What Are the Rewards of Whistleblowing?

American taxpayers want to know that the funds they pay into government coffers are put to good use for the benefit of all citizens. There are some companies, however, which greedily try to defraud the government in hopes of bringing in even more profits to their bottom line.
Not only is this an abuse of the trust that has been placed in those companies, it denies access to those funds which might otherwise have been available for other programs. It is also considered fraud and is illegal.

Businesses are committing fraud when they knowingly present a fraudulent claim for payment to the federal government, use false records or statements to get those claims
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paid, or use false records to conceal or avoid paying money to the federal government. They may also conspire with others for the purpose of getting fraudulent claims paid.

Government watchdog agencies do their best to spot fraud and bring the perpetrators to justice, but sometimes it takes a citizen with knowledge of the company’s actions to take action. This might be a current or former employee, customer, or vendor who has original, credible information that can be used to protect the public’s interest. When that person files a claim against the offending company, he or she then becomes known as a whistleblower. It is not necessary for the whistleblower to have been personally harmed by the alleged actions of the defendant -- only that federal funds are involved and that the fraud is substantial in nature.

In these cases, whistleblowers become part of what is known as a qui tam suit, which is a civil lawsuit that is filed in their name under federal and state False Claims Acts. The name qui tam relates to the fact that these people are filing a claim on behalf of themselves and the government against the alleged offenders. If merited, the Department of Justice itself may intervene in this qui tam litigation.

Although it may lead to some personal hardships and possible emotional turmoil along the way, most whistleblowers feel they have a moral mandate to come forward about some type of fraud, abuse or waste of public funds that they have witnessed. They may feel that the offenders are “getting away with something” and want to do the right thing to ensure that taxpayer dollars are spent wisely.

In addition to the ethical victory involved, there could also be a financial benefit to the whistleblower. If the case is successful, the person involved could get a percentage of the funds recovered by the government. This could be anywhere from 15 to 30 percent and is in addition to recovery of any reasonable attorneys’ fees that were incurred in bringing the action. Since damages assessed against companies which have been found guilty of fraud can reach to hundreds of millions of dollars, the whistleblower's reward could be quite substantial.

This type of fraud is most often found in the medical industry, which can be rife with abuse of Medicare and Medicaid funds. Hospitals, nursing homes, home healthcare providers, pharmaceutical companies and even research organizations have been found to have engaged in fraud. Other industries which are notable for their fraud potential include banks and mortgage companies, defense contractors, environmental contractors, and low-income housing providers.

If you are aware of possible wrongdoing and believe that you have an actionable cause, you will need to find an attorney who is experienced in filing qui tam suits. You will feel better about shining a light on a potential area of abuse, ensuring that taxpayer dollars are being used as intended and bringing fraudulent companies to justice. You might even end up with some money to make your own future more secure.

ABOUT THE AUTHOR: Bert Louthian
For over thirty years, Bert Louthian has been practicing law in Columbia, South Carolina, alongside his father, Herb, providing clients with a collective 80 years of legal experience. Family has always been a top priority for Bert, who, along with his wife, is the proud parent of three lovely children.

Since receiving his Juris Doctor from the University of South Carolina, Bert has been dedicated to helping those who have been wronged or have witnessed wrongdoing so they can come forward safe in the knowledge that they will be provided the best representation possible.

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Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.