THE INDIANA FALSE CLAIMS AND WHISTLEBLOWER PROTECTION ACT
QUESTIONS & ANSWERS
- What is the False Claims and Whistleblower Protection Act?
- What does qui tam mean?
- What types of conduct or activities are covered under the FCWPA?
- How can a private citizen receive an award under the FCWPA?
- How much money can a private citizen receive for bringing an action?
- What is the liability for violating the FCWPA?
- Who can be held liable?
- Is there a deadline for filing an action?
- How long does an action take?
- Can I keep my identity secret if I file an action?
- Do I have any protection against my employer firing me for blowing the whistle under the FCWPA?
- How do I find out more?
What is the False Claims and Whistleblower Protection Act?
The False Claims and Whistleblower Protection Act (FCWPA) is an Indiana law that allows individuals with evidence of fraud against the State to sue, on behalf of the State, to recover triple the amount that has been defrauded from it.
As compensation for their efforts, the person who files suit, known as the “Relator,” can receive an award, typically between 15% and 30% of the total amounts recovered.
The term “qui tam” stands for a longer Latin phrase [qui tam pro domino rege quam pro se ipso in hac parte sequiter] that is translated as “he who brings an action for the king as well as for himself.” Qui tam is the technical legal term for the legal principal which allows individuals who have evidence of fraud to sue the wrongdoer on behalf of the Government.
What types of conduct or activities are covered under the FCWPA?
Virtually any situation within which the State is dispensing money, or collecting money, can give rise to a FCWPA violation. Activities which constitute a violation include, but are not limited to:
(a) knowingly presenting, or causing to be presented, to the State a false or fraudulent claim for payment or approval;
(b) knowingly making or using, or causing to be used, a false record or statement to get a false or fraudulent claim paid or approved by the State;
(c) conspiring with others to get a false or fraudulent claim paid or allowed by the State;
(d) knowingly using, or causing to be used, a false record or statement to conceal, avoid or decrease an obligation to pay money or transmit money to the State.
How can a private citizen receive an award under the FCWPA?
In short, it is only the filing of a qui tam lawsuit and subsequent settlement or favorable judgment which enable a private party to receive a recovery under the Act.
How much money can a private citizen receive for bringing an action?
The person who files the suit, known as the “Relator” can receive between 15% and 30% of the total recovery from the defendant, whether through a favorable judgment or settlement.
Under the Federal False Claims Act, upon which the Indiana FCWPA was modeled, Relators have received awards as high as one hundred fifty million dollars ($150,000,000.00) in a single case.
If a person brings an action, and the State chooses to intervene by taking over the lawsuit, the Relator generally is eligible to receive between 15% and 25% of the recovery.
If a person brings an action and the State chooses not to intervene, the Relator can proceed without the government and can receive between 25% and 30% of the recovery.
What is the liability for violating the FCWPA?
Violators of the FCWPA are liable for three (3) times the dollar amount that the State is defrauded plus civil penalty of at least $5,000.00 for each false claim submitted.
Virtually anyone who receives money from the State, or pays money to the State, or helps someone else get money from the State, can engage in conduct which would make them liable for a violation of the Act. The law also covers false claims submitted to contractors, or others, to obtain money, if the State provides any part of the money or property.
Common examples of defendants in qui tam actions, include the following:
Individuals and Businesses: Virtually any individual or business who does business with the State, or sells something to the State, or any agency or branch thereof, can be a defendant in an action.
Government Contractors and Subcontractors: Anyone who contracts to provide services or goods to the State can be a defendant for a vast array of claims.
Medical Providers: Doctors, hospitals, HMO’s and clinics are often defendants in actions, for Medicaid or Medicare fraud and a wide range of fraudulent billing practices which can range from charging for services not performed, to performing services which were unnecessary.
Local Government Agencies and Officials: Because they are recipients of large amounts of Government money, local government entities can be defendants in actions.
Private Universities: Private universities and colleges have been charged as defendants in actions that involve their handling of grants and research and development money.
Is there a deadline for filing an action?
Under the FCWPA, an action must be filed within the later of two time periods:
(a) Within 6 years from the date of the violation of the Act, or
(b) Within 3 years after the Government learned, or should have learned about the violation, but in no event later than 10 years after the violation of the Act.
Please Note - if, before you file, someone else files a FCWPA lawsuit or helps publicize allegations similar to yours, you may lose your right to bring a suit under the FCWPA.
The time from the filing of a qui tam action until its resolution varies greatly from case to case, and can range from months to years. Cases which are resolved more quickly are generally those within which the Relator has secured all of his or her proof in advance of filing the lawsuit. This increases the likelihood that the State will intervene and take over the case, and that, in turn, increases the likelihood that the case will settle sooner, rather than later.
Can I keep my identity secret if I file an action?
When you initially file a lawsuit under the FCWPA, it is filed “under seal” and the defendant remains unaware of your lawsuit during a period within which the State reviews the claims contained within your lawsuit, and decides if it wants to take over your case.
Once the seal is lifted, however, your name will likely be disclosed to the defendant.
Do I have any protection against my employer firing me for blowing the whistle under the FCWPA?
Yes. Under the Act, any employee who is discharged, demoted, harassed or otherwise discriminated against because of lawful acts of the employee in furtherance of an action under the Act is entitled to receive all relief necessary to make the employee whole.
Such relief may include reinstatement, double back pay, and compensation for any special damages including litigation costs and attorneys fees.
To obtain more information, contact:
Andrew J. Campanelli
Campanelli & Associates, P.C.
623 Stewart Avenue
Suite 203
Garden City, NY 11530
(516) 746-1600
For information about actual cases, go to the NEWS section of this web site.