What is a Whistleblower?

Whistleblowers are people who alert the government to fraud being committed by their employers, or an organization with whom they work as a contractor or an agent.

Are There Protections for Whistleblowers?

Employees who want to report fraud in the workplace may worry about whistleblower retaliation by their employer, who may punish or fire them. 

However, federal law protects against whistleblower retaliation. The Legal Information Institute at Cornell University explains that “the False Claims Act is a federal statute setting criminal and civil penalties for falsely billing the government, over-representing the amount of a delivered product, or under-stating an obligation to the government.” 

The Justice Department, as well as private individuals (known as a qui tam action), may enforce the False Claims Act. 

The False Claims Act protects employees, contractors, and agents who serve as whistleblowers from retaliation. So, if a whistleblower brings a claim against a company, they cannot be “discharged, demoted, suspended, threatened, harassed, or in any other manner discriminated against in the terms and conditions of their employment.”

What are Common Types of Fraud?

Examples of fraud covered by the False Claims Act are Medicare or Medicaid health care billing fraud, government procurement and military contract fraud, SEC corporate fraud, and IRS tax fraud.

Because of the range of types of fraud, fraud can occur in many industries.

What Qualifies as Medicaid/Medicare Fraud?

Healthcare fraud can include instances like the following:

• Fraudulent upcoding in medical billing
• An ambulance company claiming emergency services for a simple transport or entering into a kickback arrangement with hospitals
• Overcharging for medical goods or healthcare services
• Kickback or illegal referral arrangements between providers
• Providing services that are not medically necessary
• Claiming and billing for services provided by a physician when the care was provided by a less qualified employee

Medicare.gov notes that Medicare fraud affects everyone, not just the federal government, because it can lead to increased costs and taxes for everyone. 

What Qualifies as Government Procurement and Military Contract Fraud?

A range of actions could qualify as government procurement and military contract fraud, such as:

• Overcharging for goods or services
• Performing sub-standard work or substituting lower quality materials for promised higher quality materials
• Billing for services not performed
• Providing inaccurate information about completion, quality, or timelines of contract work

Who Can File a Whistleblower Lawsuit?

If you have witnessed fraud against the government by an employer or a government contractor, you may be able to file a whistleblower lawsuit. It is illegal for your employer or the company with whom you contract to retaliate against you.

Whistleblower lawsuits, also known as qui tam lawsuits, cannot be based on public information. To have a valid claim, the person filing such a lawsuit must have some inside knowledge of the alleged fraud committed.

Why Should I File a Whistleblower Lawsuit?

Many people may fear whistleblower retaliation, but retaliation by a company against which you file a claim is in violation of the law. Additionally, you may be eligible for a cash reward if you report fraud directly to the government, though it will likely be a small one. In contrast, filling a whistleblower lawsuit under the False Claims Act makes you eligible for a large cash reward if the lawsuit is successful.

Only the first whistleblower to file a claim is considered by the court and eligible for compensation if their whistleblower lawsuit is successful. This is done to encourage whistleblowers not to hesitate in bringing their claims forward.

How do I Know That I Will Not Face Whistleblower Retaliation?

It is possible that a company could try to retaliate against a whistleblower even though this is unlawful. The identity of the whistleblower is protected while the Department of Justice investigates the claim, to prevent retaliation.

This article is not legal advice. It is presented
for informational purposes only.