How Federal False Claims Act Cases Work
Last updated on June 8, 2026
The federal budget is nearly $4 trillion per year. A large percentage of this huge outlay is payment and reimbursement for goods and services. The government has systems in place to prevent fraudulent claims, but these systems are hardly foolproof. This is why the government relies on individuals (formally called “relators” but often just called “whistleblowers”) to come forward with evidence of fraud. Cases filed by whistleblowers have a much higher success rate than cases filed solely by the government. The government’s policy and laws mandating sharing rewards with whistleblowers are major factors in this success.
The False Claims Act (FCA) is the government’s most powerful tool in combating waste, fraud and abuse. It came into existence during the Civil War to quash procurement fraud by the many vendors eager for government money – thus its early identification as “Lincoln’s Law.” The law was substantially overhauled in 1985.
Who Can File A Federal False Claims Act Lawsuit?
The federal FCA covers fraud involving government programs, contracts and federally funded services. You may qualify if you are:
- An employee who witnessed fraud at your workplace involving federal funds
- A contractor or subcontractor working on a government-funded project
- Another party with inside knowledge of fraud against a federal program or contract
Timing matters in these cases. Under the first-to-file rule, only the first person to report a given fraud can share in the recovery. To file, you must also retain an attorney since federal law does not allow individuals to bring these cases without legal counsel.
What Types Of Fraud Does the Federal False Claims Act Cover?
The FCA reaches a wide range of fraudulent conduct directed at the federal government. You may have grounds for a case if, at your workplace, you have witnessed any of the following actions involving government funds:
- Medicare and Medicaid fraud: Billing the government for undelivered services, upcoding medical procedures or paying illegal kickbacks for patient referrals
- Defense contractor fraud: Overcharging the military, delivering substandard equipment or misrepresenting performance on a government contract
- Construction contractor fraud: Falsifying certifications, inflating costs or substituting inferior materials on federally funded projects
- Cybersecurity fraud: Misrepresenting compliance with federal cybersecurity requirements to win or keep government contracts
- Tax fraud: Filing false returns or concealing taxable income, covered under the New York False Claims Act rather than the federal FCA
We have handled federal FCA cases in federal courts across the country for over 20 years. Our practice focuses exclusively on representing whistleblowers; we never represent the companies on the other side of these cases.
What Happens When You File A Qui Tam Case?
A qui tam case begins with a complaint filed by the whistleblower in a U.S. District Court. The whistleblower is asking the federal government to intervene, and prosecutors must evaluate the evidence to make this decision.
Copies are also filed with the local United States attorney and the U.S. Attorney General. Defendants named in the complaint are not informed about it, nor is information made available to the public. The majority of jurisdictions only allow these cases to be brought by lawyers acting on their clients’ behalf. The cases cannot be brought by individuals without representation.
Our work as your representatives is intensive during this period. At Fischer Legal Group, we know the federal FCA process and are familiar with its many requirements. We will ensure that you have the standing to file the complaint. To prevent confusion and “piling on,” the government only allows the first whistleblower to file a complaint in a given case to share in the damages.
What Is The Scope Of The Rewards You May Receive?
Defendants convicted of FCA violations must pay back three times the amount of losses by the government due to the fraud. In addition, the courts may levy civil penalties between $14,308 and $28,619 per fraudulent claim.
Violations of the FCA can result in other negative consequences, including disqualification from future federal and state government contracts.
The rewards for whistleblowers in the conviction are significant. Relators are awarded a share of 15% to 30% of government recoveries. Every case has its own complexities, which may affect your total reward. At Fischer Legal Group, we will give you the information necessary to estimate your total compensation for reporting the crime.
Whistleblower Anti-Retaliation Protections
The federal FCA prohibits employers from retaliating against any employee, contractor or agent who files or assists in an FCA lawsuit. Retaliation can include termination, demotion, suspension, harassment or other adverse employment actions. If your employer retaliates against you for coming forward, the law gives you the right to take action.
Remedies for retaliation under the FCA include reinstatement to your previous position, double back pay and compensation for additional damages you have suffered. Importantly, these protections apply even if the government does not intervene in your case or the underlying fraud claim does not succeed.
Effective Whistleblower Representation
This is not a simple part of the law by any means. Call Fischer Legal Group at 212-577-9231 or email us to arrange an initial consultation to fully understand the dimensions of your case.