Albo & Oblon, L.L.P - Arlington/Main Office.
2200 Clarendon Blvd., Ste. 1201
Arlington, VA 22201
(703) 312-0410
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Albo & Oblon, L.L.P -- Fairfax County Office
6367 Rolling Mill Place, Suite 102
Springfield, VA 22201
(703) 455-0046
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Albo & Oblon, L.L.P. -- Norfolk/Hampton Roads Office
World Trade Center
101 West Main Street, Suite 435
Norfolk VA 23510
(757) 200-7900
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Albo & Oblon, L.L.P. -- Washington, D.C./Maryland Office
641 Indiana Avenue, N.W., Second Floor
Washington, DC 20004
(202) 386-7470
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This article is for your personal information only and is not intended as legal advice. This area of the law is very complex. Every case is different and the information contained herein is general. This information is not intended to be legal advice. Nor is this material intended to replace consultation with a professional. Always consult a licensed attorney for your particular case. Nothing herein shall create an attorney/client relationship.
False Claims Act Qui Tam Issues
Q. What is the False Claims Act?
A. The False Claims Act, 31 U.S.C. §§ 3729-3733, imposes civil liability on any person or entity who submits a false or fraudulent claim for payment to the United States government. In general, the False Claims Act covers fraud involving any federally funded contact or program, with the exception of tax fraud.
The primary activities that constitute violations under the False Claims Act are (1) knowingly presenting (or causing to be presented) to the federal government a false or fraudulent claim for payment; (2) knowingly using (or causing to be used) a false record or statement to get a claim paid by the federal government; (3) conspiring with others to get a false or fraudulent claim paid by the federal government; and (4) knowingly using (or causing to be used) a false record or statement to conceal, avoid, or decrease an obligation to pay money or transmit property to the federal government.
It is also improper to cause someone else to submit a false claim. For example, if a subcontractor provides false information to a contractor, who in turn bills the government based on that false information, the subcontractor is liable for causing the submission of a false claim.
Under the False Claims Act, an action must be filed within the later of the following two time periods: (1) six years from the date of the violation of the Act; or (2) three years after the Government knows or should have known about the violation, but in no event longer than ten years after the violation of the Act.
Q. What is a contractor's potential liability for violations of the False Claims Act?
A. Penalties under the False Claims Act can be severe. A person or entity who violates the act must repay three times the amount of damages suffered by the government plus a mandatory civil penalty of at least $5,500.00 per false claim, for all claims made after September 29, 1999.
Q. What is a qui tam action?
A. Qui tam is a legal principal found in the False Act that allows any person, including corporations, known as whistleblowers, to bring a lawsuit on behalf of the government against anyone who uses government funds in a fraudulent way. Qui tam also allows the whistleblowers who filed the suit to receive a portion of any funds that are recovered by the qui tam lawsuit.
Q. How does an individual recover money in a qui tam action?
A. To be eligible to recover money under the Act, one must file a qui tam lawsuit. A relator (i.e., qui tam plaintiff) receives an award only if, and after, the government recovers money from the defendant as a result of the lawsuit. A relator can receive between 15 and 30 percent of the total recovery from the defendant, whether through a favorable judgment or settlement. If the government intervenes and joins an action brought by a relator, the relator generally is eligible to receive at least 15 percent, but not more than 25 percent, of the recovery, depending upon the relator's contribution to the prosecution of the action. If the government chooses not to intervene and the relator proceeds with the action on his own, the relator can receive between 25 and 30 percent of the recovery.
Q. Is it illegal to retaliate against an employee for filing a qui tam action?
A. Yes. Under Section 3730(h) of the False Claims Act, any employee who is discharged, demoted, harassed, or otherwise discriminated against because of lawful acts by the employee in furtherance of an action under the Act is entitled to all relief necessary to make the employee whole. Such relief may include reinstatement, double back pay, and compensation for any special damages, including litigation costs and reasonable attorneys' fees.
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