Philadelphia Whistleblower Attorney
You rely on the income from your job to support yourself and maybe a family. Naturally, you feel that what is good for your employer is good for you as well. You’re focused on job security, the opportunity to rise to higher positions in the company, better income, and so forth. But what happens if you realize that your company is deliberately and systematically doing something illegal or harmful in the name of profit?
If you blow the whistle on your company’s wrongdoing, you could be subject to retaliation from your employer or have to work in a hostile environment. You might even be terminated, without any source of income and without a good reference when you apply for new employment. You need to talk to a whistleblower lawyer to protect your rights and your future.
Before you blow the whistle on your company, call Hill & Associates. Our founding partner, Leonard K. Hill, is a respected Philadelphia whistleblower attorney who can explain what you need to know about filing a whistleblower claim, also known as a qui tam lawsuit.
Our Whistleblower Attorneys Handle Qui Tam Actions and False Claims Act Cases
Qui tam actions provide a unique avenue for individuals to hold businesses and organizations accountable when they commit fraud against the government. These cases are based on the False Claims Act (FCA)—a federal law that empowers private citizens to initiate lawsuits on behalf of the government. Through this mechanism, whistleblowers, known as relators, expose fraud and help the government recover funds lost to deceitful practices, all while potentially earning a substantial reward for their role in the recovery.
What is the False Claims Act?
Enacted in 1863, the FCA initially aimed to curb rampant fraud by suppliers to the Union Army during the Civil War. Over the decades, amendments have enhanced its provisions, making the FCA a key instrument in exposing and penalizing fraud against federal programs.
Under the FCA, it is illegal for any entity to knowingly submit, or cause to be submitted, false claims for payment to the government. In addition to direct deceit, the FCA also targets:
- False statements: making or using a false record related to a claim.
- Knowingly avoiding an obligation to repay government funds.
- Concealing information that might reveal fraudulent activity.
The term “knowingly” includes not only outright intent to deceive but also cases of reckless disregard or deliberate ignorance of the truth. In other words, even when there is no explicit intent to deceive, entities can still face liability if their actions meet the standards set by the FCA.
Why Work With a Whistleblower Attorney to File a Qui Tam Lawsuit?
For individuals with knowledge of fraud against the government, a whistleblower lawyer can help you file a qui tam lawsuit for two primary purposes:
- Exposing Fraud: Qui tam lawsuits bring hidden, fraudulent practices into the light. When whistleblowers report misconduct, they help protect taxpayer dollars and preserve the integrity of government-funded programs, such as Medicare, Medicaid, and defense contracting.
- Financial Reward: Relators, the name for whistleblowers who initiate a qui tam lawsuit, are eligible to receive a percentage of the funds recovered by the government. This reward typically ranges between 15-30% of the total recovery, depending on whether the government chooses to join the case and the strength of the relator’s contributions. This potential reward incentivizes individuals to come forward with valuable information.
Eligibility to File a Qui Tam Lawsuit
Filing a qui tam lawsuit is a serious step that requires a solid foundation of evidence and an understanding of legal standing. While many people may witness or suspect fraud against the government, not everyone qualifies to file a qui tam case. Our skilled whistleblower attorney can explain whether you qualify to bring a claim. In the meantime, here is a general overview.
Who Qualifies as a “Relator”?
A person with non-public, firsthand information of fraud may bring a qui tam lawsuit. This individual is referred to as the relator, and they act as a whistleblower by providing the government with detailed information about the alleged fraudulent activities. Commonly, relators include:
- Employees: Often, employees within an organization have access to internal data, communication, or practices that reveal fraudulent billing, misrepresentation, or abuse of funds.
- Contractors and Consultants: Individuals who work closely with government-funded entities but are not direct employees—such as contractors, consultants, and vendors—may also discover information that supports a qui tam claim.
- Competitors or Other Third Parties: In some cases, competitors or parties outside an organization may become aware of fraud through business dealings, industry insights, or other means.
FCA Restrictions and Lack of Public Disclosure
The FCA contains certain restrictions to ensure that only valid claims are filed. The law prevents qui tam actions based solely on information that has already been disclosed publicly in:
- Media Reports
- Government Hearings
- Investigations or Public Records
If the fraudulent activity has already been made public, the relator must be considered an “original source” of the information. This means they must have firsthand knowledge of the fraud, independent of public disclosures, or they must provide new insights that are materially significant to the case.
