Among other things, the United States is the country’s largest landlord. The federal government manages millions of acres in national parks and forest lands. While part of that management involves overseeing the millions of visitors to these spaces each year, these public lands also contain valuable reserves of minerals and energy sources like coal, natural gas and oil. Private companies frequently enter into leases with the government for the right to mine or drill those resources which are scattered all around the country. In exchange, they agree to pay royalties to the government for whatever they extract from the public land. Royalty payments pursuant to these leases can amount to billions of dollars in revenue for the federal government. In fiscal year 2012 the federal government collected $12 billion in royalties for just oil and natural gas.
Some companies have been accused of misrepresenting or falsifying how much they owe the government in royalties to increase their own profit margins under these already lucrative lease arrangements. When private companies who agree to pay royalties in exchange for drilling and mining rights fail to pay the government what it is due, it can be a fraud on the government because the False Claims Act specifically identifies liability for any person who “knowingly conceals or knowingly and improperly avoids or decreases an obligation to pay or transmit money or property to the Government.” (31 USC § 3729(a)(1)(G))
If you believe someone has knowingly committed fraud against the government and you would like to learn more about or would like to bring a whistleblower lawsuit, the qui tam lawyers at Keller Grover LLP can help you. These whistleblower lawyers understand qui tam litigation, including the whistleblower protection provisions, and strive to achieve the best possible results for their clients.