Fraudsters try a variety of methods to swindle the federal government, crossing industries and contracts, often diverting taxpayer funds to line corporate coffers.
Fortunately, the False Claims Act — an old law that still has teeth — broadly prohibits fraud against the federal government and offers a way for courageous False Claims Act whistleblowers to expose it.
For example: A sampling of three cases that were recently resolved illustrate the wide range of how the government can be defrauded and why information from whistleblowers is critical to recover taxpayer money.
- Procurement: An office furniture business (VARI) in Texas agreed to pay $1.1 million to resolve allegations that it knowingly failed to give the federal government the same discounts it gave to other customers, despite a contractual agreement to do so. The whistleblower, a former sales executive represented by Keller Grover, will receive $187,000.
- Pharmaceuticals: A unanimous jury found a long-term care pharmacy (Omnicare, whose parent company is CVS Health Corp.) liable for billing Medicare, Medicaid and TRICARE for more than 3 million false claims, adding up to $135.6 million in damages. Under the FCA, the government is entitled to three times damages ($406.8 million) plus statutory penalties. The damages verdict was one of the largest from a jury in an FCA case. (The company indicated plans to appeal.) The case, based on the pharmacy continuing to fill expired prescriptions, started with two private FCA whistleblower lawsuits that had previously been filed under seal.
- Cybersecurity: A Department of Defense contractor agreed to pay $8.4 million to resolve allegations that Raytheon violated the FCA by not meeting specified cybersecurity requirements as it worked on contracts and subcontracts. The whistleblower, a former engineering director, will get more than $1.5 million under the settlement.
These cases range in size, industry, and outcome (trial or settlement). But all chip away at fraud, and the government offers protections and potential monetary rewards (up to 30 percent of recoveries) to the courageous False Claims Act whistleblowers who bring original information.
Indeed, the government depends on them: Whistleblowers prompted the vast majority of the $2.9 billion in FCA recoveries during the last fiscal year.
Keller Grover has a long history of helping False Claims Act whistleblowers expose wrongdoing. Our whistleblower attorneys can help answer questions, work with whistleblowers to develop prudent next steps, and help to submit stronger whistleblower claims. Thorough submissions will have a better chance of success in encouraging government officials to investigate fraud and obtaining the largest possible whistleblower reward.
If you would like more information, or have a potential case, contact us for a free confidential consultation.