What is the False Claims Act?

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In the event that the government is being defrauded, the False Claims Act permits private persons to individuals to file lawsuits on the government’s behalf in order to recover financial damages. These lawsuits are known as “qui tam” actions, and the person bringing the case is known as a “relator.”

For instance, let’s say that a healthcare provider intentionally submits claims to Medicare for services that are not covered and receives payment for those claims. If this fraud action is exposed, the healthcare provider can be held liable in court under the False Claims Act.

If you have knowledge of this type of fraud against the government, you can file a whistleblower claim against the defrauder. This law provides you with a strong incentive to do so. Under the provisions of the False Claims Act, the whistleblower can receive 15% to 30% of the amount recovered by the government. The amount rewarded varies, depending on several factors — including whether or not the government decides to intervene in the case.

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