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Qui Tam
And
Its Implications
Qui
Tam is one of the most powerful legal tools for preventing widespread
government fraud in the United States.
Basically, it gives
every citizen with knowledge of fraud against the government the power
to these individuals or entities, and to receive a portion of the
recovery as a reward.
The Purpose
- Qui
Tam, often referred to as whistle blowing (or whistle blower) is an old
idea, but Congressional amendments passed in 1986 have
enhanced its reach and power.
- Basically,
the Government
understands that it cannot efficiently keep an eye on all of its
contractors to ensure there is no widespread fraud taking
place.
- In fact, with so many
contractors, it can actually be
much easier to defraud the Government than a private company.
- An example is the recent wartime activities
in the Middle
East. Recent investigations uncovered rampant fraud by parts
contractors, totaling millions upon millions of dollars in
losses.
Because of instances like
these,
the Government arms private citizens with the ability to act on its
behalf. This way, if an individual becomes aware of fraud
taking place, they are much more inclined to take action.
And
as added incentive, the Government will share a percentage
of the
profits with the whistle blower. In this way, the Government
is relying on an army of private citizens to keep an eye out and ensure
that public money is not wasted unnecessarily.
Who
Is Eligible
- Basically, to be
eligible to file a
suit on behalf of the government, an individual must have specific
knowledge of the alleged fraud.
- The
most common types of Qui
Tam plaintiffs are employees, former employees, competitors,
subcontractors, and local governments.
- Most
often, the
individuals with intimate knowledge of the fraud are employees of the
company in question. Qui Tam law allows these individuals to
act as whistle blowers without fearing repercussions for their
actions.
- Additionally, these
individuals are offered monetary
incentive to blow the whistle on their employees.
Public
interest groups also frequently utilize Qui Tam to protect public
interests. However, it is sometimes more difficult for these
private groups to have direct and independent knowledge of the alleged
infractions.
The
Process
- After a
suit is filed, the Department of Justice will have 60 days to
investigate the claim and determine if legal action is necessary and
justifiable.
- The person who
filed the suit will likely be
interviewed at length during this time to determine the legitimacy and
substance of the claim.
- If the
Government determines that
there is substantial evidence for a case, then they will most likely
involve a local legal system.
- The
individual or
group filing the claim will receive a minimum of 15% of all recovered
monetary assets and a maximum of 30%, as outlined by the 1986 Amendment
to the False Claims Act.
- The
amount the individual receives
will probably depend on the level of involvement by the
Government. If the Government joins the case and prosecutes
it successfully, the individual will likely receive a lower
percentage.
- If the individual
prosecutes the case
individually, he or she will likely receive a higher share.
For
further information on employee
rights, such as the qui
tam section here, please be sure to check out
the following
areas:
Similar to the employee rights, employers also have
responsibilities and rights. To learn more about this, check
out the employer
liability insurance section.
And don't forget to check out the various employment
background screening sections, especially if you are
interested in federal
government jobs.
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