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Qui Tam

Qui Tam or Whistle-Blower laws have existed in Western cultures for over 600 years. One of the first examples of Qui Tam legislation can be traced back to the Civil War, when Congressional hearings disclosed widespread instances of military contractor fraud that included defective products, substitution of inferior material, and illegal price gouging of the Union Army.

At the urging of Abraham Lincoln, Congress enacted the Civil False Claims Act, including Qui Tam provisions, as a tool to fight fraud. Between 1863 and 1986 the law was seldom used. As a result of 1986 amendments, Qui Tam actions have increased dramatically and have been the most effective and successful means of combating procurement and program fraud. Since 1986, Qui Tam recoveries have exceeded $1 billion with most of the successes involving fraud in Defense and Health Care programs.

The False Claims Act states that whistle-blowers be rewarded with a percentage of the money that the government recovers as a result of their Qui Tam lawsuits. This provision helps encourage people to assist the government in reducing Medicare fraud; defense fraud and other kinds of fraud despite the effect whistle-blowing might have on their jobs and personal lives.

Under the False Claims Act the government may recover up to three times the amount of money it lost as a result of the defendant's fraud. The whistle-blower's share is calculated based upon the amount the government recovers, not the actual losses.

A number of factors determine how much money a whistle-blower will receive if the government is able to recover money from the defendant. If the government joins the case, the whistle-blower is entitled to at least 15 percent but not more than 25 percent of what the government recovers.

If the government declines to join the case and the whistle-blower continues with a suit against the defendant, the whistle-blower is entitled to at least 25 percent but not more than 30 percent of the money the government recovers.

If you are a current or former employee and have information on any illegal activities, please fill out the form at the right for a free case evaluation by a qualified attorney.
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Tax Whistleblower Tips To IRS Skyrocket

Oct 14, 2009 | Parker Waichman Alonso LLP
Tax cheats beware!  It looks like a 2006 law that increased monetary rewards for Federal tax whistleblowers is working.  According to an Internal Revenue Service (IRS) report detailed by The New York Times, tips about suspected tax cheats owing at least $2 million have jumped more than tenfold.According to the IRS Web site, its Whistleblower Office pays money to people who blow the whistle on persons who fail to pay the tax that they owe. If the IRS uses information provided by the...

Justice Department Joins McKesson Whistleblower Lawsuit

Oct 7, 2008 | Parker Waichman Alonso LLP
The U.S. Justice Department has joined a whistleblower lawsuit filed against medical device supplier  McKesson Corp. that charges the company  paid illegal kickbacks and created a fake medical supply company in order to cheat Medicare.  According to The Wall Street Journal, McKesson is one of the nation's largest suppliers of medical equipment, including feeding devices and oxygen supplies.The case against McKesson was filed in federal court in Mississippi by a private citizen...

Amerigroup Settles Medicaid Fraud Charges, Whistleblower Awarded $56.3 Million

Aug 15, 2008 | Parker Waichman Alonso LLP
Amerigroup will pay $225 million to settle charges of Medicaid fraud, the U.S. Justice Department said on Thursday. A former Amerigroup employee, Cleveland Tyson, who filed the original lawsuit against the company, will receive $56.3 million of the settlement under federal whistleblower law. The agreement reached with both the Justice Department and Illinois state officials settles allegations that the Amerigroup's health plans illegally excluded pregnant women and unhealthy patients in the...

Famvir Fraud Alleged in Novartis Whistleblower Lawsuit

Nov 29, 2007 | Parker Waichman Alonso LLP
The value of Famvir, a genital herpes treatment cold sores and shingles, was fraudently inflated by Novartis, charges an ex-employee of the company.  Former Norvatis brand director Carol Shull alleged in her lawsuit-filed in New Jersey state court-that she was wrongfully terminated.  Shull claimed she was fired this past March after complaining repeatedly for nearly two years about attempts by the drug maker to falsely overstate the value of Famvir on its books.  The Swiss...

Toyota, General Motors Named in Whistleblower Lawsuit Charging Managers Tried to Cover Up Defective Cars

Nov 21, 2007 | Parker Waichman Alonso LLP
Toyota and General Motors have been named in a lawsuit that alleges that managers at a California auto plant ignored serious problems, including defective seatbelts and breaking systems,  found in cars rolling off the facility’s assembly line.  The plaintiff, a certified auditor at the plant, accuses her superiors of deleting or downgrading defects from her vehicle reports.  The Toyota and General Motors whistleblower lawsuit also claims that managers retaliated against the...

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