There are legal ways for people to receive compensation for reporting misuse of public funds. It’s helpful to know that these rewards are built into the law to encourage honesty and protect state resources. The following sections explain how these incentives work for those who choose to come forward in the future.
Financial incentives for reporting fraud in New York
New York law encourages people to come forward by offering financial incentives. If the state or federal government recovers funds based on your information, you will likely receive a percentage of that recovery. Based on current legal standards, here is how those rewards are generally structured:
- Government-led cases: If the state or federal government joins the case to lead the litigation, the whistleblower is typically eligible for between 15% and 25% of the total recovery. For instance, if a case results in a $1 million recovery for the state, a whistleblower receiving a 20% share would be eligible for a $200,000 reward.
- Individual-led cases: If the government declines to join but you move forward with your legal team and succeed, the reward will often increase to between 25% and 30%. While it is much more common for the government to lead these cases, the law allows individuals to pursue the matter on their own to ensure accountability.
A full recovery can also include additional penalties that a company must pay for each violation. What individuals receive is often based on the quality of the information provided and how much it helped the government recover taxpayer money.
Common types of fraud that lead to rewards
To be eligible for a reward, the fraud must generally involve a government contract or a program funded by taxpayers. In New York, common examples include health care fraud, government contract fraud or tax fraud. New York is unique in that it allows whistleblowers to report major tax fraud (typically involving very high-income earners or large corporations) for a reward.
Protecting your right to a reward
Coming forward is a brave act that protects the integrity of New York’s public programs. But it requires careful legal planning, especially for individual-led legal actions. A legal professional with experience in whistleblower cases can help with filing your claim correctly and protecting your future rights.