The United States Government enacted the False Claims Act as an incentive to people that had inside information of wrongdoing to provide those details to investigative bodies. The act has led to legal action being brought against many commercial enterprises, large and small. One of the most recent cases filed under the False Claims Act involved telecommunications giant Sprint Corp. and involves allegations that Sprint charged the United States government 21 million dollars more than it should have when complying with court-mandated wiretaps and other operations to assist the government in ongoing investigations. Attorneys for Sprint have stated that the telecommunications company intends to vigorously defend against these charges.
The government frequently will seek the assistance of telecommunication firms when carrying out investigations through the use of phone surveillance. In order to be able to assist in these requests, telecommunication firms are required to maintain the proper infrastructure. As part of this readiness, the firms may seek reimbursement for expenses that are reasonably related to the staff, equipment, and facilities that must be maintained to meet the wiretap and monitoring needs of the requesting government entities.
The current litigation arises out of a case brought by the Justice Department in which it alleges that Sprint inflated its expenses by as much as fifty-eight percent (58%), submitting bills that did not properly enumerate the basis for the reimbursement requests. These expenses were related to operations by the United States Drug Enforcement Administration, the U.S. Marshals Service, and other agencies from January, 2007 through July, 2010. The court action alleges that Sprint improperly sought and received funds from the government to pay for upgrades to its facilities and equipment, which are not recoverable expenses, according to news reports.
Through its attorneys and court filings, Sprint maintains that it only sought reimbursement for allowable expenses that it reasonably incurred during the process of assisting government entities with surveillance operations.
The United States government relies on the False Claims Act as the primary mechanism for getting money back that allegedly was paid as the result of a fraud committed by a corporation. A claim brought under the False Claims Act may include:
- The improper presentation, with knowledge of the wrongdoing, of a claim for payment to the federal government that is based on fraud;
- Utilizing a false or fraudulent record to get a claim approved and paid by the government;
- Engaging in a conspiracy to defraud the government through the submission of and payment on false or fraudulent claims;
- Submitting to the government a certification about property used by the government when that property may not have been used or the person making the certification does not have actual knowledge that the request for payment is accurate;
- Purchasing or taking possession of an obligation from the government when the business entity is not legally able to take the respective action; or
- Acting with knowledge to avoid or conceal an obligation to pay money or otherwise transmit property to the government through the use of false records or statements.
When a whistleblower brings fraud to the attention of the federal government under the provisions of the False Claims Act, he may be entitled to an award of fifteen to thirty percent (15-30%) of the government’s recovery from the wrongdoer.
When a person steps forward to revel wrongdoing in the part of a company, it is imperative for him to be protected. If you were acting as a whistleblower as part of a protected activity, the company knew that you were acting as a whistleblower, and you suffered harm as the result of retaliatory actions by the company, the knowledgeable and experienced Mississippi Qui Tam/Whistleblower Attorneys at Barrett Law PLLC will fight to get you the justice that you deserve. Call us at (800) 707-9577 to discuss your legal rights during a free and confidential consultation. There are no fees until we recover for you.