Citizens who file False Claims Act cases usually do so because they feel morally compelled to expose fraudulent or illegal activity. Some relators, or the individual reporting the fraud, do not know there is a reward if the defendant is found liable for the money the government lost. Others may feel fear of loopholes or being disqualified from receiving a reward. The truth is you could be significantly compensated for filing a False Claims Act case.
How much can I collect from False Claims Act cases?
The amount rewarded to the relator in a False Claims Act case varies depending on the exact details of the case. Typically, the amount rewarded is determined based on how much money the government recovers from the fraudster, including fines and damages. Under the False Claims Act, the government is entitled to recover up to three times the amount originally lost as a result of the fraud. The relator is then given between 15 and 30 percent of the amount recovered as a reward for reporting the fraud.
What about IRS and SEC laws?
There are two laws that are handled a bit differently than typical False Claims Act cases. First, if you are aware of tax fraud, you can report this through the IRS and you may be rewarded a portion of what is recovered. Secondly, laws exist concerning the SEC and the Commodity Futures Trading Commission that entitled you to a portion of the fines collected if the defendant is found liable in the case.
Additional factors to consider:
There are additional factors that contribute to the amount you may be compensated for reporting fraud through false claims act cases:
- Fines can vary greatly based on how much the individual is fined.
- The percentage at that each individual is rewarded is different in each state.
- Investigation by the government may reveal the extent of the fraud is much larger than you were aware, and this could increase your reward.
- The False Claims Act gives you the right to sue for retaliation. So, if reporting fraud has resulted in personal suffering of any kind, you may be compensated an additional amount.
How do I collect my reward?
In order to collect rewards for false claims act cases, the government must take action concerning the fraud and the defendant must be liable. The process of filing a false claims lawsuit can be very involved, and an experienced and skilled false claims act lawsuit can guide you through the process in a timely manner.
You probably have more questions about false claims act cases. The Bothwell Law Group can help you find the answers you need. Call 770.643.1606 today to get answers about false claim act cases.