LISTEN. If you have knowledge of a person or company attempting to defraud the federal government, and you come forward with this information, you could be financially rewarded for your courage.
The individuals who do so are known as whistleblowers, and they play a critical role in holding businesses and industries accountable. They also protect taxpayer dollars.
Blowing the whistle on fraud or any other illegal activity that goes against the public interest benefits the government and its people. That’s why the U.S. government offers incentives and protections to those who share credible information with them.
Although you might be nervous to come forward for fear of repercussions from your employer, there are laws in place to protect you from retaliation.
What Are Some Examples of Fraud?
When an individual or company seeks to procure unwarranted funds from the federal government, it’s considered fraud and a violation of the False Claims Act (FCA). The FCA, also known as the Lincoln Law, imposes liability on individuals and companies who defraud government programs.
Fraud occurs in virtually every industry in which government contracts exist. Types of fraud include:
- Medicare and Medicaid fraud
- Defense contractor fraud
- Healthcare fraud
- Pharmaceutical fraud
- Environmental fraud
- Federal crop insurance fraud
- Construction fraud
- Federal student loan fraud
- Tax Fraud
- Financial Industries
- Real Estate
What Is Qui Tam?
Qui tam is a provision in the FCA that allows private citizens with evidence of fraud perpetrated against the federal government to sue the wrongdoer on behalf of the U.S. government. These citizens are rewarded with a substantial share in any financial recovery that’s made (typically 15-30% of the total amount).
The qui tam provision was enacted to encourage private citizens to come forward with information about entities defrauding federal programs, thus allowing the government to recoup stolen funds. Qui tam lawsuits differ from other types of lawsuits, such as personal injuries, in that the person bringing the suit is not the one who has been directly harmed.
Any person with information about fraud against the government – an employee, contractor, competitor, or someone else – can bring a qui tam lawsuit.
If you have information about fraud against the U.S. government, contact Pagliara Law Group. Our attorneys can help you determine if you have a case, and securely walk you through the process.
WHEN CAN I FILE A WHISTLEBLOWER LAWSUIT?
You can file a whistleblower lawsuit against anyone who engages in activities designed to defraud the federal or state government. The New Jersey FCA and the federal FCA list the same examples of activities designed to defraud the government:
- Knowingly presenting a fraudulent claim for payment or approval to an employee, officer or agent of the state or federal government
- Causing a fraudulent claim for payment or approval to be presented to an employee, officer or agent of the state or federal government
- Knowingly making or using false records to attempt to obtain payment or approval from the government for a fraudulent claim
- Causing false records or statements to be made to attempt to obtain payment or approval of a fraudulent claim
- Engaging in a conspiracy to defraud the government by getting a false claim allowed or paid by the government
- Possessing or controlling property that must be delivered to the government and knowingly failing to deliver all of the property to the government
- Delivering a document certifying the receipt of government property without knowing if the information on the receipt is true
- Knowingly buying or receiving government property from someone who is not allowed to sell government property
- Knowingly making or using false statements or records to conceal, avoid or decrease an obligation to pay money to the government
WHY DO I NEED A WHISTLEBLOWER LAWYER?
There are many reasons why it is a good idea to hire a reputable New Jersey whistleblower attorney to help you with your claim. An experienced lawyer can:
- Review your claim to determine if you have a case – Our attorneys are prepared to carefully analyze your claim to determine if your coworkers’ actions constitute a violation of the U.S. False Claims Act (FCA) or the New Jersey False Claims Act. We have a detailed understanding of these laws and their guidelines on illegal activity. We will only advise you to move forward if we think it is in your best interest.
- Guide you through the entire legal process – If you have a valid claim, we can manage every aspect of it, including filing documents with the court and representing you in all legal proceedings. We are veterans of the legal process and know how to handle each part of your case to give you a good chance of success.
- Ensure your claim is filed on time – There are statutes of limitations that set deadlines for filing qui tam claims. If you do not file a claim before the deadline, or statute of limitations, runs out, you are prohibited from filing a claim. Lawsuits under the FCA and the New Jersey FCA must be filed six years from the date of the violation or three years after the government knows or should know about the violation. However, under no circumstance can you file a claim more than 10 years after the violation.
- Fight for the largest amount of compensation possible – If your case is successful, you are entitled to a percentage of the recovered funds. Our New Jersey whistleblower attorneys want you to have the largest amount of compensation available and will work tirelessly toward that outcome.
