Federal False Claims Act

The Federal False Claims Act is an extremely important and essential tool in fighting government-targeted fraud. Although the Federal False Claims Act was initially enacted by Congress over one hundred fifty years ago during the Civil War in an effort to fight fraud, it has been significantly refurbished after exposure of corruption in the defense contracting industry and has become a highly effective tool in recovering money that has been pilfered from the U.S. government (and therefore the taxpayer). The federal government has been able to recover a surplus of $40 billion through cases that have been filed. Amazingly, around one-half of this has come from health-care related cases.

The federal government often lacks information and resources to not only discover all who are committing fraud against the government, but to also be able to pursue each and every person, or entity, doing so. Thus, they came up with a solution. Under the qui tam provisions of the False Claims Act, any person or entity is able to file a lawsuit on behalf of the Federal Government. The whistleblower , or Relator, plays an essential role in the success of the lawsuits brought by shining light on fraud that would have otherwise gone unnoticed or undetected. These courageous people, or entities, have been rewarded over $2 billion for their part in helping to stop corruption and deceit of the federal government.

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