Qui Tam

"Qui Tam" is short for the Latin phrase qui tam pro domino rege quam pro siepse, meaning "he who is as much for the king as for himself". Qui tam is a key provision of the False Claims Act which allows a private citizen to file a lawsuit in the name of U.S. Government for fraud or false claims by companies that do business with, or are reimbursed by the United States. In return for filing and pursuing a successful qui tam lawsuit, the law provides for a reward of 15-30 percent of the monies recovered.

Like similar whistleblower laws, the Qui Tam provision prohibits an employer from harassing or retaliating against an employee for attempting to uncover or report fraud on the federal government.

The False Claims Act qui tam law is sometimes known as the "Lincoln Law" because it was first enacted by President Lincoln during the Civil War. The law was revitalized and strengthened in 1986. In a qui tam or whistleblower case, a private individual or organization files a lawsuit on behalf of the government to recover damages from fraudulent activity that cost the government money. Cases of this type are filed by a "relator," who is the person that learns and reports certain types of fraudulent acts that are being conducted against the government. The relator may file a complaint, under seal, which means that it remains confidential for a period of time.

Anyone can file a qui tam action alleging that a false claim has been submitted to the government. Types of false claims include overcharging the government, charging for services never provided, selling something and not delivering it, making false reports about the quality of a product, failing to properly test products, or any scheme intended to cheat, defraud, or steal from the government.

The False Claims Act provides protection to employees who are retaliated against by an employer because of the employee's participation in a qui tam action. The protection is available to any employee who is fired, demoted, threatened, harassed or otherwise discriminated against by his or her employer because the employee investigates, files or participates in a qui tam action. This "whistleblower" protection includes reinstatement and damages of double the amount of lost wages if the employee is fired, and any other damages sustained if the employee is otherwise discriminated against.

The qui tam action must be filed in a U.S. District Court that has proper jurisdiction. The complaint must also be accompanied by a "written disclosure of substantially all material evidence and information the person possesses". The main purpose for the written disclosure is to provide the government with enough information to properly investigate the claim in order to determine if it will join in the lawsuit. If the government joins in the suit, the Department of Justice (DOJ) will lead the prosecution of the case.

If the DOJ decides to join in the lawsuit, it controls the case and has the responsibility for prosecuting the action.

When the DOJ decides not to join in a case, the relator has the right to prosecute the case and conduct investigations associated with the case. The DOJ may intervene in the action at any time.

Qui tam actions carry with them the potential for substantial monetary judgments being entered against the defendants. A portion of that award will go to the person who initiated the action. An experienced qui tam litigation attorney can analyze your case, and determine how much the likely award will be.

If you have information on any illegal activities that have have defrauded the U.S. Government money, we can help. Contact Belluck and Fox, LLP and we will evaluate your claim.

For more information on the False Claims Act and qui tam cases, you can visit the website of Taxpayers Against Fraud.