Whistleblower FAQs

 Q.        What is a whistleblower?

A:        A whistleblower is a person who has knowledge about fraud and reports that information to the government to hold perpetrators (individuals or organizations) accountable.

Q.        When should a person contact an attorney for assistance in reporting fraudulent conduct?

A:        If an individual has knowledge of a person or entity engaging in fraud, they should contact an attorney who represents whistleblowers immediately. At Sekus Law & Mediation LLC, we will meet with you to provide a free, confidential consultation. 

Q.        Can a whistleblower remain anonymous?

A:        A whistleblower can remain anonymous. Under the False Claims Act, a whistleblower’s identity is typically only disclosed to the government and not the defendant(s) or the public until the matter is resolved.  It is only after a case settles or goes to trial that the identity of the whistleblower becomes public. The whistleblower’s identity is not disclosed during the investigation of the case. Other whistleblower programs also provide those disclosing fraud to the government with anonymity if represented by an attorney, and also protect the whistleblower from retaliation.

Q:        What type of whistleblower program are there?

A:        There are a number of ways an individual can disclose fraud to the government.  Federal and state False Claims Acts enable individuals to file lawsuits against an individual or  corporation that is submitting false claims to the government.  U.S. agency whistleblower programs such as the Security and Exchange Commission Whistleblower Program enable individuals to provide information about fraudulent schemes to the government.  Under both the False Claims Act and U.S. agency whistleblower programs, qualifying individuals are entitled to a share of the government’s financial recovery. 

Q.        What is the False Claims Act?

A:        Federal and state False Claims Acts are laws that imposes liability on persons and/or companies that defraud governmental programs. It applies to all government programs, including Medicare, Medicaid, defense contracting and federal and state grants. It is the government's primary litigation tool in combating fraud. The False Claims Act is a powerful tool that the government can use to fight fraud against its programs. The law has been very successful in recovering billions of dollars in taxpayer money that has been lost to fraud.

Q:        What does the False Claim Act prohibit?

A:        The False Claims Act prohibits 1) knowingly submitting false or fraudulent claims to the government; and 2) knowingly concealing or failing to disclose to the government that a false or fraudulent claim has been submitted.

Q:        What are the penalties for violating the False Claims Act?

A:        The FCA provides for both civil and criminal penalties for violations. Civil penalties can include three times the amount of the government's damages, plus a penalty of up to $5,500-$11,000 for each false claim.

Q.        What role does a False Claims Act whistleblower play in a lawsuit?

A:        The individual bringing the False Claims Act lawsuit, called the relator, has little actual involvement in the lawsuit. The relator is responsible for providing his or her attorney with information about the fraud sufficient to enable the attorney to draft a complaint and a disclosure statement. After the lawsuit is filed, the relator has no involvement in the matter unless (1) the government attorneys ask to meet with the relator to learn more about the specifics of the fraud and (2) sits for a deposition and testifies in the event the matter does to trial.

Q.        What other whistleblower programs exist?

A.        A number of federal and state government agencies also have whistleblower programs that reward individuals who know of possible fraudulent schemes. These agencies are authorized by Congress to provide monetary awards to eligible individuals who come forward with information about fraud that leads to enforcement actions in which over $1,000,000 in sanctions is ordered. The range for awards is between 10% and 30% of the money collected. These laws enable whistleblowers to come forward anonymously and provide protection against retaliation. Agencies with whistleblower programs include the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Financial Crime Enforcement Network, and the Internal Revenue Service.

Q:        What are some examples of fraud about which a whistleblower might have information:

  • Overbilling the government for services or goods that were not provided.

  • Billing the government for services or goods that were not medically necessary.

  • Submitting false claims for services or goods that were provided by someone who was not qualified to provide them.

  • Failing to disclose to the government that a service or good was provided by someone who was not qualified to provide it.

  • Securities, tax, and commodity violations.

Q:        What should an individual do if they suspect fraud against the government?

A:        They should contact a law firm such as Sekus Law & Mediation LLC to understand the options for moving forward with a whistleblower case. Regardless of who a potential whistleblower contacts for legal representation, an attorney can assist in understanding a whistleblowers rights and the process for filing a whistleblower lawsuit.

Sekus Law & Mediation

Sekus Law & Mediation LLC is especially suited to represent clients in lawsuits brought under the government’s whistleblower laws. We bring years of complex litigation experience successfully representing clients in claims arising under federal and state False Claims Acts as well as the whistleblower provisions of U.S. government agencies such as the Security Exchange Commission, Commodity Futures Trading Commission, Internal Revenue Service, Financial Crimes Enforcement Network, and others.

 

The False Claims Act allows private citizens to file suits on behalf of the government (called “qui tam” suits) against those who have defrauded the government.  Private citizens who successfully bring qui tam actions may receive a portion of the government’s recovery. 

 

A number of government agencies also have whistleblower programs that reward individuals who know of possible fraudulent schemes. These agencies are authorized by Congress to provide monetary awards to eligible individuals who come forward with information about fraudulent schemes that leads to the enforcement actions in which over $1,000,000 in sanctions is ordered. The range for awards is between 10% and 30% of the money collected. These laws enable whistleblowers to come forward anonymously and provide protection against retaliation.

 

As an Assistant United States Attorney, Perry prosecuted False Claims Act lawsuits against corporations and individuals who defrauded the government in areas such as healthcare, securities, defense contracting, and federal and state grants. Perry is currently representing a number of clients victimized by fraudulent cryptocurrencies schemes.

Process of filing a whistleblower lawsuit under the False Claims Act

A private citizen who is aware of a person or entity that has submitted false claims for payment to the government can do the following with the assistance of counsel:

·       Prepare a complaint outlining the alleged false claims;

·       Prepare a disclosure statement with additional information about the false claims;

·       File the complaint and disclosure statement under seal with a federal court and the US Department of Justice. “Under seal” means that the documents are not made public; only the government is aware of the documents;

·       The government then investigates the allegations asserted in the complaint. The government can use the full force of its authority, including government agents (FBI, DHS, Postal Service Agents, etc.) and subpoena power.

·       If the government finds that false claims for payment have been submitted by the defendant(s), the government may intervene and prosecute the complaint. The private citizen does not have to take any action or bear any expense.

·       The government is entitled to three times the amount of the false claims submitted to the government.  The government is also entitled to a penalty of up to $11,000.00 for each false claim submitted.

·       As an example, if the defendant submitted 100 claims for a total of $1,000,000.00, the government is entitled to recover $3,000,000.00 in damages and up to $1,100,000.00 in penalties, for a total of $4,100,000.00.

·       If the government obtains a recovery (either through a verdict or settlement), the private citizen is entitled to receive between 15% to 30% of the recovery. The private citizen is also entitled to recover attorneys’ fees and costs. 

·       Once the settlement is final, the complaint and settlement are unsealed; this is typically the first time the private citizen’s name is disclosed to the defendant.

·       The defendant is prohibited by law by taking any retaliatory action against the private citizen and is subject to liability and additional damages if that occurs.

·       In the example above, the private citizen would be entitled up to $1,230,000.00 of the recovery plus attorneys’ fees and expenses.