Recovery for Employees Under the Whistle Blower/False Claim Act

The federal government has long recognized that whistleblowers can play an important role in calling out corruption in both the private and public sectors. That's where the False Claims Act can be utilized.

Originally passed during the Civil War, the False Claims Act both protects and incentivizes whistleblowers. It is designed to encourage those with knowledge of fraud against the federal government to come forward and report it.

It does so by offering financial incentives. Under the FCA, a whistleblower (known in legal terminology as a "relator") can file a legal claim against a private company in the name of the federal government, which then has 60 days to determine if it will pursue the claim. If the federal government decides to pursue a claim, the relator is entitled to a percentage of the recovery.

If it does decide to intervene in the case, the relator and his or her attorney can elect to pursue the claim, and the relator receives a portion of those damages- usually between 15 and 25 percent.

The FCA also provides legal protections for whistleblowers against retribution. But actually taking advantage of these incentives and protections requires a complete understanding of your legal rights under federal law.

• When a party knowingly presents a false claim or fraudulent claim for payment to the government;
• When a party knowingly makes a false claim or false record to get a fraudulent claim paid;
• When a party conspires to submit a false claim or statement to attempt to get a fraudulent claim paid;
• When a party knowingly deprives the government of money that the party knows the government is due.

• Fraud in the Health Care Industry: Federally Subsidized Medical Service Areas, such as Medicare, Medicaid and Social Security. False Claims can commonly occur in the hospital setting or private health care provider setting.
• Fraud with Federal Contractors: Military Contracts, Research Grants, and other areas where the government contracts with private companies.

If you've witnessed unethical or illegal behavior from your company and you're considering blowing the whistle, don't let fear stop you. Our false claims lawyers can protect you. Please call the Shealey Law Firm, LLC for a free consultation. Our office is centrally located in Columbia and Charleston, South Carolina, but we help clients from across the state.