False Claims Act

 

We the people are the rightful masters of both Congress and the courts, not to overthrow the Constitution, but to overthrow the men who pervert the Constitution.”

–Abraham Lincoln

 

The False Claims Act (FCA) was passed when Abraham Lincoln was President of the United States, and for this reason it is known as “Lincoln’s Law.” The FCA is a federal statute designed to combat and recover damages for fraud against the United States government. It permits private citizens who are aware that the federal government is being cheated or defrauded in some way to file a lawsuit. Such whistleblowers can be awarded substantial compensation for blowing the whistle. In order to be a whistleblower who can recover, you must file your claim in a timely fashion and you must have knowledge of the false claim from a private source (not from the newspaper). Examples of false claims include:

  •      Supplying the government with defective or inferior goods or services;
  •      Billing or overbilling the government for services or goods not provided;
  •      False statements to the government concerning compliance with federal and state programs;
  •      Tax evasion by individuals or businesses;
  •      Providing kickbacks or bribes to government officials; and
  •      Manipulation or rigging of bids for procurement contracts.

The FCA includes an anti-retaliation provision that protects employees, contractors and agents who are “discharged, demoted, suspended, threatened, harassed, or in any other manner discriminated against in the terms and conditions of employment because of lawful acts done by the employee, contractor, agent or associated others in furtherance of an FCA action or an attempt to stop a false claim from being asserted against the government.

Relief for whistleblowers can include reinstatement with the same seniority status that employee, contractor, or agent would have had but for the discrimination, two times the amount of back pay, interest on the back pay, and compensation for any special damages sustained as a result of the discrimination, including litigation costs and reasonable attorneys’ fees.