homes and other facilities regarding patient receiving Medicare and other government funded assistance.

A whistleblower who pursues a private qui tam action is eligible for 15 to 30 percent of the total award that the government receives, depending on the government's involvement in the action. Qui tam suits are filed quite often. The total amount recovered in qui tam cases has risen quite steadily as well, reaching over $1 billion in each of the last three years.

If you have information about a potential violation of the False Claim Act, please contact us right away at 1-800-272-1025.

Qui Tam - An Overview

Do you have information that someone-a company or an individual-is defrauding the government? If you do, you may be able to bring a lawsuit known as a qui tam action. A qui tam action lets the government recover money that it lost due to fraud. An individual who brings a qui tam action is also entitled to an award of a percentage of the money recovered by the government. If you have knowledge of fraud against the government, it is essential that you seek legal counsel from experienced qui tam litigation attorneys.

Bringing a Qui Tam Action

Any individual can file a qui tam action, alleging that a false claim has been submitted to the government. A false claim could be overcharging the government, charging for services never provided, selling something and not delivering it, making false reports about the quality of a product, failing to properly test products, or any scheme intended to cheat, defraud, or steal from the government.

Who Can Bring a Qui Tam Action?

The federal False Claims Act provides that anyone who has knowledge of fraud or dishonesty may file a qui tam action, but there are limitations. Because the purpose of a private qui tam action is to pursue fraud that has not been uncovered before, a person may not bring a qui tam action if the fraud is public knowledge (for example, if the fraud has been a subject of a prior court action, or has been the subject of testimony before an administrative agency or a legislative body) unless the person bringing the action had knowledge of the wrongdoing independent of the public's knowledge. If you have information about a fraud against the government, you need legal counsel from experienced qui tam litigation attorneys.

Who May Bring a Qui Tam Action

Any individual with knowledge of wrongdoing can file a qui tam action. Because the False Claims Act requires direct knowledge of the wrongdoing, most qui tam actions are brought by parties who fall into one of the following categories:

Government Involvement in a Qui Tam Action

A qui tam action is brought to recover for fraud committed against the federal government. Although qui tam actions are usually brought by private citizens or entities, the federal government has a role to play in a qui tam action. The extent of its involvement will vary from case to case. An experienced qui tam litigation attorney can analyze your claim and determine how much governmental involvement may be anticipated in your case.

The Initial Investigation

A qui tam action is commenced by filing a copy of the complaint (a document that sets out the details of the wrongdoing or fraud that forms the basis of the action) with the federal District Court. A copy of the complaint is also served on the United States Attorney for the district, and on the Department of Justice in Washington, D.C. The complaint is filed and served "under seal," to prevent its contents from becoming public information.

Awards in Qui Tam Actions

Qui tam actions carry with them the potential for substantial monetary judgments being entered against the defendants. A portion of that award will go to the person who initiated the action. An experienced qui tam litigation attorney can analyze your case, and determine how much the likely award will be.

Damages and Penalties

A defendant found liable in an action under the False Claims Act is liable to the federal government for three times the amount of monetary damages sustained by the government, plus a penalty. If the defendant fully cooperated with the government's investigation, and turned over all information about the wrongdoing within thirty days of learning about the wrongdoing, the defendant's damage liability will be reduced to twice the amount of damages sustained.

Protection for the Whistleblower

Most qui tam actions are brought by employees of a company that has defrauded the government. Many employees who know of fraud committed by their employers are reluctant to come forward with information about that fraud, for fear of the possible actions an employer might take in retaliation. Fortunately for them, federal law contains protections for employees who report fraud on the part of their employers. An experienced qui tam litigation attorney can advise you regarding your rights and protections.

Whistleblower Protection

One reason the law requires complaints in qui tam actions to be filed under seal is to protect the identity of the person who brings the complaint. The person's identity will remain secret as long as the case is under seal.

Qui Tam Resource Links

The Qui Tam Information Center
General information website, maintained by the Bauman & Rasor Group, Inc., investigators and consultants who specialize in qui tam actions.

The False Claims Act Legal Center
Website operated by Taxpayers Against Fraud, a nonprofit organization dedicated to using qui tam actions to combat fraud against the government.

Government Accountability Project
"The nation's leading whistleblower organization," working to promote government and corporate accountability.

or use the form below.

Frequently Asked Questions about Qui Tam

Q: What is a "Qui Tam" action?

A: Qui tam (from the Latin qui tam pro domino rege quam pro sic ipso in hoc parte sequitur, meaning "who sues in this matter for the king as well as for himself") is the traditional name for a civil lawsuit brought by an informant to recover a penalty or fine. The term is most commonly used today to describe a lawsuit brought under the federal False Claims Act, or similar state laws, which alleges that someone who received government funds defrauded the government. The plaintiff in a qui tam action is awarded a share of the money recovered from the defendant. The plaintiff's share may be up to thirty percent of the amount recovered.

Q: Why doesn't the government bring qui tam actions?

A: Qui tam actions are brought by people who have knowledge of the fraud before the government knows about it. When the suit is brought, the government is notified about the facts of the case, and given the opportunity to participate.