News
Whistleblower Lawsuits: Get Award for Uncovering Fraud on the Government
06/30/19
Being a “whistleblower” may have pejorative connotations, but it may also be very profitable to one who has insider knowledge of fraud against federal, state or city government and wants to help the government.
Government contracts awarded to private companies sometimes reach tens and hundreds of millions of Dollars. Given their size and occasional lax supervision by government officials, there is tremendous potential and temptation for fraud, which can likewise reach millions of Dollars. If you are the first to “blow the whistle”, you may receive up to 30% of the amounts recovered by the government as a result of your efforts.
Whistleblower lawsuits are brought under the federal False Claims Act or its state or New York City equivalent and seek to recover government funds wrongfully paid out to individuals, companies or agencies that submitted false claims or who made false certifications in bills, contracts or other government documents. Such statutes allow people who are not affiliated with the government – generally, employees or former employees of the government contractors with insider knowledge of fraud – to file actions against such federal contractors claiming fraud against the government. Whistleblower actions typically involve the construction industry, Medicare/Medicaid funded programs, social programs, or other government spending programs.
Similarly, if you have information that your employer engages in tax fraud (such as: hiding revenue, paying numerous employees in cash, or taking kickbacs from employees), you may approach the Internal Revenue Service with specific information of tax impropriteties and in certain circumstances receive a reward – a portion of the taxes, interest and penalties that the IRS recovers of up to 30%.
It is advisable to file so-called “whistleblower” lawsuits as quickly as possible because only the first person to alert the government of fraud may receive the reward.
