The Federal False Claims Act, also know as a qui tam action or “whistleblower action”, was created to prevent persons and corporations from defrauding the government. Under the False Claims Act, 31 U.S.C. §§ 3729-3733, those who knowingly submit, or cause another person or entity to submit, false claims for payment of government funds are liable for three times the government’s damages plus civil penalties of $5,500 to $11,000 per false claim. The False Claims Act was amended in 2006 to include tax fraud. Hospitals, nursing homes, and hospice facilities are just a few of the corporations who routinely defraud the government on a daily basis. Drug companies, oil companies, and defense contractors are others who need oversight but the government needs your help.
If your company is committing fraud against the government, you could be eligble for compensation for the risk and effort of filing a qui tam case. Specifically, the citizen whistleblower may be awarded a portion of the funds recovered, typically between 15 and 25 percent.
False Claims Act lawsuits have resulted in settlements in exess of 26 billion dollars since 1986. In January 2009, the drug company giant Eli Lilly agreed to pay a record $1.4 billion for improperly promoting its drug Zyprexa for off label uses. Corporate fraud is costing U.S. taxpayers and filing a false claims act is the way to end this abuse!
Chuck Mullins, a partner at Coxwell and Associates, handles false claims act cases in Jackson, Hinds County, Mississippi, and all over the state. If you are aware of your company defrauding either the state of federal government, please give Chuck a call to find out way you need to do.
Disclaimer: This blog is intended as general information purposes only, and is not a substitute for legal advice. Anyone with a legal problem should consult a lawyer immediately.