While fraud on the government is often broken out into the three big categories of Healthcare fraud, including Medicare and Medicaid, defense contractor fraud and fraud in the procurement of goods and services, there are still many other ways that the federal government can be defrauded.
The government loses millions every year to frauds that run the gamut from failing to pay the government what it is owed, to falsifying documentation to receive research grants.
It’s not surprising that many people are unaware that failure to pay the government the amount due can be such a significant area for potential fraud. This is not tax fraud, either. This type of fraud can take place when companies are awarded land leases for oil or natural gas production and contract with the government to pay fees or royalties, when companies import items from around the world and must pay customs duties. In both of these cases, the documentation required to determine the amount due can be doctored to reflect lesser amounts. There are many other types of underpayment fraud on the government and all may be the basis for a False Claims Act case.
For more information download our eBook title or fill out the form on this website to report fraud on the government now.
Ten Questions
- What are the most common types of fraud perpetrated against the government?
While no two fraud cases are the same, the most common types of fraud center around Healthcare, including Medicare and Medicaid payments and fraud related to the government’s purchase of goods and service, including defense contractor fraud and procurement fraud. Of course, there are many other types of fraud, but these types make up the majority of fraud cases we see.
- What is the difference between overcharging and underpaying the government on contracts?
As it relates to the False Claim Act, there is no difference in terms of it being considered a fraud against the government. Whether the entity is overcharging the government or figuring out ways to pay the government less than what it owes, it doesn’t matter. Both schemes can be frauds on the government.
- Does a company have an obligation to return overpayments made by the government under a contract and can that be a false claim?
In 2009, Congress enacted new laws that make clear that a company that knows or learns that its practices have led to overpayments by the federal government may be liable under the False Claims Act if it does not return the overpayments. The company – or person – can be liable even if the overpayment was due to a mistake. Once the company learns that it has been over paid it has to return the overpayments or be subject to False Claims Act liability.
- How does someone commit fraud on the government in a research grant?
The federal government contracts for millions of dollars in research each year for everything from cures for cancer to space exploration. It clearly identifies what kind of research it wants done, but it also says who it wants to get the benefit of these grants. Some programs are designed to sponsor minorities, women, small business and veterans. Research grant fraud can happen when the grant recipient either engages in fraud in the actual research – like fabricating results. But it can also happen if the grant recipient misrepresented that they were eligible to get the grant in the first place. Research funding is scarce so it’s important that the government get exactly what it said it wanted to pay for.
- What type of evidence must I have to submit a case as a whistleblower?
While there is no formula for the type of evidence required to bring a False Claims Act case, documents, emails, pictures, – really anything – can be used to show the fraud or support what the whistleblower witnessed and believes is a fraud on the government.
- Do California and other states also have laws like the federal False Claims Act for business that contract with them?
Most states, including California, have False Claims Act laws on their books that are very similar to the federal False Claims Act. The laws are not identical however, and there are some states do not have them at all. That is why it is important to speak to an experienced False Claims Act attorney.
- Is it considered a false claim when a bill is not submitted directly to the government, for example when a subcontractor submits an inflated bill to the main contractor expecting it to be paid in full?
Yes, amendments made to the False Claims Act in recent years subject sub-contractors who submit inflated bills to government contractors who are paid by the government to liability under the False Claims Act if the government contractor passes on or includes the inflated charges in their bill to the government. Basically if a sub-contractor overcharges on a contract that is paid by the government, whether paid directly or through a government contractor, it may be subject to FCA liability.
- Will the state or federal government protect the whistleblower for coming forward to expose a fraud on the government?
The federal government and many states have laws that make it unlawful to retaliate against a whistleblower who reports a fraud on the government, and provide a remedy if the whistleblower suffers retaliation. If a whistleblower is retaliated against for bringing or reporting a fraud on the government, the whistleblower may be entitled to be reinstated with the same seniority status, double the amount of back pay, interest on the back pay, and compensation for any other damages resulting from the retaliation, including litigation costs and reasonable attorneys’ fees. However, the whistleblower needs a qualified and experienced attorney to navigate these laws and assure that the whistleblower’s rights under these laws are protected; neither the federal or state government will do that.
- What kind of expertise does Keller Grover offer its whistleblower clients who are reporting a fraud on the government?
Whistleblower cases often involve proving a fraud and protecting the rights of the whistleblower who reported the fraud. It is not uncommon for the whistleblower to experience some form of retaliation when exposing government fraud. While many law firms have experience dealing with one issue or the other, few are experienced enough to handle both issues together. That’s why the legal team at Keller Grover, with more than 20 years’ experience practicing employment law and litigating fraud cases, is uniquely qualified to advise whistleblowers and represent them in whistleblower litigation.
- How much does it cost to hire an attorney to represent a whistleblower who is reporting a fraud on the government?
Keller Grover only works on a contingency fee basis with our whistleblowers which means we will not look to our whistleblowers for attorneys fees or costs unless we are successful with the case and the whistleblower receives compensation from the case.