ATTORNEY NEWSLETTER
Former Accounts Manager Blows Whistle
Defendant Allegedly Failed To Abide By Price Reduction Clause
Realtors Will Receive $437,500 Reward
The False Claims Act (FCA), 31 U.S.C. §§ 3729 et seq., allows individuals with knowledge of fraud against the federal government to initiate actions on behalf of the government to recover government funds paid out as a result of fraudulent claims. 31 U.S.C. §3730(b). In Fiscal Year 2021, private citizens helped the government recover $1.6 billion in cases of fraud against the government. The citizens, known as “relators,” brought the cases, referred to as “qui tam” cases,” under the FCA. If the government recovers, these individuals are eligible for rewards. 31 U.S.C. § 3730(d). Relators of fraudulent conduct are often employees, or former employees, of the business engaging in the fraud. Each year relators in FCA cases recover billions of dollars for the government. Any business billing the government for products or services is subject to government regulation affecting that business and its billing practices for government work, and is also subject to the fines and penalties of the FCA. False certification of eligibility for government funds is one significant source of government fraud, as the reported case below illustrates. If you have credible information of government fraud in Los Angeles or elsewhere in California, call us today at (415)441-8669 and we can help. Our toll-free number is 1-888-50EVANS (888-503-8267).
Patient Monitoring Equipment Provider Settles FCA Allegations For $2.5 Million
In a recent settlement announced by the U.S. Department of Justice,[1] a provider of patient monitoring equipment has agreed to pay $2.5 million to settle allegations it violated the False Claims Act. The settlement resolves allegation made in a lawsuit filed and litigated by a former business specialist and account manager of the defendant provider under the qui tam or whistleblower provisions of the False Claims Act.
The qui tam lawsuit alleged that defendant failed to follow the Price Reductions Clause in a contract with the VA, which required the company to provide the government with certain lower prices offered to another customer, resulting in the government paying more than it should have for patient monitoring equipment.
“Federal contractors are expected to deal honestly with federal agencies and faithfully abide by the terms of their government contracts,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “This settlement demonstrates that our Office will diligently investigate and hold accountable those companies that fail to live up to their end of the bargain and unfairly overcharge taxpayers.”
Fundamentals Of A Qui Tam Case
Qui tam cases begin with filing a complaint in the federal district court where the allegedly fraudulent conduct occurred. 31 U.S.C. § 3730(b). The complaint is filed under seal. The government has sixty days to review the allegations and decide whether to intervene. This review period can be extended. If the government decides to intervene, the government essentially takes over the litigation. 31 U.S.C. § 3730(c). If the government decides not to intervene, the relator has the right to continue the litigation on his or her own. If the relator continues the litigation alone, he or she receive a larger percentage of the amount the government eventually recovers. 31 U.S.C. § 3730(d). The relator may also pursue claims for wrongful retaliation against the defendant if the relator was fired or demoted as a result of blowing the whistle. 31 U.S.C. § 3730(h).
Contact Us
If you have credible information of government fraud call Ingrid M. Evans at (415) 441-8669, or toll-free at 1-888-50EVANS (888-503-8267) or by email at <a href=”mailto:info@evanslaw.com”>info@evanslaw.com</a>. In addition to FCA and CFCA whistleblower cases, Ingrid and Evans Law Firm, Inc. also handle bank fraud whistleblower cases under FIRREA/FIAFEA, commodity trading and securities fraud under the Commodities Futures Trading Commission Whistleblower Program and the Securities and Exchange Commission Whistleblower Program, and tax fraud under the Internal Revenue Service Whistleblower Program.
[1] Evans Law Firm, Inc. was not involved in the case in any way.
