The False Claims Act rewards individuals, or "whistleblowers," who bring a legal action against a party who made false claims to the federal government in order to obtain money from the government or to reduce the amount of money they owe to the government. A whistleblower case filed under the False Claims Act is called a Qui Tam action. Qui Tam is short for the Latin phrase "Qui Tam pro domino rege quam pro si ipso in hac parte sequitur," which means "Who sues on behalf of the King, as well as for Himself."

The whistleblower, formally known as the "relator," is usually given between 15 and 30 percent of the amount recovered by the government as an incentive to expose fraud against the United States.

Examples of Fraud

Contracting Fraud
These cases typically involve government procurement fraud where defense contractors overcharge the government for equipment or services or sell defective products to the government that do not meet the requirements of the contract.

Medicare/Medicaid Fraud
A significant part of the cost of Medicare and Medicaid is attributed to fraud. It occurs when health care providers overcharge the government for medical services provided to senior citizens or the poor who are without insurance. Typical cases are where a provider "upcodes" medical service from a low paying procedure to one that pays at a higher rate, or where a drug company fails to give the government the best price at which it sells its medications.

Customs Fraud
The False Claims Act also permits suits for "reverse false claims" where individuals make false statements to avoid paying money to the government. Most Customs fraud falls into this category. Importers commit this fraud by giving false information to obtain a favorable tariff classification, providing false invoices that undervalue their goods, furnishing false certifications to take advantage of trade preference programs, and transhipping goods to avoid antidumping and countervailing duties or quotas. Click here to learn more about Customs Fraud and here to Report Customs Fraud.

The special experience of the attorneys of The Cullen Law Firm, PLLC in international trade, customs law, and Federal court litigation makes the firm well suited to prosecute False Claims Act action. To report fraud against the government, complete our online form here or submit the attached form to falseclaimsact@cullenlaw.com. If you would prefer to discuss this matter, you may leave a message at 888-820-6585, ext. 601 and an attorney will return your call.