False Claims Act

What is the False Claims Act?:

“Qui tam,” is an abbreviated form of the Latin legal phrase ‘qui tam pro domino rege quam pro se ipso in hac parte sequitur’ (“he who brings a case on behalf of our lord the King, as well as for himself”). A qui tam action, brought under Federal False Claims Act, 31 U.S.C. §§ 3729-3733, is an American federal law that allows people to file actions against companies and individuals that have defrauded the federal government. Similarly, many states nationwide have their own False Claims Act laws that serve the same function where the state or even local governments have been defrauded.

How the Law Works:

These claims are brought by a “whistleblower” who has information that the company or individual is defrauding the government. Such person is called a “Relator.” While many relators are employees or former employees of companies that commit fraud, anyone who knows of an instance where the government has been defrauded can file a qui tam lawsuit. That could be, for example, a competitor, a customer, a subcontractor, an analyst, or even a patient. Persons filing under the False Claims Act stand to receive a portion of any recovered damages, (ranging from 15 to 30 percent, depending on various circumstances). In a False Claims Act lawsuit, the relator files the complaint under seal, meaning it is not available to the public, and presents the complaint, along with supporting documentation, to the government. Because the complaint is under seal, it cannot be discussed with anyone except the government officials investigating the case. Even the defendants charged with committing the fraud are not told about the lawsuit.

The Attorney General then has sixty days (with extension requests permitted and routinely requested and granted), to decide whether the government wishes to intervene in the matter and pursue the lawsuit. At the end of the sealed investigative period, the government decides whether to join, or intervene, in the qui tam lawsuit. If the government joins the case, the litigation is conducted jointly by the government and the whistleblower’s attorney, with the government as lead counsel. If the government declines to intervene, the relator may go forward with the lawsuit and assumes primary responsibility for running the case. The False Claims Act specifically protects whistleblowers from retaliation by their employer.

The timing of a lawsuit can be critical. The first person to file a case under the False Claims Act for a particular fraud preempts all other cases. So if you plan to bring a case, it is important to do so before another whistleblower beats you to the courthouse. Potential whistleblowers also should keep in mind that the False Claims Act has a statute of limitations that may be as short as six years. The information a whistleblower brings cannot be information that is already known to the public unless the whistleblower is an original source of the information.

The Ferraro Law Firm’s Qualifications to Handle your Qui tam Lawsuit:

The Ferraro Law Firm employs four former federal prosecutors with a combined 45 years experience in the Department of Justice at the United States Attorney’s Office for the Southern District of Florida. This includes Jeffrey H. Sloman, whose distinguished 20 year career as a federal prosecutor included being the United States Attorney for the Southern District of Florida in his final year of service. The United States Attorney is the district’s chief law enforcement officer whose responsibility is to enforce and defend the laws of the United States. The Southern District of Florida is the third largest federal prosecutor’s office in the United States. Prior to serving as United States Attorney, Mr. Sloman served as the district’s Criminal Division Chief and First Assistant United States Attorney, the number 2 and 3 positions in the Office. Alan B. Kaiser served twice as Chief of the Major Crimes Division and also as Deputy Chief of the Narcotics Division. During their careers as federal prosecutors, Mr. Sloman and Mr. Kaiser, along with Melissa Damian Visconti handled a wide array of complex and high profile cases, including white-collar fraud in the areas of health-care and securities fraud, as well as national security matters, amongst others.

If you believe you have information about a company or individual who is defrauding either the federal government or a state or local government, please contact the Ferraro Law Firm.