Understanding Whistleblower Rights Under the False Claims Act
Fraud against the government—whether in healthcare, defense contracting, or emergency aid programs—costs taxpayers billions of dollars each year. The False Claims Act (FCA) empowers private citizens to help stop this fraud by filing lawsuits on the government’s behalf. These cases are known as qui tam actions, and the individuals who come forward are called whistleblowers or relators.
At Good Pine, we represent whistleblowers who have the courage to step forward when they witness wrongdoing. This article explains how whistleblower cases under the False Claims Act work, what protections exist, and why these individuals play a vital role in safeguarding public funds.
1. The False Claims Act: The Legal Foundation
The federal False Claims Act, codified at 31 U.S.C. §§ 3729–3733, is one of the government’s most powerful tools to combat fraud.
31 U.S.C. §§ 3729–3733 – False Claims Act (U.S. Code)
Key provisions include:
§ 3729 – Defines what constitutes a false claim
§ 3730(b) – Authorizes private individuals (relators) to bring qui tam actions
§ 3730(d) – Provides for whistleblower awards of 15–30%
§ 3730(h) – Protects whistleblowers from retaliation
2. What Is a Qui Tam Lawsuit?
“Qui tam” comes from a Latin phrase meaning “he who sues on behalf of the King as well as for himself.” Under the FCA, private citizens can file lawsuits alleging that a person or company defrauded the government—for example, by:
Billing for services not provided
Overcharging or double billing
Submitting false information to obtain contracts or grants
Paying or receiving illegal kickbacks
If successful, the whistleblower may receive 15–30% of the amount recovered by the government.
3. How the Process Works
Confidential Filing: The case is filed under seal in federal court and remains confidential while the government investigates.
Government Investigation: The Department of Justice (DOJ) and relevant agencies review evidence, interview witnesses, and determine whether to intervene.
Government Decision: The government may intervene and take over the case, or decline, allowing the relator to proceed independently.
Resolution and Reward: If the case results in a settlement or judgment, the whistleblower receives a share of the recovery.
4. Protection Against Retaliation
Section 3730(h) of the FCA protects whistleblowers from retaliation such as termination, demotion, or harassment.
Remedies include:
Reinstatement
Double back pay
Compensation for damages and attorney’s fees
5. Common Areas of False Claims Act Violations
Healthcare and Pharmaceuticals: False Medicare/Medicaid claims, kickbacks, off-label promotion
Government Contracting: Inflated costs, misrepresentation of materials or compliance
Financial Services: Misuse of programs like FHA, TARP, or PPP loans
Education and Research: False certifications for grants or student aid
Example:
A billing manager at a hospital discovers management is inflating Medicare claims. After consulting counsel, the manager files a sealed qui tam suit; the government recovers $10 million, and the whistleblower earns 20%.
6. Kickbacks and the False Claims Act
The False Claims Act (FCA) also covers schemes involving kickbacks—any situation where a person or company offers, pays, solicits, or receives “anything of value” in exchange for business connected to federal programs.
Kickbacks can take many forms, from direct payments to more subtle benefits such as free services, gifts, or preferential treatment. Even if disguised as “consulting fees” or “marketing support,” such arrangements may violate federal law when the intent is to influence decisions involving government funds.
Two key federal statutes govern this area:
The Anti-Kickback Statute (42 U.S.C. § 1320a-7b(b)), which makes it a crime to offer or receive anything of value to induce referrals in federal healthcare programs such as Medicare or Medicaid.
The Stark Law (42 U.S.C. § 1395nn), which prohibits physicians from referring patients for certain designated health services to entities with which they have a financial relationship.
Violations of these laws often serve as the basis for False Claims Act cases, since any claim submitted to the government that arises from an unlawful kickback can be deemed “false or fraudulent.”
Examples include:
A laboratory paying physicians bonuses or providing free equipment in exchange for Medicare test referrals
A pharmaceutical company giving doctors “speaker fees” or travel perks to promote prescriptions
A defense contractor offering gifts or commissions to secure government procurement deals
Courts interpret “anything of value” broadly to include not only money, but also entertainment, meals, travel, discounts, employment opportunities, charitable donations, or any other benefit intended to influence decision-making. Even modest recurring benefits can constitute illegal kickbacks if they affect federal program decisions.
The Department of Justice (DOJ) and the Office of Inspector General (OIG) actively pursue kickback violations, and whistleblowers who expose these practices may receive a percentage of the government’s recovery under the FCA. Reporting kickbacks plays a vital role in preserving fairness, integrity, and accountability in federally funded programs.
7. COVID-19 Relief Fraud and Whistleblower Actions
The COVID-19 pandemic triggered unprecedented government spending through programs like the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, and Provider Relief Fund (PRF).
Unfortunately, some applicants abused these funds, submitting false certifications or diverting relief money for personal use.
Common examples include:
False payroll or employee-count certifications in PPP loan applications
Spending loan proceeds on luxury goods or unrelated expenses
Misusing EIDL funds for non-business purposes
Inflated COVID-19 testing or treatment claims by healthcare providers
The Department of Justice continues to prioritize COVID-19 fraud enforcement under the False Claims Act (31 U.S.C. §§ 3729–3733). Many of these cases began with whistleblowers—employees, accountants, or business partners who refused to look the other way.
If you suspect that pandemic relief funds were obtained or used fraudulently, you may have a valid qui tam claim. Reporting the misconduct not only protects the public but may also entitle you to a significant financial reward.
8. Why Whistleblowers Are So Important
Whistleblowers are often the only insiders capable of exposing fraud. Their courage protects taxpayer dollars, deters future misconduct, and strengthens trust in public programs.
Congress designed the FCA to reward honesty and ensure that truth-tellers are protected, not punished.
9. How Good Pine Can Help
At Good Pine, we help whistleblowers navigate the complexities of the False Claims Act. We:
Evaluate claims confidentially
File sealed complaints in federal court
Collaborate with the DOJ during investigations
Protect against retaliation
Advocate for maximum whistleblower awards
If you believe you’ve uncovered fraud involving government funds—whether in healthcare, defense, or COVID-19 relief programs—contact Good Pine P.C. to schedule a confidential consultation.
Relevant Federal Statute
False Claims Act – 31 U.S.C. §§ 3729–3733
Disclaimer
This article is provided for general informational purposes only and should not be construed as legal advice. Reading it does not create an attorney–client relationship with Good Pine P.C. or any of its attorneys.
Qui tam and whistleblower cases involve complex factual and legal considerations, including jurisdictional rules, statutory deadlines, and the discretion of the U.S. Department of Justice. The outcome of any case depends on its specific facts, supporting documentation, and the government’s evaluation.
You should not act or refrain from acting based on this article without obtaining individualized legal advice from a qualified attorney. To discuss your situation confidentially, please contact Good Pine P.C. directly.
