Washington Qui Tam Law Attorneys

Types of Qui Tam Fraud

You already know that a qui tam lawsuit is brought by an individual who chooses to “blow the whistle” on fraud affecting the federal government. But what can constitute qui tam fraud?

Qui tam cases are governed by the federal False Claims Act (31 U.S.C. §3729). Under the False Claims Act, fraud eligible for qui tam litigation includes making false claims of approval or payment; conspiracy to pay or allow a false claim to go forward; delivering or making false receipts for property intended for the government with the intent to defraud; knowingly making false statements in connection to promises or obligations to pay or hand over property or money to the government; failing to fully execute a contract’s obligations; and receiving or purchasing public property that is handed over by an officer or employee of the government, including armed forces personnel, who are not authorized to sell or hand over such property.

These circumstances may seem vague when presented in list form, so let’s look at a few examples of potential qui tam fraud. Overcharging the government is a common type of fraud; for example, a medical facility might file a claim for Medicare assistance for a person who never received such assistance or more commonly might "upcode" the treatment, billing for more services than were actually provided. Substitution of a product or service is another example. A government contractor might knowingly supply a lesser grade of materials than was ordered by the government, but still charge the full amount. Another example is false pricing, in which a contractor or individual charges an inflated amount for goods or services rendered.

Many other cases involve fraud through violation of the promises and representations made at the time of contract formation. Government contracting is complex and usually requires a contract administrator to pay close attention to the company’s sales. Often there are promises made, such as that the product will be produced inside the United States (or countries with which we have free trade agreements), or that the product is sold to the government at the same price as private customers (“"most favored customer price"). Sometimes fraud involves production violations, for example, promises that the production process will involve certain inspections or quality checks, or certain production steps that are ignored or falsified. Another type of fraud is when scientific grant money or public service grant money is spent differently than was promised in the terms of the grant.

Whistleblowers who suspect qui tam fraud should immediately consult with a good lawyer before stepping forward as a relator in a qui tam case. This is partially due to the complexities of qui tam litigation, and partially to protect the whistleblower’s own rights in connection to filing a qui tam case. For example, telling a lot of other people about the fraud is a bad idea, since they could file the case for themselves, even if they only know what you told them. The first to file the case usually recovers the entire reward. Though whistleblowers are protected by United States laws ­ and compensated well when they bring forward a winning qui tam case ­ they can face many questions and possible retaliation when coming forward with a qui tam action. Bringing a case is an important step and should be considered from all sides.

The experienced Seattle Washington qui tam attorneys of Teller & Associates have years of experience with complex qui tam litigation. Not only do they have an impressive track record of qui tam victories, but they have the resources necessary to evaluate, investigate and pursue your qui tam claim. Contact Teller & Associates for a free and completely confidential phone consultation.