Federal vs. State Eligibility Criteria
In Philadelphia, potential relators must meet federal standards under the FCA for cases involving federal funds. Additionally, Pennsylvania’s Whistleblower Law offers protections for those reporting fraud or misconduct related to state-funded entities. While this state law doesn’t offer the same financial incentives as the federal FCA, it protects whistleblowers from retaliation, allowing them to take legal action if they experience punitive measures, such as termination, demotion, or harassment.
Can Multiple Relators File Together?
The FCA only allows one qui tam lawsuit to be filed for each claim, with the first filer generally having priority. However, there are situations where multiple individuals have knowledge of the same fraudulent conduct. In these cases, the government may choose to consolidate information from multiple relators, but only the first person to file typically receives the primary share of any financial reward. Therefore, speaking with an experienced whistleblower lawyer as soon as possible is essential for protecting your right to file a claim.
Common Types of Fraud Our Whistleblower Law Firm in Philadelphia, PA Can Allege in Qui Tam Cases
1. Healthcare Fraud
Healthcare fraud is one of the most frequently litigated areas under the FCA, with billions recovered annually, especially during the COVID-19 pandemic. Common forms of healthcare fraud include:
- Billing for Unnecessary Services or Products: Medical providers may charge Medicare or Medicaid for services that were not medically necessary, such as excessive testing or treatments.
- Upcoding and Overcharging: This occurs when providers bill for more expensive services than were actually provided, manipulating codes to increase reimbursement.
- Kickbacks and Bribery: Under the Anti-Kickback Statute, providers and suppliers cannot offer or receive incentives for patient referrals covered by federal healthcare programs. Kickback schemes often involve financial rewards to doctors for directing patients to certain providers, services, or products.
- Off-Label Drug Marketing: Pharmaceutical companies may illegally market drugs for uses not approved by the Food and Drug Administration (FDA) while billing government programs for these unapproved treatments.
2. Government Contract and Defense Contractor Fraud
Federal contracts, especially in defense and construction, can involve significant government expenditure, creating opportunities for fraud. Common violations include:
- Misrepresenting Costs or Labor Hours: Contractors may inflate costs, overstate materials used, or misrepresent labor hours to secure higher payments.
- Providing Defective Products or Services: Selling substandard goods or services to government entities is prohibited, particularly in defense contracts where equipment quality directly affects national security.
- Bid-Rigging and Collusion: Contractors sometimes collude with competitors to manipulate the bidding process, ensuring inflated contract awards. These schemes violate procurement rules designed to foster fair competition.
3. Financial and Securities Fraud
Fraud within financial institutions or corporations can involve misconduct that misrepresents the value, performance, or compliance of financial products. Although not always directly tied to federal funds, many cases involve federal agencies, such as the Securities and Exchange Commission (SEC), or affect federally backed investments. Examples include:
- False Financial Reporting: Falsifying company performance metrics or concealing debts and losses to attract federal investment or subsidies.
- Securities Fraud: Companies may mislead investors, including federal programs or retirement funds, about the company’s health or operations. This can also fall under Dodd-Frank whistleblower provisions, protecting those reporting securities fraud specifically.
4. Environmental Fraud
Federal environmental programs and regulations, particularly those under the Environmental Protection Agency (EPA), often involve large public investments in preservation, cleanup, and safety compliance. Environmental fraud may include:
- Falsifying Compliance Reports: Companies may misreport compliance with federal environmental laws, allowing them to avoid costly regulatory upgrades.
- Improper Disposal of Hazardous Waste: Mishandling waste or discharging harmful substances without proper permits or reporting, often in federally funded projects, violates environmental standards and endangers public health.
The Process of Filing a Qui Tam Lawsuit
Filing a qui tam lawsuit involves several key steps, each of which is essential to ensuring that a whistleblower’s claim is taken seriously by the government and fully protected under the law. Here’s how a typical qui tam case unfolds from start to finish.
Step 1: Consult a Whistleblower Lawyer
All qui tam lawsuits must be filed by an attorney on behalf of the relator/whistleblower. Our experienced qui tam lawyer will:
- Assess the Validity of the Claim: We can evaluate whether your information constitutes actionable fraud.
