The False Claims Act prohibits people and companies from defrauding the federal government. It applies when a company or person knowingly submits a false claim for payment to the federal government The Act applies to almost any type of fraud in which the government has paid money based on a fraudulent claim. If a court finds that there has been a violation of the False Claims Act, it can issue a judgment in an amount triple to the amount of the government’s losses.
The “qui tam” provision of the False Claims Act encourages whistleblowers to come forward to reveal hidden frauds against the government. The law entitles a successful whistleblower to a percentage (ranging from 15 to 30 percent) of the total amount recovered.
Attorneys at Langer Grogan & Diver have had success helping whistleblowers bring fraud to light, including a nearly $80 million settlement from the for-profit University of Phoenix. The complaint alleged that the University obtained federal student loan monies by falsely certifying its compliance with the Higher Education Act.
If you are aware of any false claims submitted to the government, please contact us here.
NEWS EVENTS AND RELATED CASE EVENTS
On December 19, 2018, a federal court in the Eastern District of Pennsylvania entered a $26.8 million judgment against serial advance-fee fraudster Sandy Hutchens. This is in addition to the $9 million judgment against the front organization obtained in Pennsylvania state court in 2017.