To Tell or Not To Tell...that is the Question.

In legal terms, one who tattle-tales, is also known as a Whistle Blower.  Although this term has garnered negative connotations, it is usually someone who has some sense of morals and decency standing up to an employer for doing some wrong.

 More specifically, we will discuss a Qui Tam Whistle blower.  Qui tam is a law passed by Congress that allows a private citizen, with knowledge of fraud committed against the federal government, to act as a government whistle blower.  The private citizen is allowed to actually bring about a qui tam lawsuit on behalf of the United States. Most of these lawsuits stem from situations where a company or individual has defrauded the government in some sort of Medicare or pharmaceutical fraud.

A whistle blower who successfully files a qui tam lawsuit is entitled to receive between 15 percent and 30 percent of the lawsuit settlement funds recovered for the government. That's right.  The person who tattle-tales and is successful is actually entitled to a percentage of the funds recovered on behalf of Uncle Sam.  This is important legislation, because a considerable amount (estimates are as high as 10 percent) of the United States annual budget is paid to companies or individuals who defraud the government.  The government is usually overcharged,  paying for submitted bills for services never performed, or over-billed for services provided. Qui tam whistle blower lawsuits include government contract fraud, defense contractor fraud, Medicare fraud, Medicaid fraud, pharmaceutical fraud and other public benefit fraud.

In 2001, the US Department of Justice reported $1.2 billion of the Department's settlements and judgments related to cases filed under the federal whistle blower statute. In the fiscal year October 2000 to September 2001, more than $210 million was awarded to federal whistle blowers. Health care was the largest category of fraud recoveries with the runner-up involving oil and other minerals extracted from public lands.

The Department of Justice states that a record level of recoveries for fiscal year 2001 included the following:

• $22.5 million from the University of California for alleged false claims by UC's five teaching hospitals for reimbursement under Medicare and other federal health insurance programs for services purportedly performed or supervised by faculty physicians rather than by residents without supervision, and for upcoding - the improper assignment of diagnostic codes for the purpose of increasing reimbursement amounts;
  
  
• $15.7 million from Contech Construction for alleged false claims for providing pipe in connection with a Department of Transportation contract that did not conform with contract specifications;
  
  
• $9 million from Gateway for allegedly failing to pass along to the government price reductions required under a multiple award schedule contract for computers and components; and
  
  
• $14 million from Bayer, including $6.2 million on behalf of 45 states for their share of Medicaid payments for prescription costs allegedly inflated by the company's fraudulent practices. 

Whistle blowers are also provided protections in the False Claims Act of 1986.  Such protections are:  entitling the whistle blower to reinstatement with seniority, double back pay, interest, special damages sustained as a result of discriminatory treatment, and attorneys fees and costs, even if the case is never filed, as long as the whistle blower's allegations could legitimately support a False Claims Act case.

The False Claims Act also protects qui tam plaintiffs from being discriminated against by their employer for acts done in furtherance of filing a claim under the Act. These protections have encouraged more qui tam cases.

If you think you have witnessed a violation of the False Claims Act and you are willing to become a qui tam whistle blower, you should first speak to an attorney, like Wendy M. Bowen, Attorney at Law to see if you have a case, determine any deadlines for bringing a legal claim, and assist you with bringing a lawsuit on behalf of the US government to recover damages for fraudulent practices.