Who is a Whistleblower? Anyone who exposes fraud or theft against the Government based upon some inside knowledge. A whistleblower is the courageous person that learns someone is stealing from the taxpayers and puts an end to the wrongful activity. Often, but not always, whistleblowers work for companies who are systematically cheating the Government. Though some use the term “whistleblower” for a person who acts to stop private wrongs (affecting only private companies), the law rewards those who help the Government and offers them special protections against retaliation by their employer.
What is considered a fraud against the Government? It is a fraud when someone lies in order to get money to which they are not entitled. A contractor doing work for the Government who bills for services which they do not actually provide is committing fraud. A doctor or hospital who submits an invoice to Medicare claiming to have spent one hour with a patient whom they only saw for 30 minutes is committing fraud. A manufacturer who sells the Army helmets which it knows are defective is committing fraud. Most forms of intentional or known cheating are considered fraud. Even suppliers who lack actual knowledge of the fraud but who should know that their invoices are wrong can be penalized for over billing.
What rights does a Whistleblower have? A federal law called the False Claims Act provides that a whistleblower is to be paid a percentage of any money recovered by the Government as a result of the whistleblower’s actions. This reward can be truly substantial – amounting to between 15% and 30% of a settlement. A whistleblower is also entitled to be awarded money damages if they prove that they have been punished by their employer (fired, demoted, black-balled, etc.) for reporting the fraud and that they lost wages or incurred other losses as a result of this illegal retaliation.
What are the risks for a Whistleblower? If the case is mishandled, a whistleblower may be denied all compensation whatsoever. This can happen even if the Government gets all of its money back with penalties and interest. Improper disclosures of the investigation or other whistleblowers coming forward first are just two of the many issues that can prevent a recovery. There are also risks to one’s professional reputation if the company being investigated seeks to destroy the credibility of the whistleblower in an effort to avoid liability.
Can’t the Whistleblower just go to the affected Government agency and report the fraud? Yes, but the whistleblower’s rights and the protections of the False Claims Act will probably not be enforced. No money for taking the risk. No protection from retaliation by the employer.
How should a person who wants to stop a fraud being perpetrated against the Government proceed? If you are considering exposing fraud against the Government, you should contact Rawls, Dickinson & Scheer before taking even one more step. Protecting you and your financial security must be your top concern right now and our law firm has substantial experience in helping people navigate the treacherous waters of being a whistleblower.
