False Claims Act

The False Claims Act was passed in 1863 to allow ordinary citizens to sue third parties for fraud against the government. Typically these third parties are federal contractors that are engaged in activity in which they are illegally taking funds or avoiding proper payment to the government. In return for reporting these false monetary claims, the citizen receives a percentage of the money recovered in the case. The idea behind the False Claims Act is that a citizen can report fraudulent activity to help the government and be rewarded for doing so.

Potential Sources of Fraud

Any federal contractor or other third party that receives government spending or provides the government with services could potentially be involved in fraud against the government. One of the greatest sources of fraud that has existed since the False Claims Act was passed is war profiteering by defense contractors. Military operations mean big business for contractors, and when these contractors take advantage of their contract with the federal government they may be guilty of fraud.

Another major source of fraud is the health care industry. Health care companies, insurance companies, hospitals, and even individuals may be exposed for committing fraud against the state. Acts of fraud may range from improper use of government funding to making false medical claims.

Anyone who steps forward as a whistleblower to report a case of fraud against the government may be eligible to benefit under the U.S. False Claims Act.

Contact Us

If you have information on fraudulent activity being committed against the federal government, contact the experienced Qui Tam lawyers of Tycko & Zavareei, LLP, today at 202-973-0900 to discuss your case.