The False Claims Act (FCA), also known as the "Lincoln Law" or the "qui tam" law , was enacted in 1863 as part of the effort to stop dishonest suppliers to the Union Army during the Civil War. It was amended in 1943 and 1986. The FCA allows a private individual with knowledge of past or present fraud perpetrated upon the federal government or an agency that receives federal funds to sue on the government's behalf to recover compensatory damages (the amounts actually paid), civil penalties (currently $5,500.00 to $11,000.00 per occurrence), and treble damages (three times the amount actually paid).
The person bringing the suit (a whistleblower) is known as the "relator." The government is given notice and an opportunity to intervene in the case before the suit is disclosed to the public. The government may choose not to intervene and allow the relator to pursue the claim on behalf of the government. If the government chooses not to become involved in the suit, the relator may recover as much as thirty percent (30%)of the total damages and penalties awarded to the government. In cases where the government intervenes, the average relator share is sixteen percent (16%) of the total monetary award.
|