David Haron appears on Due Process
David L. Haron appeared on the October 12, 2007 episode of Due Process TV speaking about whistleblowers. Due Process TV dedicates itself to providing free resources, help and general advice on the latest legal questions in the state of Michigan. You may watch the video in its entirety by following this link.
Mr. Haron speaks further about whistleblowers in the following article.
Blowing the Whistle on Fraud
Some years ago, one of my clients found herself in the middle of a complex scheme with the potential to cheat the United States government out of millions of dollars. The client discovered that the medical laboratory she worked for was using improper marketing practices to force physicians into ordering extra blood tests for patients who did not need them. This practice substantially increased the lab’s revenues – at the expense of the federally-funded Medicare program, which paid for many of the fraudulent blood tests.
My client was in the uncomfortable position of a whistleblower. She was concerned that bringing attention to the matter might draw criticism or retaliation from her associates at work. Yet, her conscience would not permit her to ignore the illegal activities. After resigning because of her distress, she filed a civil suit on behalf of the federal government that described the employer’s fraudulent billings.
In 1996, she and the government settled the case for $119 million in civil and criminal fines. She received $9 million of the recovery.
This is just one example of how both government and private entities are assisted
by the activities of whistleblowers, who in the past 20 years have been responsible for returning more than $11 billion dollars to the United States government. A whistleblower is someone who “blows the whistle” on fraud by alerting her supervisors or employer, or an outside regulatory or governmental agency, about fraudulent or dishonest practices. Whistleblowing may be as simple as notifying a state agency that an employer is violating safety protocols, or as extensive and complicated as initiating a multi-million dollar federal False Claims Act suit. While health care fraud schemes are plentiful, whistleblowers have reported fraud in a variety of government programs, such as federal health, defense, agriculture and veterans affairs.
The Federal False Claims Act provides a conduit through which whistleblowers can make sure individual or entities which engage in fraudulent activities are brought to justice. A qui tam suit is the simple name for a suit brought under the federal False Claims Act, 31 U.S.C. §3729 et seq. The federal Act (“FCA”) provides that any person with knowledge of fraud against the United States government may bring suit on behalf of the government to recoup its losses. The FCA provides for triple damages and civil monetary penalties of up to $11,000. A whistleblower who brings suit under the FCA, also called a Relator, may receive between 15 and 30 percent of the recovery from the suit. Numerous states have enacted their own versions of the FCA. Some states’ FCAs only allow for the recovery of funds stolen due to Medicaid fraud. Others allow for more extensive causes of action.
Although blowing the whistle on fraud is a noble act, whistleblowers who choose to expose fraud at their workplace or other setting can be subject to harassment, retaliation and even termination. Whistleblower protection statutes have been enacted to encourage individuals who are aware of fraud to come forward. Whistleblowers who have been retaliated against may bring suit under these statues for reinstatement, past and future damages, attorneys fees and costs.
The FCA was initially proposed by President Abraham Lincoln during the Civil War to deter dishonest vendors from selling rotten leather, mules instead of horses, and faulty weapons to the Union troops. The FCA was strengthened in 1986 and, since then whistleblower have filed over 5,514 new qui tam cases. A hundred and fourty-four years later, modern-day whistleblowers are moving forward to report fraud by government contractors overseas in Iraq. Such schemes include inflating the number of hours logged by contracted employees to selling helmets that do not meet minimum safety standards.
Whatever course a whistleblower chooses to take in reporting fraudulent conduct, whether it be merely notifying a supervisor or filing a False Claims Act suit, it is important to take action. Many of my clients have received the satisfaction of knowing that they helped stop illegal activity and ensured that justice was properly served. In the end, that can be the most gratifying reward of all.
Mr. Haron speaks further about whistleblowers in the following article.
Blowing the Whistle on Fraud
Some years ago, one of my clients found herself in the middle of a complex scheme with the potential to cheat the United States government out of millions of dollars. The client discovered that the medical laboratory she worked for was using improper marketing practices to force physicians into ordering extra blood tests for patients who did not need them. This practice substantially increased the lab’s revenues – at the expense of the federally-funded Medicare program, which paid for many of the fraudulent blood tests.
My client was in the uncomfortable position of a whistleblower. She was concerned that bringing attention to the matter might draw criticism or retaliation from her associates at work. Yet, her conscience would not permit her to ignore the illegal activities. After resigning because of her distress, she filed a civil suit on behalf of the federal government that described the employer’s fraudulent billings.
In 1996, she and the government settled the case for $119 million in civil and criminal fines. She received $9 million of the recovery.
This is just one example of how both government and private entities are assisted
by the activities of whistleblowers, who in the past 20 years have been responsible for returning more than $11 billion dollars to the United States government. A whistleblower is someone who “blows the whistle” on fraud by alerting her supervisors or employer, or an outside regulatory or governmental agency, about fraudulent or dishonest practices. Whistleblowing may be as simple as notifying a state agency that an employer is violating safety protocols, or as extensive and complicated as initiating a multi-million dollar federal False Claims Act suit. While health care fraud schemes are plentiful, whistleblowers have reported fraud in a variety of government programs, such as federal health, defense, agriculture and veterans affairs.
The Federal False Claims Act provides a conduit through which whistleblowers can make sure individual or entities which engage in fraudulent activities are brought to justice. A qui tam suit is the simple name for a suit brought under the federal False Claims Act, 31 U.S.C. §3729 et seq. The federal Act (“FCA”) provides that any person with knowledge of fraud against the United States government may bring suit on behalf of the government to recoup its losses. The FCA provides for triple damages and civil monetary penalties of up to $11,000. A whistleblower who brings suit under the FCA, also called a Relator, may receive between 15 and 30 percent of the recovery from the suit. Numerous states have enacted their own versions of the FCA. Some states’ FCAs only allow for the recovery of funds stolen due to Medicaid fraud. Others allow for more extensive causes of action.
Although blowing the whistle on fraud is a noble act, whistleblowers who choose to expose fraud at their workplace or other setting can be subject to harassment, retaliation and even termination. Whistleblower protection statutes have been enacted to encourage individuals who are aware of fraud to come forward. Whistleblowers who have been retaliated against may bring suit under these statues for reinstatement, past and future damages, attorneys fees and costs.
The FCA was initially proposed by President Abraham Lincoln during the Civil War to deter dishonest vendors from selling rotten leather, mules instead of horses, and faulty weapons to the Union troops. The FCA was strengthened in 1986 and, since then whistleblower have filed over 5,514 new qui tam cases. A hundred and fourty-four years later, modern-day whistleblowers are moving forward to report fraud by government contractors overseas in Iraq. Such schemes include inflating the number of hours logged by contracted employees to selling helmets that do not meet minimum safety standards.
Whatever course a whistleblower chooses to take in reporting fraudulent conduct, whether it be merely notifying a supervisor or filing a False Claims Act suit, it is important to take action. Many of my clients have received the satisfaction of knowing that they helped stop illegal activity and ensured that justice was properly served. In the end, that can be the most gratifying reward of all.