The following content is considered nonlegal and nonbinding OPINION only, and does not legally assume any entity is responsible for the accuracy of any facts that may seem to be presented by any entity. Rather this is meant to be a starting point of research into the facts or truth. The standard of the reasonable person should be assumed with regard to any possible research into the facts or truth!
Generally, 54 percent fraud by tipster, or 58 % employees, 17 % customer, 12 % vendor, 9 % shareholder); 4 percent fraud by audits; bounties can be 15 - 30 percent from IRS, Department of Justice, SEC (only 10% bounty) FBI may have the best investigators of major fraud cases! Whistle blower filing with IRS: If the taxes, penalties, interest and other amounts in dispute exceed $2 million, and a few other qualifications are met, the IRS will pay 15 percent to 30 percent of the amount collected. If the case deals with an individual, his or her annual gross income must be more than $200,000. These rules are found at Internal Revenue Code IRC Section 7623(b) .
Employees best at spotting fraud, next best are journalists, then government regulator by inspection of physical assets, then financial audits (reckless selling, impotent mathematical modeling , poor maintenance, or unknown latent condition). Rewards increase tipoffs by about 600%.
Bottom up information sharing by exposure of data, democratic elected council will result in more sharing and trust to perhaps 70% improvement in cooperation or participation in activities and helps prevent fraud!
TIPOFFS: INVESTORS AND EMPLOYEES ARE CRIMINALS willing to go along with a criminal scheme and tend to be off-shore investors; secrecy with or without a special deal or access alleged; key employees cannot answer simple questions about the business; there are allegations of more than one set of books about the finances of the business; friends and family only work at the entity; lies or has criminal past; multiple negative articles or sanctioning by the government; borrows money at an excessively high rate of finance entity; returns are faked and usually manufactured within cooperating entities; major industry players avoid the entity; ORCHESTRATED SHOW TO ENTICE INVESTMENT usually involving an attempt to suggest similar interests or cultural background or bragging about how good the business is going in front of a investor while pretending to not know the investor is considering investing in the business. Friends and family are first in and out; NEW PRODUCT operating under jurisdiction or regulators radar; alleged secret proprietary system; usual profits are not taken; unusual recruitment method; strange funding methods, such as cheaper money can be found elsewhere, or looking for expensive money from banks; credit departments of outside entities will not approve loans; MATHEMATICALLY IMPOSSIBLE STRATEGY, such as multiple hints of fraud or strategy is a fraud, or ratios exceed all previously known standards; no other similar entity has the same performance; allegation of subsidized losses, impossible scheme perhaps because capitalization of investments is impossible due to lack of inventory worldwide, or understating losses or cannot hedge against losses as claimed; or trade tickets do not exist on the public tape; DISALLOWS AUDITORS, has multiple auditors or auditors are not paid!
Bounties or rewards for information and workup/proveup of cases is needed due to being blacklisted from industry and due to the risk of loss of life!
A consultant to law firms can have a hourly negotiated fee or a lien that is percentage of recovery and/or can make money by guiding persons to clients in the most skilled lawyers possible!
The False Claims Act protects whistleblowers.
Some whistleblowers are getting millions from the government as a percentage of the funds they recover for the government.
Previously even important persons in high government positions couldn't do well against large entities when whistleblowing, but that has changed, especially against drug companies.
Increasingly large government contractors, and even mostly government funded educational institutions should expect to repay the government for fraud, waste and abuse using the False Claims Act.
Even persons without much education, standing or wealth may help recover funds for the government using the False Claims Act.
Whistleblowers and their lawyers are combating military fraud.
Recovery for the whistleblower may be 15% to 25% of the total recovery of funds the government receives.
The Racketeer Influenced and Corrupt Organizations (RICO) Act and Anti-trust law both have triple damages provisions (three times their actual damages) and could be awarded their costs and attorneys' fees.
Almost four billion dollars have been recovered for the United States Treasury due to claims made under the Qui Tam Provisions of the False Claims Act.
You and your job may be protected against wrongful termination and retaliation under the law for reporting injustices to the government.
The Department of Justice contends that the average relator (person who files the lawsuit and must also submit to the Department of Justice a written disclosure of all material evidence) share is usually approximately 16 to 17% of the settlement of the claim.
About 3,000 qui tam cases have been filed since the 1986 amendments, most them were filed in the past three years.
Department of Health and Human Services has collected about $1.564 billion, even though it was expected that most of the claims would be against defense contractors.
It is often best to be the first person to file a claim in order to received an award for damages.
The claimant may be awarded three times the government's losses plus about $5,500 to $11,000 for each false claim.
Many other laws may be violated by the contractor and also filed in a lawsuit and some of the other violations may have long statutes of limitations and/or triple damages or punitive damages, or damages were expenses are usually tripled, such as medical expenses.
The book Flirting with Disaster claims abourt 60% of whistleblowers are fired, about 20% have their responsibilities changed or are harassed, and in scientific misconduct cases there are often counter allegations!
Likely any branch of the government, including state and local government, that receive money from the federal government (health care, federal and state grants), and who are regulated by federal government regulatory agencies (EPA, DOE, NRC, FAA, FDA, and the United States Customs Service) can be sued under both RICO and The False Claims Act. Medical upcoding may be common and is usually the most common false claims act case.
Complex conspiracies involving the violation of many laws were triple and punitive damages can be awarded are common in FCA lawsuits.