Do I get paid for reporting fraud?
Yes, when you you file a case under the False Claims Act that enables the government to discover the fraud and recover federal money, you get paid. Payment for reporting fraud is one of the main incentives the government offers to encourage people not to remain silent. In 2022, the average whistleblower received an award of 18% of the money that they helped the government to recover through the False Claims Act. The Federal government recovered more than $600 Million in Medicare funds that year, which means that the average Medicare whistleblower received more than $324,000 in 2022. Filing a qui tam case through an attorney is one of the best ways to ensure that a report of fraud complies with federal law and enables a whistleblower to be entitled to a portion of any recovery.
Eligibility and Evidence
To qualify for payment for reporting fraud, individuals must present specific and credible evidence of wrongdoing in a court case. The evidence must significantly contribute to the government’s recovery efforts. Successful claims often involve large-scale fraud by a government contractor or long-term Medicare billing procedures by a medical practice.
The Whistleblower Process
The Department of Justice handles whistleblower cases. Whistleblowers must follow specific procedures, including submitting their information through a sealed federal case. Because the case is sealed, it is prevented from being disclosed–even to the defendant. Once a case is on file, the government reviews the whistleblower’s evidence and interviews the whistleblower. Experienced attorneys can assist in crafting strong cases, ensuring that the evidence is well-documented and connected to the relevant laws. This increases the likelihood of the case being investigated and the potential reward being maximized.
Payment for Reporting Fraud
The FCA whistleblower reward program generally involves at least 15% of the amount recovered by the government. However, no reward is issued until the government successfully collects the amounts due. Following precise steps is crucial, as errors can disqualify a whistleblower from receiving a reward.
Detailed Information
Whistleblowers are not entitled rewards merely for calling a hotline or submitting a report directly to a government agency. Instead, whistleblowers generally must consult with an attorney and file a civil suit on behalf of the government, known as a qui tam lawsuit. This legal process is detailed and requires the whistleblower to provide substantial evidence of fraud. It also ensures that a whistleblower is legally protected from potential retaliation by an employer . Successful whistleblower claims require detailed information, often provided by insiders with direct knowledge of the fraud. The government declines to intervene in more than half of cases due to insufficient evidence or amounts at issue. Therefore, it is crucial for whistleblowers to present comprehensive and specific evidence of the fraud.
Fraud Involving Government Money
Rewards are specifically for reporting fraud against government entities. This includes fraud against federal agencies like Medicare, the military, and others. Some states have similar programs for reporting fraud against state governments. The reward amount depends on the actual recovery, which means detailed and specific allegations are critical for higher rewards.
The financial viability of pursuing a whistleblower reward depends on the scale of the fraud. Large fraud cases are more likely to yield substantial rewards. For instance, to receive a reward of $300,000, the fraud typically must involve about $2 million. Once a qui tam lawsuit is filed, the government evaluates the allegations, a process that can take several years. If the government elects to intervene in the case, the whistleblower usually receives a reward between 15 and 25 percent of the recovered amount. Nearly 90% of intervened cases result in a reward to the whistleblower.
Whistleblowers should contact an experienced attorney to evaluate their case and understand the risks involved. Prompt action is crucial, as only the first whistleblower to report is eligible for a reward.
Conclusion
Whistleblowers should contact an experienced attorney to evaluate their case and understand the risks involved. Prompt action is crucial: usually only the first whistleblower to file a case is eligible for a reward. Becoming a whistleblower involves a complex and detailed process, but it can lead to significant rewards for those who provide substantial evidence of fraud. With the help of experienced attorneys, whistleblowers can navigate the legal landscape and potentially earn a portion of the recoveries made by the government.
