According to the U.S. Government Accountability Office (GAO), the federal government made approximately $162 billion in improper payments in 2024. A large portion of these funds went to businesses that overbilled government programs or underpaid obligations they owed. Whistleblowers—often insiders—play a critical role in uncovering this fraud and helping the government recover lost funds. In many cases, whistleblowers are eligible to receive a portion of the recovery.
If you report fraud under the False Claims Act, you’re not only helping to protect public funds—you may also be financially rewarded for your efforts.
What Is the False Claims Act?
The False Claims Act (FCA) is a federal law that empowers the government—and private citizens acting on its behalf—to recover money obtained through fraudulent claims. It imposes liability on individuals or businesses that knowingly:
- Submit false or fraudulent claims for payment to the federal government.
- Use false records or statements to get paid or avoid repaying funds.
- Conspire to commit either of the above acts.
Violators of the False Claims Act may be ordered to pay treble damages (three times the amount of the fraud) plus civil penalties for each false claim.
Common Areas of False Claims Act Violations
The FCA applies in many areas, including:
- Medicare and Medicaid fraud (e.g., billing for services not rendered)
- Defense and construction contracting fraud
- Government loan or grant fraud
- Disaster relief fraud (e.g., FEMA claims)
- Customs and tariff fraud
- Taxpayer-funded research fraud
It also applies when companies attempt to avoid paying money they owe to the government, such as reduced royalties or evaded fees.
The Role of Whistleblowers in FCA Cases
Fraud against the government is rarely self-reported. In most cases, insiders—employees, contractors, or former workers—come forward to expose fraudulent behavior. These individuals, known as whistleblowers or relators, are often in the best position to detect misconduct and provide evidence.
Under the FCA’s qui tam provisions, whistleblowers can file lawsuits on behalf of the government to recover funds lost to fraud.
What Must Be Proven in a False Claims Act Case?
To be liable under the FCA, the defendant must have acted knowingly—meaning they:
- Had actual knowledge that a claim was false,
- Acted with deliberate ignorance of the truth, or
- Showed reckless disregard for the truth or falsity of the claim.
It’s not necessary to prove intent to defraud. Showing that the company ignored clear red flags, billing irregularities, or legal requirements may be sufficient. An experienced whistleblower attorney can help develop evidence to demonstrate the defendant’s mindset and actions.
What Happens After a Whistleblower Files a Qui Tam Lawsuit?
Once a qui tam lawsuit is filed under seal, the Department of Justice (DOJ) has the option to intervene—that is, take over the case. If the government chooses not to intervene, the whistleblower may proceed with the lawsuit independently.
If the Government Intervenes:
- The government leads the case.
- The whistleblower typically receives 15–25% of the recovery, depending on their contribution.
If the Government Declines:
- The whistleblower’s attorney handles the litigation.
- The whistleblower may receive up to 30% of the recovered funds, reflecting the added risk and effort.
Either way, the whistleblower plays a crucial role and stands to benefit from a successful outcome.
Whistleblower Protections and Legal Representation
The False Claims Act includes anti-retaliation provisions that protect whistleblowers from being fired, demoted, harassed, or otherwise punished for coming forward. If you believe you’ve been retaliated against, you may have a separate claim for damages under the law.
Because FCA cases are complex and often involve high stakes, having a knowledgeable attorney is essential. A whistleblower attorney will:
- Help you assess whether your case qualifies.
- File the lawsuit under seal.
- Work with the DOJ (if they intervene).
- Litigate the case and pursue a financial recovery.
Speak With a Philadelphia Employment Lawyer at The Gold Law Firm P.C. Today
If you’ve discovered fraud against the federal government and are considering stepping forward, discuss your options with a Philadelphia employment lawyer at The Gold Law Firm P.C. Call 215-569-1999 or contact us online to schedule a free consultation. We have offices in Philadelphia and Pennsauken, New Jersey, and we serve clients across South Jersey and Southeastern Pennsylvania, including Wilkes-Barre, Scranton, Northeast Philadelphia, Bucks County, Chester County, Delaware County, Lehigh County, Montgomery County, and Cherry Hill.
