In order to successfully recover civil penalties and forfeitures in a False Claims / Qui Tam action from companies and persons who have defrauded the government, the key elements and basis for the claim must be established. Federal law clearly sets out the types of fraud and false claims which are prohibited and recoverable to Plaintiffs/Relators who relate and refer the fraud to the judicial system through this process.
Prohibited acts include:
(1) presenting a false claim;
(2) making or using a false record or statement material to a false claim;
(3) possessing property or money of the U.S. and delivering less than all of it;
(4) delivering a certified receipt with intent to defraud the U.S.;
(5) buying public property from a federal officer or employee, who may not lawfully sell it;
(6) using a false record or statement material to an obligation to pay or transmit money or property to the U.S. or concealing or improperly avoiding or decreasing an obligation to pay or transmit money or property to the U.S.; or
(7) conspiring to commit any such offense. Offenders face the prospect of costs, expenses, attorneys’ fees, damages, and perhaps triple damages in a civil action brought either by the U.S. or by a relator in the name of the U.S.
Technically a whistleblower attorney under the False Claims Act presents notice of a false or fraudulent claim through a lawsuit and complaint served in the appropriate Federal District Court (31 U.S.C. § 3729(a)(1)(A)) and can allege any number of the following violations:
Use of false records or statements material to a false or fraudulent claim (31 U.S.C. § 3729(a)(1)(B))
Conspiracy to commit liability triggering misconduct (31 U.S.C. § 3729(a)(1)(C))
Short-changing the government on the transfer of funds or other property (31 U.S.C. 3729(a)(1)(D))
Issuing a false government receipt (31 U.S.C. § 3729(a)(1)(E))
Unlawful purchase of government property (31 U.S.C. § 3729(a)(1)(F))
Reverse false claims (31 U.S.C. § 3729(a)(1)(G))
Retaliatory actions (31 U.S.C. § 3730(h))