Difference between revisions of "False Claims Act"

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The False Claims Act penalizes those who submit or cause to be submitted false or fraudulent claims to the government for payment. It also penalizes those who make or use false statements to get a false or fraudulent claim paid.
The False Claims Act penalizes those who submit or cause to be submitted false or fraudulent claims to the government for payment. It also penalizes those who make or use false statements to get a false or fraudulent claim paid.


False Claims Act relators are eligible to receive 10% to 30% of the recovery.  In an intervened case, the relator can obtain 15% to 25% of the recovery, depending upon the extent to which the person substantially contributed to the prosecution of the action.
False Claims Act relators are eligible to receive '''10% to 30% of the recovery.''' In an intervened case, the relator can obtain 15% to 25% of the recovery, depending upon the extent to which the person substantially contributed to the prosecution of the action.


In a non-intervened case, the relator can obtain between 25% to 30% of the recovery.  Additionally, a relator who prevails in an FCA action—regardless of whether the government intervenes—is entitled to “reasonable expenses which the court finds to have been necessarily incurred, plus reasonable attorneys’ fees and costs.” 31 U.S.C. § 3730(d).  Qui tam whistleblower lawsuits have enabled the government to recover more than $40 billion.
In a non-intervened case, the relator can obtain between 25% to 30% of the recovery.  Additionally, a relator who prevails in an FCA action—regardless of whether the government intervenes—is entitled to “reasonable expenses which the court finds to have been necessarily incurred, plus reasonable attorneys’ fees and costs.” 31 U.S.C. § 3730(d).  Qui tam whistleblower lawsuits have enabled the government to recover more than '''$40 billion.'''
 
The False Claims Act also protects whistleblowers from retaliation.


The False Claims Act also [https://www.zuckermanlaw.com/false-claims-act-whistleblower-retaliation-lawyer/ protects whistleblowers from retaliation].


The [https://www.zuckermanlaw.com/sp_faq/qui-tam-lawsuit/ qui tam provisions of the False Claims Act] have been enormously effective in enlisting private citizens to combat fraud against the government.  Qui tam whistleblowers, also known as relators, have enabled the government to recover more than '''$60 billion'''.  In fiscal year 2017 alone, qui tam actions brought by whistleblowers resulted in '''$3.4 billion in settlements''' and judgments, and the government paid '''$392 million in whistleblower awards''' to False Claims Act whistleblowers.
The [https://www.zuckermanlaw.com/sp_faq/qui-tam-lawsuit/ qui tam provisions of the False Claims Act] have been enormously effective in enlisting private citizens to combat fraud against the government.  Qui tam whistleblowers, also known as relators, have enabled the government to recover more than '''$60 billion'''.  In fiscal year 2017 alone, qui tam actions brought by whistleblowers resulted in '''$3.4 billion in settlements''' and judgments, and the government paid '''$392 million in whistleblower awards''' to False Claims Act whistleblowers.


