1) How would you explain the qui tam false claims remedies to a non-lawyer.
The False Claims Act (“FCA”) is used by the government to recover monies embezzled through fraudulent practices. It prohibits knowingly presenting or causing to be presented a false claim for payment of government funds. The claim must be to recover government funds, funds from private insurers do not apply under the FCA. Examples of false claims include: receiving payment from the government through falsifying documents or statements, creating a false record to get a fraudulent claim paid by the government or conspiring to defraud the government by getting a false claim approved or paid.
The FCA has a whistleblower or qui tam provision allowing citizens which evidence of fraudulent activity against the accused to sue on behalf of the government. The informant can receive bounties in the millions; usually between 15% to 20% based on the…show more content… During the US Civil War, fraud was rampant in dealing with government contracts when unscrupulous contractors sold the Union Army, horses and mules in ill health, faulty rifles and ammunition. The False Claims Act, passed by Congress on March 2, 1863, was an effort by the government to respond to entrenched fraud where the official Justice Department was reluctant to prosecute fraud cases. The act has survived for over 150 years, which indicates that government fraud is still a problem in the US.
The "qui tam" provision permits citizens to sue on behalf of the government and receive a percentage of the total recovery from the defendant. Many times, if no one reports the fraudulent activity, the government can waste millions of dollars in false claims which will deplete services including healthcare which are desperately needed and increase