Reporting fraud against the government in Colorado and nationwide is a courageous act that can result in significant financial rewards, if you meet certain legal rules. Under the False Claims Act (FCA), not every whistleblower or relator qualifies for compensation.
Understanding the rules can mean the difference between a substantial recovery or nothing at all. From proving you are an original source to filing a suit before anyone else, the path to a whistleblower award is filled with critical steps that demand careful handling.
The original source requirement
The public disclosure bar means that a whistleblower generally cannot receive a reward if the information about the fraud is already public. It must not be known through news reports, audits or hearings yet.
To qualify for an award, the whistleblower must be an original source. This means they know about the fraud firsthand and independently, not just by repeating public knowledge. Their information must also add real value beyond what the government already has by providing evidence that helps move the investigation forward.
Maximizing your whistleblower recovery
The FCA is often a race to the courthouse. Only the first whistleblower to file a proper lawsuit can get a reward. If you wait to report, you could lose your right to a reward if another whistleblower or the government files first. When you report also affects how much money you may receive.
Additionally, the whistleblower may strengthen the value of the case and increase the reward amount based on the following factors:
- Strong, well-documented evidence, such as documents, emails or internal data
- Active cooperation with the Department of Justice (DOJ) during the investigation
- Helpful information that can stop an ongoing fraud or expose a complex scheme
On the other hand, certain factors can reduce the reward percentage. This includes delays in reporting the fraud or cases where the whistleblower helped plan or start the fraud.
The vital role of legal counsel
Under the FCA, relators cannot file a case pro se and an attorney must represent them. This requirement is important because FCA cases involve specialized procedures, strict filing rules and sensitive allegations of fraud against the government.
Securing DOJ intervention requires lawyers to craft a detailed disclosure statement that proves the legal merits of the fraud. Whistleblowers must also follow under-seal rules and use anti-retaliation protections to shield themselves during the investigation.
Taking the first step
Successfully pursuing an FCA whistleblower case depends on credibility, timing and execution. If you believe you have actionable information, speaking with an attorney can help you preserve your claim and position the case for the best possible outcome.