A whistleblower can take many forms, including an employee or even a competitor. While employees may fear retaliation if they come forward with information on fraud, the law protects these brave people if they decide to come forward. In addition to protections, the government provides significant rewards that encourage people with real information to come forward.
Whistleblowing is when a person comes forward with information to expose fraud or illegal activity within a private, public or government organization. The wrongdoers usually are in violation of public law or could potentially damage a large number of individuals. Whistleblowers are usually members within the organization that has been alleged in the wrongdoing. However, there are examples of competitors coming forward with whistleblower information.
Anyone with knowledge of past or present fraud information can file a qui tam or whistleblower lawsuit. The whistleblower, or relator, doesn’t have to personally be harmed to bring a suit on behalf of the U.S. government.
President Lincoln introduced The False Claim Act and passed in 1863 by a Congress concerned that suppliers of goods to the Union Army during the Civil War were defrauding the Army. The FCA provided that any person who knowingly submitted false claims to the government was liable for double the government’s damages plus a penalty of $2,000 for each false claim. Since then, the FCA has been amended several times.
Whistleblowers serve a higher purpose in American patriotism. Not only can their acts protect the government, but they can also protect the American people by exposing government officials for acts that violate civil rights and the constitution. The False Claim Act is an incentive of the act of blowing the whistle on wrongdoing. The law sets a high percentage for awards in that law for the purpose to incentivize whistleblowers to come forward.
Whistleblowers often keep their identities secret because they fear retaliation from the powerful people or organizations they are blowing the whistle on. As a result, whistleblowing does not come without risk. If the whistleblower is employed by an organization they risk losing their job, demotion, suspension, and denial of promotion. In more extreme cases, they may even face personal threats, such as:
Because of the personal risks they face, whistleblowers are often hesitant to come forward. However, whistleblowing is necessary to ensure tax dollars are not being wasted as well as to prevent other abuses and fraud. The first step to overcome these challenges is by providing the whistleblower with adequate protection and rewards.
The most popular incentive offered to whistleblowers is a financial award. The government provides incentives to get information that could allow the government to collect against fraudsters. Several programs provide financial awards to successful whistleblowers. Some of these include:
However, the information provided must be solid information. An “educated guess” or unsupported speculation doesn’t suffice for this reward.
There are two types of rewards:
The compensation that whistleblowers may receive varies from case to case. Some of the factors that may affect the compensation a whistleblower may be eligible for includes the following:
If you believe that you have information on a business or contractor defrauding the government, you should speak with a qualified Whistleblower Attorney. There are significant protections that an attorney can ensure you get while you go through a Qui Tam case.
The Carlson Law Firm is a veteran-owned-and-operated law firm that stands for justice. We take government fraud seriously. Contact us today to schedule a free consultation.
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