Every year billions if dollars are wasted in paying false claims against the government. Of course, fraud is not a new phenomenon. It is as old as mankind itself. People see opportunities to benefit and they grasp those opportunities. They justify their acts to themselves by arguing that they are not stealing from the poor or needy. Yet it is the tax payer that finds himself paying the bills. However, aided by a whistleblower attorney Seattle citizens can help to put a stop to fraud and corruption.
The law that is used to fight against fraud and to take perpetrators to task is called the False Claims Act, or the Lincoln Act. President Lincoln promulgated this act as long ago as the civil war when contractors appointed to supply the army routinely submitted false or exaggerated claims. Apart for amendments in 1986 the act remains to most effective tool in combating fraud against the government.
Cases lodged in terms of the False Claims Act by ordinary citizens are known as qui tam. This Latin term refers to a citizen that lodges a case on behalf of his king but also for himself. Any citizen can lodge a qui tam case if he believes that he has evidence of irresponsible spending, mismanagement of money and assets or even of illegal activities by any other person or organisation.
The False Claims Act makes it worthwhile for ordinary citizens to formally lodge criminal cases against fraudsters. The Act makes provision for rewarding such a citizen with between 15 and 25 per cent of the money recovered from the case. This reward can be extremely large, since those found guilty are fined three times the amount involved in the case plus civil fines of up to 11 000 dollar. This reward can indeed serve as a powerful motivator.
Private citizens filing this type of case are called relators. If they wish to share in the amount recovered during the case, they have to pursue it with their own lawyers. Almost two thirds of moneys recovered in such cases are due to cases filed by private citizens. The rewards awarded these plaintiffs can be very substantial. Lawyers specializing in this field routinely accept cases on a contingency basis.
When a case in terms of the False Claims Act is filed, it is sealed for sixty days. This means that the defendant is not notified of the case in order to allow the authorities to conduct a thorough investigation. The Justice Department also needs time to make sure that the case was not filed frivolously or even out of spite.
Before lodging a claim it is necessary to gather as much evidence as possible. This must be done in a legal manner, however. Documents that were stolen from an employer, for example, may not be permitted in court. The attorneys will need details regarding dates, people involved, amounts and methods used to make false claims.
Tax payers have to foot the bill for fraudulent acts by unscrupulous people and organizations. The False Claims Act gives them the opportunity to do something about it and to get a reward to boot. Anyone that becomes aware of fraud, mismanagement or illegal acts should report the matter without delay.
The law that is used to fight against fraud and to take perpetrators to task is called the False Claims Act, or the Lincoln Act. President Lincoln promulgated this act as long ago as the civil war when contractors appointed to supply the army routinely submitted false or exaggerated claims. Apart for amendments in 1986 the act remains to most effective tool in combating fraud against the government.
Cases lodged in terms of the False Claims Act by ordinary citizens are known as qui tam. This Latin term refers to a citizen that lodges a case on behalf of his king but also for himself. Any citizen can lodge a qui tam case if he believes that he has evidence of irresponsible spending, mismanagement of money and assets or even of illegal activities by any other person or organisation.
The False Claims Act makes it worthwhile for ordinary citizens to formally lodge criminal cases against fraudsters. The Act makes provision for rewarding such a citizen with between 15 and 25 per cent of the money recovered from the case. This reward can be extremely large, since those found guilty are fined three times the amount involved in the case plus civil fines of up to 11 000 dollar. This reward can indeed serve as a powerful motivator.
Private citizens filing this type of case are called relators. If they wish to share in the amount recovered during the case, they have to pursue it with their own lawyers. Almost two thirds of moneys recovered in such cases are due to cases filed by private citizens. The rewards awarded these plaintiffs can be very substantial. Lawyers specializing in this field routinely accept cases on a contingency basis.
When a case in terms of the False Claims Act is filed, it is sealed for sixty days. This means that the defendant is not notified of the case in order to allow the authorities to conduct a thorough investigation. The Justice Department also needs time to make sure that the case was not filed frivolously or even out of spite.
Before lodging a claim it is necessary to gather as much evidence as possible. This must be done in a legal manner, however. Documents that were stolen from an employer, for example, may not be permitted in court. The attorneys will need details regarding dates, people involved, amounts and methods used to make false claims.
Tax payers have to foot the bill for fraudulent acts by unscrupulous people and organizations. The False Claims Act gives them the opportunity to do something about it and to get a reward to boot. Anyone that becomes aware of fraud, mismanagement or illegal acts should report the matter without delay.
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