The False Claims Act (FCA) is a federal law that holds individuals and companies accountable when they try to cheat the government. Illinois has an equivalent Illinois False Claims Act. These laws apply when someone knowingly submits false information to get money from the U.S. (or Illinois) government or tries to avoid paying money they owe.
The law encourages people to report and prosecute such fraud. A private person (called a whistleblower or “qui tam relator”) can file a lawsuit on behalf of the government.
If the government joins the lawsuit and wins, the whistleblower can receive 15% to 25% of the money recovered. If the government does not join, the whistleblower may receive 25% to 30%, depending on their contribution to the case.
Anyone who does one of the following may be legally responsible under the FCA:
- Submits a false claim for payment to the government (e.g., billing for services never provided).
- Uses false records or statements to get paid (e.g., lying about meeting contract terms).
- Tries to avoid paying money back to the government using false information (this is called a “reverse false claim”).
- Conspires with others to do any of the above.
You don’t need to prove that the person intentionally wanted to commit fraud. It’s enough if they knew, deliberately ignored the truth, or were recklessly careless about whether the information was false.
For example, the FCA may apply where a doctor bills Medicare for a service that was never performed, a contractor lies about meeting safety requirements in order to get paid, or a hospital uses false financial documents to avoid repaying Medicare money.
The FCA also protects whistleblowers from retaliation. If someone is punished at work (fired, demoted, harassed, etc.) for reporting fraud, the FCA protects them. They may be entitled to: get their job back, receive double back pay with interest, and/or be compensated for emotional distress, legal costs, and other related damages.
If you are aware of companies committing fraud to extract payment from the government, contact Caffarelli & Associates. We will evaluate your situation confidentially and help you determine how best to hold them accountable and assert your rights. Taking action isn’t easy—but with the right legal support, you don’t have to do it alone.
