The False Claims Act has been hugely successful in combatting fraud against the U.S. Treasury. Whistleblower cases, also called qui tam suits, filed under the False Claims Act allow private individuals to file a civil action against individuals or companies that have defrauded the U.S. government by making false claims or statements for payment.
Under the False Claims Act, the Department of Justice is authorized to pay a reward to whistleblowers who report fraud against the government. Awards range from 15% to 30% of the government’s recovery based on the whistleblower’s disclosures and assistance. Types of fraud reached by the False Claims Act include fraud against federally run health programs, including Medicare and Medicaid and government contract fraud, like overbilling the government for goods and services, or providing shoddy or substandard products to the government.