Origins of the False Claims Act
The False Claims Act, which prevents individual fraud against the federal government, is also known as Lincoln’s Law, because it originated during the Civil War under President Abraham Lincoln. Many manufacturers were selling the Union army supplies that they had already purchased, and some were selling inadequate supplies in the first place. Common items sold to the Union army included cavalry horses, blankets, and other military and health supplies. President Lincoln argued for the False Claims Act because it would allow individual citizens to sue corrupt companies on the government’s behalf for committing fraud against the federal government.
The False Claims Act, passed in 1863, included what are called “qui tam” provisions, which allow an individual to act anonymously to help prevent fraud against the government. For about 80 years since its beginning, those who reported fraud, called whistleblowers, had great financial incentive to report fraud, because they were often rewarded with approximately 50% of sustained government damages once they were recovered from the perpetrators. However, in 1943, Congress changed the qui tam provisions and offered less financial benefits to whistleblowers.
There are hundreds of possible cases of fraud against the federal government, but some of the most frequently committed include:
- Tax fraud
- Social Security fraud
- Student loan fraud
- Mail fraud
- Disability fraud
The False Claims Act has been updated and changed several times since its original passing.
Contact Us
If you would like to know more about your rights as a whistleblower, or if you would like to report fraud against the federal government, contact the experienced qui tam attorneys of Tycko & Zavareei, LLP, today at 202-973-0900.
Origins of the False Claims Act
The False Claims Act, which prevents individual fraud against the federal government, is also known as Lincoln’s Law, because it originated during the Civil War under President Abraham Lincoln. Many manufacturers were selling the Union army supplies that they had already purchased, and some were selling inadequate supplies in the first place. Common items sold to the Union army included cavalry horses, blankets, and other military and health supplies. President Lincoln argued for the False Claims Act because it would allow individual citizens to sue corrupt companies on the government’s behalf for committing fraud against the federal government.
The False Claims Act, passed in 1863, included what are called “qui tam” provisions, which allow an individual to act anonymously to help prevent fraud against the government. For about 80 years since its beginning, those who reported fraud, called whistleblowers, had great financial incentive to report fraud, because they were often rewarded with approximately 50% of sustained government damages once they were recovered from the perpetrators. However, in 1943, Congress changed the qui tam provisions and offered less financial benefits to whistleblowers.
There are hundreds of possible cases of fraud against the federal government, but some of the most frequently committed include:
Tax fraud
Social Security fraud
Student loan fraud
Mail fraud
Disability fraud
The False Claims Act has been updated and changed several times since its original passing.
Contact Us
If you would like to know more about your rights as a whistleblower, or if you would like to report fraud against the federal government, contact the experienced qui tam attorneys of Tycko & Zavareei, LLP, today at 202-973-0900.