A '''qui tam whistleblower''' can be eligible for a large recovery.  But there are many pitfalls and obstacles to proving liability, and there are unique rules and procedures that govern qui tam whistleblower cases.  Therefore, it is critical to retain an experienced False Claims Act whistleblower lawyer to maximize your recovery.
A '''qui tam whistleblower''' can be eligible for a large recovery.  But there are many pitfalls and obstacles to proving liability, and there are unique rules and procedures that govern qui tam whistleblower cases.  Therefore, it is critical to retain an experienced False Claims Act whistleblower lawyer to maximize your recovery.
=='''Examples of False Claims Act Violations'''==
Examples of the type of fraud that can qualify for a ''qui tam'' whistleblower award or bounty include:
*Paying kickbacks [https://www.zuckermanlaw.com/sp_faq/violation-anti-kickback-law-also-violation-false-claims-act/ to refer patients] for services that will be reimbursed by Medicare
*[https://www.zuckermanlaw.com/sp_faq/false-claims-act-prohibit-fraudulent-inducement-contract/ Fraudulently inducing a contract], i.e., making false representations to induce the government to enter into a contract
*[https://www.zuckermanlaw.com/sp_faq/false-claims-act-prohibit-bid-rigging/Bid rigging]
*[https://www.zuckermanlaw.com/sp_faq/can-violation-good-manufacturing-practices-give-rise-false-claims-act-liability/ Violating good manufacturing practices]
*[https://scholar.google.com/scholar_case?about=7153274485431199107&hl=en&lr=lang_en&as_sdt=20000006&as_vis=1 Double-billing Medicare]
*Defective pricing, including noncompliance with the requirement to submit current, accurate and complete certified cost and pricing data under the Truth in Negotiations Act
*Inaccurate disclosure of pricing information and practices, such as Hewlett-Packard’s [https://www.justice.gov/opa/pr/hewlett-packard-agrees-pay-united-states-55-million-settle-allegations-fraud $55 million settlement] for providing incomplete commercial sales practices information to GSA contracting officers during contract negotiations and Informatica LLC’s [https://www.justice.gov/opa/pr/informatica-agrees-pay-2157-million-alleged-false-claims-caused-its-commercial-pricing $21.57 million settlement] to resolve allegations that it provided false information concerning its commercial discounting practices for its products and services to resellers, who then used that false information in negotiations with GSA for government-wide contracts.
*Billing Medicaid for unnecessary medical services
*Overbilling for services performed, such as Northrop Grumman’s [https://www.justice.gov/opa/pr/northrop-grumman-systems-corporation-pay-2745-million-settle-false-claims-act-allegations $27.45 million settlement] for overstating the number of labor hours its employees worked on two Air Force contracts by individuals stationed in the Middle East.
*Providing defective products, such as Sapa Profiles Inc.’s [https://www.justice.gov/opa/pr/aluminum-extrusion-manufacturer-agrees-pay-over-46-million-defrauding-customers-including $34.6 million settlement] to resolve claims that it falsified thousands of certifications after altering the results of tensile tests designed to ensure the consistency and reliability of aluminum.
*Falsifying admission criteria and regularly diagnosing patients with “disuse myopathy,” an invented medical term meaning generalized weakness, in order to qualify for higher levels of reimbursement as an Independent Rehabilitation Facility (IRF).  *Encompass Health paid [https://www.justice.gov/opa/pr/encompass-health-agrees-pay-48-million-resolve-false-claims-act-allegations-relating-its $48 million] to resolve allegations that some of its IRFs provided inaccurate information to Medicare to maintain their status as an IRF and to earn a higher rate of reimbursement and that some admissions to its IRFs were not medically necessary;
*Creating a fraudulent joint venture to secure government contracts that are set aside for businesses that participate in the Service-Disabled Veteran-Owned Small Business program.  In 2019, A&D General Contracting agreed to pay approximately [https://www.justice.gov/usao-sdca/pr/san-diego-contractor-sentenced-defrauding-federal-agencies-agrees-pay-32-million $3.2 million] for fraudulently obtaining over $11 million in government contracts which had been set aside for service-disabled veteran-owned small businesses.
*Violating the federal Anti-Kickback Statute and the FCA by billing millions of dollars for unlawfully forcing patients to endure 72-hour hospital stays for observation and mental illness treatment against their will.  Pacific Health Corp. paid $16.5 million to settle claims that it doled out kickbacks for referrals of homeless patients and provided them with unnecessary treatments.
*Making improper payments to doctors to get them to write prescriptions for two Teva products. In 2020, Teva agreed to pay [https://www.bizjournals.com/philadelphia/news/2020/01/06/teva-agrees-to-pay-54m-to-settle-whistleblower.html $54M to settle a qui tam case] alleging that it paid doctors speaker fees and pricey to prescribe multiple sclerosis drug Copaxone and Parkinson’s disease drug Azilect.
*Paying doctors and kickbacks or financial incentives to get patient referrals.  In 2020, Agnesian HealthCare paid [https://www.fdlreporter.com/story/news/2020/01/06/agnesian-healthcare-pay-10-million-whistleblower-lawsuit/2824811001/ $10M to settle a qui tam case] alleging that its compensation plan for doctors violated the Stark Law, the Anti-Kickback Statute, the federal False Claims Act and the Wisconsin False Claims by rewarding and offering incentives to its network of affiliated doctors to refer Medicare and Medicaid patients exclusively to Agnesian doctors and facilities.
*[https://www.justice.gov/usao-mdfl/pr/villages-dermatologist-agrees-pay-more-17-million-settle-false-claims-act-liability Upcoding in the form of billing for 14,000-level tissue transfers], which should have been billed as lower-level wound repairs.
*Making misrepresentations regarding certified cost or pricing data in violation of federal procurement laws and regulations.  See 10 U.S.C. 2306a; 41 U.S.C. Chapter 35; FAR 15.403-4 and 15.403-5.