As I have explained before, the False Claims Act is quite an old law that Abraham Lincoln signed into law to prevent war profiteers from supplying the Army with faulty goods during the Civil War. In the time since, the False Claims Act has served the United States well, preventing fraud by incentivizing whistleblower claims. It is because of this success that I found a recently released memorandum from the U.S. Department of Justice so perplexing. I will go into detail about the memorandum’s contents below, but I was most troubled by its characterization of whistleblower claims as “frivolous” and “parasitic” actions aimed at generating money for whistleblowers. The whistleblowers I have represented are patriots and heroes trying to help their country, so I hope there is significant pushback against the Trump administration’s characterization otherwise.
Uncovering fraud against the government is a patriotic act. Whistleblowers receive 15% to 30% of any recovery the government makes after prosecuting their case, and government contracts often run into the tens of millions of dollars, often making the whistleblowers’ rewards quite significant. The rich bounty program and robust legal prohibitions against retaliation are aimed at enticing employees with insider information regarding fraud to take the risk of reporting it to the government.
Are you aware of fraud against the U.S. government? Are you considering filing a whistleblower case? Call Barrett Law now at (800) 707-9577 if you think you may be a whistleblower.
The Department of Justice’s January Memorandum
The Department of Justice’s January 10, 2018 memorandum indicates that Justice attorneys should consider dismissing “meritless” and “parasitic” cases filed by whistleblowers under the False Claims Act (FCA). This sentiment enunciates a significant change in course regarding FCA claims, and I worry that it could have a chilling effect on the number of whistleblowers willing to risk their careers and report fraud and abuse under the FCA.
According to the Department of Justice, they recovered $3.7 billion in FCA cases in 2017. Almost all of that money—$3.4 billion— resulted from whistleblower cases. That is a tremendous recovery for the government, and I would think the Department of Justice would want to encourage that sort of reduction in fraud.
Instead, the Department of Justice’s memorandum provides its attorneys with seven reasons for dismissing FCA cases they are working on. These reasons include: the claim is based on “frivolous” allegations or unsound legal theory; duplicative cases; the case interferes with a federal agency’s policies or programs; to protect the Department of Justice’s litigation priorities; to safeguard classified information; or if the claim frustrates the government’s investigation.
Although the Department of Justice’ memorandum describes important considerations, an attorney should make when deciding whether to dismiss an FCA case, the overall message concerns me. When the Department of Justice rejects valid FCA cases, it has a chilling effect on False Claim Act whistleblowers. Ultimately, only corporations defrauding the federal government benefit from that change.
What Should You Do if You are Considering a Whistleblower Claim?
Do you know about fraud occurring against the government? Are you considering filing a whistleblower case? While the language in the Department of Justice memorandum I discussed above comes across as chilling, I can assure you that a well-written, legally sound whistleblower claim will still be taken seriously by the federal government. If you have knowledge of fraud against the government, the reward for submitting a successful claim can be massive. But you will only receive this sort of compensation with the help of an experienced False Claims Act attorney. The United States Department of Justice gets thousands of potential whistleblower claims each year, and only those that are reported in a way that triggers their interest are investigated. Call Barrett Law now at (800) 707-9577 if you think you may be a whistleblower.
Experienced Mississippi Whistleblower Lawyer Barrett can provide you with the advice you will need to file a successful False Claims Act case. Having expert legal advice by your side can mean the difference between receiving your share of a whistleblower reward and losing your career and livelihood. Call us today.
