Fraud against the United States is a case the government cannot bring without you.

The False Claims Act is the government's principal tool against fraud, and most of its recoveries begin with a whistleblower—a relator—who saw the fraud from the inside and brought it to a lawyer before anyone else did.

Mr. Powell has recovered on behalf of the United States in False Claims Act litigation in federal court and has practiced in the federal courts for more than four decades. With admissions in Florida and the District of Columbia, decades of federal-court experience, and a principal office in Fort Myers, the firm is positioned to prepare qui tam matters carefully for relators in Florida and elsewhere.

What the False Claims Act prohibits

The Act imposes liability on anyone who knowingly presents, or causes to be presented, a false or fraudulent claim for payment to the federal government; who makes or uses a false record or statement material to such a claim; who knowingly conceals or improperly avoids an obligation to pay money to the government, including retained overpayments; or who conspires to do any of these things. "Knowingly" includes deliberate ignorance and reckless disregard of the truth—actual intent to defraud is not required. A defendant is liable for three times the government's damages plus a civil penalty for each false claim, adjusted annually for inflation and currently in the range of roughly $14,000 to $28,000 per claim.

Fraud the firm investigates

• Medicare, Medicaid and TRICARE fraud. Upcoding and unbundling, billing for services not rendered or not medically necessary, kickbacks and self-referral arrangements, hospice and home-health eligibility fraud, laboratory and durable medical equipment schemes, pharmacy and compounding fraud, and Medicare Advantage risk-adjustment fraud. Claims tainted by a kickback are false claims by statute.
• Defense and government contracting. Substandard or nonconforming parts, cost mischarging, defective pricing, bid rigging, false certifications of compliance, and small-business and set-aside fraud.
• Grant and research fraud. Misuse of federal research and education funds and false progress or compliance reports.
• Customs and trade. Underpaid duties and tariffs through misclassification, undervaluation or false country-of-origin declarations.
• Pandemic relief and other programs. Fraud in PPP and related loans, disaster relief, housing programs and federally insured mortgages.
• Cybersecurity and compliance certifications. False attestations of compliance with federal cybersecurity, safety or quality requirements in government contracts.

How a qui tam case works

1. Confidential evaluation. The firm reviews what you know, what you can document, and whether the matter belongs under the False Claims Act or under another whistleblower program.
2. Filing under seal. The complaint is filed under seal in federal district court and is not served on the defendant. A copy of the complaint and a written disclosure of substantially all material evidence are served on the Attorney General and the local United States Attorney.
3. Government investigation. The case remains sealed for at least 60 days and, in practice, usually much longer while the government investigates with the relator's cooperation.
4. Intervention. The government decides whether to intervene and take the lead, or to decline, in which case the relator may proceed with the case.
5. Resolution. Most successful cases resolve by settlement. The relator receives 15 to 25 percent of the recovery if the government intervened, and 25 to 30 percent if it did not, plus reasonable attorney's fees and costs from the defendant. The share may be reduced if the relator planned or initiated the fraud.

Two rules make speed essential. Under the first-to-file bar, only the first relator to file on a given fraud may proceed. Under the public disclosure bar, a case based on fraud already disclosed in public proceedings, reports or the news media may be dismissed unless the relator is an original source.

Protection against retaliation

An employee, contractor or agent who is fired, demoted, harassed or otherwise discriminated against for lawful acts in furtherance of a False Claims Act action, or for efforts to stop a violation, is entitled to reinstatement, double back pay with interest, special damages and attorney's fees. A retaliation claim must be brought within three years.

Deadlines

A False Claims Act action must be brought within six years of the violation, or within three years after the responsible government official knew or should have known the material facts, whichever is later—but never more than ten years after the violation. The three-year provision is available to relators even when the government declines to intervene. Because of the first-to-file rule, however, the practical deadline is set by other potential relators, not by the statute.

Before you contact anyone

• Do not confront the employer, post online or discuss the matter with coworkers.
• Do not take documents beyond what you legitimately have access to; the handling of evidence should be decided with counsel.
• Write a private timeline of what you observed, who was involved and when.
• Preserve what you lawfully possess—e-mails, policies, billing records, compliance complaints—and do not alter anything.
• Once a case is filed, the seal prohibits discussing it. The firm will explain what you may and may not say.

Florida's False Claims Act and other programs

Florida has its own False Claims Act covering fraud on state funds, including the state's share of Medicaid, with a parallel qui tam procedure. Securities, commodities, tax and anti-money-laundering violations are addressed through the SEC, CFTC, IRS and Treasury whistleblower programs, which pay awards of 10 to 30 percent of sanctions collected. The firm evaluates which forum, or combination of forums, fits the facts.