- Protect you from retaliation – It is against the law for an employer to retaliate against a whistleblower. Our New Jersey whistleblower attorneys are ready to pursue a claim against your employer if he or she terminates, suspends, demotes or reduces your wages for reporting fraud.
Schedule your free, no obligation legal consultation to learn more about how our New Jersey whistleblower lawyers can help you with your whistleblower claim.
WHAT FORMS OF COMPENSATION ARE AVAILABLE?
One of the rewards for a successful whistleblower lawsuit is the knowledge that you did the right thing and helped bring perpetrators of government fraud to justice. Another reward is receiving a percentage of the funds recovered by the federal or state government.
If you file a successful lawsuit under the federal FCA or New Jersey’s FCA, and the federal or New Jersey attorney general joined your case, you will receive anywhere from 15 to 25 percent of the recovered funds.
The amount of compensation you receive will depend upon the court’s determination about the extent to which you substantially contributed to the prosecution of the case. In other words, the more substantial your contribution, the more compensation you will receive.
If the federal government or attorney general did not join your case, but you were successful, you will receive at least 25 percent, but not more than 30 percent.
You are also entitled to compensation for reasonable expenses and attorneys’ fees, as determined by the court and paid by the defendant.
How Are Whistleblowers Protected?
The government affords certain protections for whistleblowers. The FCA provides protection against retaliation: Whistleblowers may not be harassed, threatened, demoted, fired, or otherwise discriminated against because of their decision to come forward.
If you’ve been treated unjustly because you spoke out, you can file a lawsuit against your employer seeking damages including reinstatement (if you were fired) and back pay. Even if your claim turns out to be unsubstantiated, you are protected against retaliation provided your claim was made in good faith.
Can Government Employees Be Whistleblowers, Too?
Government workers can also blow the whistle on their own government. The Whistleblower Protection Act is a federal law that provides these individuals with protection for disclosing various acts of unlawful and unethical behavior on the part of the U.S. government:
- Violations of the law, rules, or regulations
- Abuse of authority
- Gross waste of funds
- Gross mismanagement
- Substantial danger to public health or safety
If you are a federal employee who has uncovered possible fraud by the federal government and you have endured punishment as a result (e.g., demotion, pay cut, firing, or harassment), contact us. Our attorneys can review your case in a free, no-risk evaluation.
What Can a Whistleblower Attorney Do?
Whistleblower lawsuits are complex, but our legal team has the know-how to handle your case. Our attorneys are experienced in litigating qui tam and other whistleblower claims, from healthcare fraud to defense contractor fraud, and we have the resources to cover the expenses associated with your lawsuit. We can:
- Evaluate your claim and all evidence relating to it
- Help you file a lawsuit or submit information under the appropriate whistleblower program (depending on your type of case)
- Persuade the government to get involved in your case, which increases the likelihood for success
- Fight for the maximum compensation for your contributions as a whistleblower
- Remain by your side from start to finish
MORE EXAMPLES
Government Fraud
When individuals seek to procure unwarranted funds from the United States, they are said to be committing government fraud and are therefore in violation of the False Claims Act. Government fraud has been known to occur in virtually every industry that enters into a contract with the federal government. Fortunately, the False Claims Act covers all types of government fraud and allows whistleblowers to file claims against any industry they believe may be guilty of fraudulent activity.
If you have knowledge of any type of government fraud, you stand to receive 15 to 30 percent of the government’s total recovery.
Medicare and Medicaid Fraud
According to the FBI, fraud committed against government health insurance programs cost the United States over $60 billion each year. Oversight coupled with a lack of medical knowledge is generally said to account for the epidemic of healthcare industry fraud in the United States. In other words, since the government has no watchdog group to ensure that healthcare companies charge appropriately for their services, those companies will often overcharge or even charge for services they never performed.
Additionally, since the government lacks a group of medical professionals, companies will also charge for unnecessary services which the government pays not knowing any better. Given the missing oversight and lack of specific understanding of medicine, it is particularly important for whistleblowers in the healthcare industry to come forward in cases of fraud and help recover stolen taxpayer money.
Healthcare Fraud
To receive government funding, healthcare providers are required to file claims which catalog payment information, as well as submit specific records to support their claims. If healthcare providers submit claims or records that are falsified or intentionally misleading in an effort to procure unwarranted federal funds, they may be in violation of the False Claims Act.
