What is the Federal False Claims Act? Understanding the Law That Protects Whistleblowers

The Federal False Claims Act (FCA) is one of the most powerful tools the federal government uses to combat fraud against government programs. Originally enacted during the Civil War, the law was designed to prevent contractors from defrauding the government. Today, the FCA is widely used to hold businesses, healthcare providers, and government contractors accountable for submitting false claims for federal funds.

One of the most significant aspects of the FCA is its whistleblower provision, which allows private individuals—known as relators—to file lawsuits on behalf of the government and receive a portion of any recovered funds. If you suspect fraud against a federal program, understanding how the FCA works, who can file a claim, and what protections are available is crucial.

Here, our Bowling Green and Owensboro criminal defense lawyer explains.

How the Federal False Claims Act Works

The FCA prohibits individuals and companies from knowingly submitting false or fraudulent claims for payment to the U.S. government.

This includes:

• Overbilling for goods or services.
• Billing for services not provided.
• Falsifying records or certifications to receive federal funds.
• Misrepresenting the quality or necessity of products or services.
• Violating contract terms but still requesting payment.

Violators of the FCA can face severe financial penalties, including treble damages—three times the amount of the false claim—and civil fines of up to $27,000 per false claim.

Who Can File a False Claims Act Lawsuit?

One of the FCA’s most unique aspects is its Qui Tam provision, which allows private individuals (whistleblowers) to bring lawsuits on behalf of the federal government.

Whistleblowers can be:

• Employees of a company engaged in fraud.
• Former employees or contractors.
• Competitors who discover fraud.
• Patients or customers with inside knowledge of fraudulent practices.

Once a whistleblower files a claim, the Department of Justice (DOJ) reviews the case and decides whether to intervene and take over the lawsuit or allow the whistleblower to proceed independently.

Whistleblower Protections Under the FCA

Filing a whistleblower lawsuit can be intimidating, but the FCA offers strong protections for those who come forward, including:

• Confidentiality – Initial filings are sealed for at least 60 days, meaning the defendant does not immediately know about the case.
• Retaliation Protection – Employers cannot legally fire, demote, or harass employees who file FCA claims. If retaliation occurs, the whistleblower can sue for reinstatement, double back pay, and attorney’s fees.
• Financial Rewards – If the lawsuit is successful, the whistleblower is entitled to 15% to 30% of the government’s total recovery. In significant fraud cases, this can amount to millions of dollars.

How a Federal Criminal Defense Attorney Can Help

While the FCA protects whistleblowers, it can also lead to severe criminal and civil investigations for those accused of fraud. Businesses, healthcare providers, and government contractors facing FCA allegations need experienced legal representation to challenge evidence, prove compliance, and fight excessive penalties.

At John Caudill Attorney at Law, we have extensive experience defending clients accused of federal fraud, including False Claims Act violations. If you are under investigation or need guidance in filing a whistleblower claim, contact our trusted criminal defense attorney in Warren County today by calling (270) 925-0447 or online for a confidential consultation.