Whistleblower

Private citizens can help reduce fraud against the government under the False Claims Act The Act allows everyday people to bring complaints against groups or other individuals that are defrauding the government through programs, agencies, or contracts (but the act does not cover tax fraud). The False Claims Act is a Federal Law.

Total fraud against the government equals about 5% of the yearly Federal budget. Without the deterrence of the False Claims Act, it is now estimated that fraud would be growing at the rate of 7% per year.

Over the past 20 years, financial fraud against the United States Government equals an amount almost equal to the yearly Federal Budget. Without the False Claims Act, it would take only 13 years for the financial fraud against the United States Government to equal the yearly Federal Budget and in 20 years the total Fraud against the Federal Government would be twice the size of an annual budget. With these forecasts, it is easy to understand the reason for rewarding those to report fraud against the government and the importance of that reporting to our safety and economy.

The False Claims Act applies when a company or person:

• Knowingly presents (or causes to be presented) to the Federal Government a false or fraudulent claim for payment, or
• Knowingly uses (or causes to be used) a false record or statement to get a claim paid by the Federal Government, or
• Conspires with others to get a false or fraudulent claim paid by the Federal Government, or
• Knowingly uses (or causes to be used) a false record or statement to conceal, avoid, or decrease an obligation to pay or transmit money or property to the Federal Government.

As an example, if a health care provider, such as a hospital, which knowingly "upcodes" or overbills so that the government overpays using Medicaid dollars, the hospital can be liable for a False Claims Act case.