Healthcare fraud is the most egregious form of government fraud, accounting for more than $60 billion lost taxpayer dollars each year. Despite this substantial figure, the government has no watchdog group in place to contain healthcare fraud and thus relies almost entirely on False Claims Act whistleblowers to recover stolen funds.
If you have knowledge of healthcare fraud, contact our trusted firm asap.
Common Forms of Healthcare Fraud
Listed below are the most common ways in which companies and individuals defraud Medicare and Medicaid annually.
- Billing for services or supplies never provided
- Filing misleading cost reports
- Submitting falsified records
- Offering kickbacks or other illegal bribes
- Marketing drugs or medical devices for non-approved purposes
Why Does Healthcare Fraud Occur?
One of the reasons the federal government is unable to adequately recognize healthcare fraud is because the falsified payment information is hidden underneath medical jargon. Often, healthcare companies will make it seem like certain services were performed or necessary (when, in actuality, neither one nor the other is true) by using medical terms which, to anyone without a medical degree, would seem legitimate. For this reason, whistleblowers in healthcare fraud cases are typically employees of the fraudulent company who are familiar with medical procedures and company practices.
In such cases, it is not unusual for the whistleblower to become concerned about job security and workplace harassment for filing a False Claims Act lawsuit. Fortunately, the law protects whistleblowers from employer retaliation and discrimination of any kind, even offering compensation in the event harassment takes place.
WHISTLEBLOWER LAWSUITS FOR TAX FRAUD
Under the IRS Whistleblower Law, you can file a lawsuit to put a stop to tax fraud. If your claim meets one of the two conditions below and you prove your allegations, you will receive 15 percent to 30 percent of the recovered funds:
- If your claim is against an individual, he or she must have gross income in excess of $200,000 for any taxable year at issue in the claim.
- The amount in dispute must be in excess of $2 million.
You can dispute the outcome of your whistleblower claim only if it meets the above conditions.
If your claim has to do with disclosure of allegations from the sources below, you could receive up to 10 percent of the recovered funds:
- Judicial or administrative hearings
- Government reports, hearings, audits or investigations
- News media
TYPES OF TAX FRAUD
Common examples of tax fraud for which you might be able to file a whistleblower lawsuit include:
- Failing to report income
- Claiming deductions that you are not allowed to claim
- Hiding assets on your tax return
- Falsely claiming a charitable donation
- Underreporting profits
FILING A CLAIM
Unlike whistleblower claims under the FCA, your attorney can initiate a claim only by contacting the IRS Whistleblower Office.
HOW TO START A WHISTLEBLOWER CLAIM
If you believe people at your workplace are defrauding the federal or state government, contact our New Jersey whistleblower attorneys today so we can review your claim. We will advise you if you have a case and how to proceed.
The process for filing a qui tam claim is basically the same, whether you are filing under the federal law or New Jersey’s state law.
If you are filing a federal case, it will be brought in the name of the government. If you are filing a state claim, it will be filed in the name of the State of New Jersey.
The complaint will be filed under seal for at least 60 days. That means the person or people you are accusing of fraud will not have access to the allegations. The only people who will know about it are you, your attorney, and the federal or state government.
You must submit a copy of the complaint and written disclosure of all material evidence and information you possess concerning your claim. New Jersey law states that this information must be sent by registered mail, return receipt requested.
Before the 60 days are up, the federal government, or the Attorney General from the State of New Jersey, will decide whether or not to join your claim.
If the government joins, it will take over primary responsibility for prosecuting your claim. If not, you have the right to continue the action on your own without the help of the government.
Your claim has a much greater chance of success if the government gets on board. That is why our New Jersey whistleblower attorneys will work hard to create a strong claim to entice the federal or state government to join your case.
WHAT HAPPENS WHEN THE GOVERNMENT TAKES OVER?
Unfortunately, if the government takes over, it can decide to dismiss your claim despite the objections of you or your attorney. The government can also decide to initiate a settlement if it determines that a settlement is fair, adequate and reasonable under the circumstances.
The government also has the power to limit your participation in the claim, which could include limiting:
- The number of witnesses you can call
- The length of testimony from the witnesses
- Cross-examination of witnesses
The government can only do this if the defendant is able to show that your unrestricted participation in the case would result in you harassing the defendant or creating an undue burden or expense on the defendant.
Even if the government does not join your claim, it maintains the right to intervene in your claim at any time. The government or state attorney general may also request copies of all pleadings filed and deposition transcripts.
WHAT HAPPENS WHEN THE 60 DAYS ARE UP?
