There has been a lot of discussion of trade and tariffs in the news lately, which has direct links to the False Claims Act. When a country imports products or materials and has tariffs or duties placed on those materials, the country is obligated to pay a certain amount of money to bring the product across the U.S. border. When a country somehow circumvents that duty to pay tariffs and duties, it is denying the U.S. government revenue. When that circumvention occurs due to some fraudulent activity, this is called a “reverse” False Claims Act case. Unlike a traditional False Claims Act case where a supplier violates the terms of a contract by supplying faulty or substandard materials to the U.S. government, in a “reverse” False Claims Act case the supplier avoids paying any money by not entering into any contract at all. The following is an example of a reverse False Claims Act case that illustrates this point.
Are you considering becoming a whistleblower? Have you witnessed importers lying to the federal government while bringing a product or material across the border? You will need the help of an experienced whistleblower attorney to guide you through the process and to attain your fair share of compensation. Contact Barrett Law now at (800) 707-9577 to attain the advice you need.
A Reverse False Claims Act Case Involving Importing Goods Across the Border
In the case United States ex rel. Valenti v. Tai Shan Golden Gain Aluminum Products Ltd., et al., Case No. 11-cv-368 (M.D. Fla.), the U.S. Department of Justice forced the defendants to pay $3 million to settle a False Claims Act case brought by a whistleblower. In this case, the defendants were importing aluminum into the United States to be used in the construction of bathroom shower door frames. The defendants claimed that the aluminum originated in Malaysia when in fact it originated in China and merely passed through Malaysia en route to the United States. This was a significant misrepresentation, as Chinese aluminum was subject to substantial trade duties, while Malaysian aluminum was not. In essence, the defendants’ misrepresentations ended up defrauding the U.S. government out of money it was due.
This is “reverse” whistleblower case because there was no contract or financial agreement between the defendants and the U.S. government; however, if the defendants had been honest about their importing, a financial approval would have been required. Their attempt to subvert that agreement amounted to fraud and a violation of the False Claims Act. A whistleblower came forward and alerted U.S. Customs that the defendants were bringing aluminum into the U.S. without paying appropriate customs. As a result, the whistleblower received a reward of $555,100.
What Should You Do if You are Considering Making a Whistleblower Claim?
Are you considering filing a whistleblower case? The reward for submitting a successful claim can be significant, here half a million dollars, but you will only receive this sort of award with the help of an experienced whistleblower attorney. The U.S. Department of Justice receives thousands of potential whistleblower claims each year, and only those that meet their requirements and are reported in a way that triggers their interest are acted upon. Careful pleading and an organized approach to gathering evidence are critical to this process and will require the help of an experienced whistleblower counsel. Contact Barrett Law now at (800) 707-9577.
Experienced whistleblower lawyer Barrett can provide you with the advice you will need to file a successful whistleblower 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.
