What the law reaches
The False Claims Act is a federal civil law that makes a person liable for knowingly submitting, or causing someone else to submit, false claims for payment to the government, including through false records or statements. It also reaches what is called a reverse false claim: knowingly avoiding or reducing money owed to the government. Knowledge includes deliberate ignorance and reckless disregard of the truth, so proof of a specific intent to defraud is not required. Many cases involve health care programs, defense and other government contracts, grants, and customs duties. Liability can include a multiple of the government's damages plus a penalty for each false claim, which is why exposure can grow far beyond the amount actually overpaid.
Whistleblowers and the government
A distinctive feature of the law is that a private person, called a relator, can file a case on the government's behalf, known as a qui tam suit, and share in any recovery. The complaint is filed under seal while the Justice Department investigates and decides whether to intervene. The government also brings cases on its own, often after an audit or a referral from an inspector general. Constitutional challenges to the whistleblower provisions have been raised in federal courts, and while the federal appeals courts that have ruled on the main one have rejected it, related questions are still being litigated. Many states, New York among them, have their own false claims laws covering state and local funds, so a single scheme can draw both federal and state attention.
Where to begin
Whether you are an employee who has seen something troubling or a company that has received a demand for documents, the first step is understanding what money is involved, which program paid it, and what the rules required at the time. Our first conversation covers the documents you have, how you came to have them, and whether any deadline is already running. For companies, we consider whether a repayment or disclosure should be weighed and how to preserve records. For individuals, we discuss how the seal works, what it asks of you, and what protections exist against retaliation.