In a federal claim, the case will be unsealed after 60 days and the accused is required to respond within 20 days. In a state claim, the defendant’s response time is governed by the Rules Governing the Courts of the State of New Jersey.
At this point, most defendants offer to settle the claim rather than go through a trial. However, if the defense decides to proceed to the courtroom, our New Jersey whistleblower attorneys will be prepared to prosecute a successful case.
If we are successful, you will be entitled to a percentage of the recovered funds and attorneys’ fees and other reasonable costs.
LAWS PROHIBITING RETALIATION AGAINST WHISTLEBLOWERS
The federal FCA and New Jersey’s law prohibit employers from retaliating against employees for filing whistleblower claims. Retaliation refers to any discrimination in the terms or conditions of employment, including:
- Termination
- Demotion
- Suspension
- Threats
- Harassment
- Denial of a promotion
The laws state that any employers who retaliate are liable for any relief to make the employee whole again, which could include:
- Reinstatement to the same status the employee had before retaliation occurred
- Two times the amount of back pay
- Interest on back pay
- Compensation for special damages suffered because of discrimination, such as litigation costs and reasonable attorneys’ fees
- Punitive damages, if applicable
If you are victim of any form of retaliation for your whistleblower claim, our New Jersey whistleblower attorneys may be able to pursue a lawsuit to obtain compensation for the damages you have suffered.
Defense Contractor Fraud
When the False Claims Act was originally enacted in 1863, it was done so with the intention of ending the rampant defense contractor fraud which plagued the Union Army during the Civil War. The northern troops were being overcharged for supplies, some of which were faulty and unusable. In response, and at the request of President Lincoln, Congress passed the False Claims Act which issued a severe penalty to those who sought to defraud the government and a reward to those who prosecuted the fraudulent parties. Today, defense contractor fraud, or military contractor fraud remains one of the most common areas for False Claims litigation.
Common Forms of Defense Contractor Fraud
Defense contractor fraud typically involves misleading the government about the cost and quality of the products being supplied. For example, companies might tell the government that the vehicles they are purchasing are bulletproof and worth two hundred dollars each, when actually the vehicles are worth fifty dollars each and do not offer any protection.
While there are countless ways a defense contractor might seek to procure illegitimate government funds, the three most common defense contractor fraud schemes include:
Cross-Charging: Cross-charging occurs when a defense contractor enters into simultaneous contracts with two different payment stipulations, “fixed price” and “cost-plus.” In a fixed price contract, the company receives a fixed price for goods and services no matter the cost of production. In a “cost-plus” contract, the government pays the company for the cost of the goods, plus a percentage of its costs as a profit. If the company charges time it spends working on the fixed price contract to the cost-plus contract, it is essentially charging multiple times for the same service. This type of fraud is known as cross-charging.
Improper Cost Allocation: Improper cost allocation occurs when a company has entered into a government contract and a commercial contract at the same time. If the company charges the government for time spent working on the commercial contract, it may be guilty of improper cost allocation and in violation of the False Claims Act.
Product Substitution: In cases of product substitution, a company provides a substitute, and typically inferior, goods rather than the ones contractually agreed upon. If a company substitutes goods without the permission of a government contracting officer, it may be guilty of product substitution and in violation of the False Claims Act.
Other Types of Fraud
The following are among the other types of fraud covered under the False Claims Act:
- Environmental fraud
- Federal student loan fraud
- Government construction fraud
- Government procurement Fraud
- U.S. Customs fraud
- U.S. Postal Service fraud
- SSRI fraud
Studies on SSRI Effectiveness
A new study found in the Journal of American Medical Association examined the results from six antidepressant trials conducted on a total of 718 patients with mild to moderate depression. The study revealed that these drugs worked just as well as placebos in patients with mild to moderate depression, and only showed a substantial effect on those with very severe depression. It is believed that patients with mild forms of depression are often the ones who seek out professional help, though the exact number of patients with milder cases of depression who take antidepressants is unknown. A researcher cited a survey, however, which revealed that 71% of all patients seeking depression treatment had milder forms of the disease.
Report Medicare, Medicaid Fraud
Are you aware of a pharmaceutical company which is knowingly selling an ineffective SSRI? If so, you may be able to file a False Claims Act lawsuit to recoup the money lost through alleged government fraud. While it may be difficult to come forward with your information, our False Claims Act lawyers have a full understanding of the rights afforded to whistleblowers and will work hard to ensure you are fully compensated for your efforts in coming forward.
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