A Florida man has been granted a substantial whistleblower settlement for his part in bringing False Claims Act allegations against a Florida pharmacy.

According to the U.S. Department of Justice, Vital Life Institute LLC of Sarasota, Fla. and its owners engaged in an illegal kickbacks scheme that violated the False Claims Act. (Vital Life Institute LLC was formerly known as AgeVital Pharmacy LLC.)

Indeed, the False Claims Act lawsuit alleges that the company, directed by its owners, paid kickbacks to a third-party marketing company in order to bring patients in for compounded drug prescriptions—whether or not the patients actually needed them. The kickbacks were allegedly a significant portion of the pharmacy’s reimbursement from TRICARE and Medicare.

“The Department will continue to hold accountable providers that pay illegal kickbacks to induce patient referrals,” noted Assistant Attorney General Jody Hunt of the DOJ’s Civil Division. “Kickback schemes undermine public trust in our health care system and lead to unnecessary health care costs at taxpayers’ expense.”

Vital Life Institute and its owners agreed to pay a settlement of at least $775,000 to resolve these False Claims Act allegations.

“These prescriptions were ordered to increase profits, not improve the healthcare of patients. Healthcare providers who satiate their greed at the expense of the American taxpayer will not be tolerated,” according to Shimon R. Richmond, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services.

The whistleblower who originally brought this issue to the attention of the federal government is set to receive a whistleblower settlement of at least $139,500.

False Claims Act Basics

According to Cornell’s Legal Information Institute, fraud against the government—through “falsely billing the government, over-representing the amount of a delivered product, or under-stating an obligation to the government”—can be held to criminal and civil penalties. False Claims Act lawsuits can be filed by the government or by private parties on behalf of the government, known as whistleblowers.

Whistleblowers are those who alert the government to illegal actions when they see something they that may constitute fraud.

Some people who are considering blowing the whistle on their current employer may be worried about being punished at work or even being fired, but whistleblowers are actually protected from retaliation. Protections for whistleblowers can also work retroactively.

Whistleblowers are usually current or former employees of the company allegedly engaged in fraud against the government.

Pursuing a Whistleblower Lawsuit

If you have witnessed fraud against the government, such as healthcare fraud, you may be able to file a lawsuit under the whistleblower provision of the False Claims Act, which may entitle you to substantial compensation such as a whistleblower settlement.

Whistleblowers are typically entitled to between 15 and 30 percent of the settlement amount for their part in bringing the situation to the attention of the federal government. In some cases, whistleblowers may be awarded hundreds of thousands or even millions of dollars from a particularly large settlement agreement.