- Gather Evidence: Building a strong case requires documented evidence of fraudulent conduct. This can include internal emails, billing records, or company reports that demonstrate a clear pattern of deceit.
- Protect Your Whistleblower Rights: Since whistleblowers often face retaliation, we can explain the safeguards available to you as the relator.
Step 2: Filing the Complaint Under Seal
Qui tam cases are unique in that they are filed under seal (i.e., kept confidential) in federal court during the government’s initial review. This process allows the government time to investigate without alerting the defendant to the pending lawsuit. Key points include:
- Duration of the Seal: The case is sealed for 60 days initially, but in practice, this period is often extended to allow the government more time for a thorough investigation.
- Maintaining Confidentiality: During the seal period, only the government and the court are aware of the case. Whistleblowers must not disclose details of the lawsuit to anyone outside of this circle, including the defendant or the media, as this can jeopardize the case.
Step 3: Government Decides Whether to Intervene or Decline
Once the government completes its investigation, it decides whether to intervene in the case. Intervention means the government formally joins the lawsuit, taking on the primary responsibility for prosecuting the fraud. The decision process includes:
- Intervention Benefits: When the government intervenes, it typically enhances the chances of a successful outcome, as the government brings significant resources and authority to the case.
- If the Government Declines: If the government chooses not to intervene, the whistleblower and their attorney may continue the lawsuit independently. Relators in non-intervened cases may receive a higher reward percentage (up to 30%) if they succeed, though the burden of litigation falls largely on the relator and their whistleblower law firm.
When you are considering which Philadelphia whistleblower attorney to bring your case, look for a professional with experience in both private party and government cases.
Step 4: Litigating the Case
Once the case proceeds, with or without government intervention, the legal process unfolds in full. For cases where the government is involved, the whistleblower’s attorney may still play an active role, working with government lawyers and offering insights that only an internal source could provide. In cases without government involvement, the relator’s attorney leads the lawsuit. This phase involves:
- Discovery: Both sides to the litigation gather additional evidence through depositions, subpoenas, and other discovery methods to strengthen their positions.
- Negotiations and Settlement: Many qui tam cases are resolved through settlement, as defendants may prefer to avoid the risk and publicity of a trial. Settlements typically involve significant financial recovery and potentially additional penalties.
If the case does proceed to trial, the whistleblower attorney will work to present a compelling case to prove the fraud, the relator’s role in exposing it, and the damages incurred by the government.
Step 5: Reward and Recovery for the Whistleblower
Upon a successful resolution, either through trial or settlement, the relator receives a percentage of the recovery. Reward specifics include:
- Government-Intervened Cases: The relator generally receives 15-25% of the funds recovered, depending on the relator’s contributions and the level of detail in their original evidence.
- Non-Intervened Cases: If the whistleblower pursues the case independently and succeeds, the reward can increase to 25-30% of the recovery.
The final percentage depends on the complexity of the case, the quality of the relator’s information, and the relator’s level of cooperation during the investigation.
The Importance of Partnering With a Dedicated Whistleblower Law Firm in Philadelphia, PA
Qui tam lawsuits are generally large and complicated, and the person bringing the charges is risking a great deal, although the potential reward can be great. This type of action requires an experienced whistleblower lawyer in Philadelphia with very specific experience and knowledge.
If you have evidence of fraud against the government or serious violation of a government regulation, you should not speak about it to anyone until you have found a qualified whistleblower attorney. Having the right attorney by your side can make a huge difference in the likelihood of success in your qui tam case, as well as in determining whether you will be rewarded and how much you will receive.
It is also important to hire a lawyer and act as soon as you have evidence of the wrongdoing. By waiting too long, you could lose your right to the reward percentage if someone else files the action first. Only the first person to file a lawsuit is entitled to the government reward.
Trust the Whistleblower Attorneys at Hill & Associates to Protect Your Rights
If you are considering blowing the whistle to expose a company that is defrauding the government or whose activities violate federal law, the Philadelphia law firm of Hill & Associates offers a free legal consultation to review the evidence you have, explain your options, and file a lawsuit on your behalf as soon as possible to preserve your position as the first to bring the matter to court.
Call our office at (215) 567-7600 today to schedule your appointment and learn more about bringing a successful qui tam action.