According to Black's Law Dictionary, qui tam is an abbreviation of a Latin phrase meaning, "Who sues on behalf of the King as well as for himself."
A qui tam suit or "Whistleblower suit" is a legal action brought by an “informer” or “whistleblower” under a provision of the Federal Civil False Claims Act that allows private citizens to file a lawsuit on behalf of the United States Government alleging fraud, kickbacks, or misuse of government funds. A party who brings a successful whistleblower suit receives as an award, a share in any money recovered.
The False Claims Act (FCA) prohibits:
• Making a false record or statement to get a false or fraudulent claim paid by the government;
• Conspiring to have a false or fraudulent claim paid by the government;
• Withholding property of the government with the intent to defraud the government or to willfully conceal it from the government;
• Making or delivering a receipt for the government's property which is false or fraudulent;
• Buying property belonging to the government from someone who is not authorized to sell the property; or,
• Making a false statement to avoid or deceive an obligation to pay money or property to the government.
The False Claims Act was enacted during the Civil War to “control fraud” in federal contracts” and was subsequently amended in 1986 to encourage whistleblower protection. The FCA contains two sections relevant to “whistleblowers.”
The first is a qui tam provision which permits private citizens and “original sources” (whistleblowers) to file suit on behalf of the United States to recover damages incurred by the federal government as a result of contractor fraud or other false claims. In return for filing the suit, the whistleblower is entitled to a significant portion of the proceeds, should they prevail. The whistleblower can obtain a large monetary award if he follows the “complex” procedures set forth in the FCA when seeking to enforce the anti-fraud law.
The second section contains an anti-retaliation provision. This section deals with the wrongful discharge or harassment of a whistleblower by the defendant. Under the law, any whistleblower who makes files a qui tam suit is protected under a powerful wrongful discharge provision provided “double back pay” and other damages. The 1986 provision also enhancing the whistleblower’s role in the suit and enlarged his or her share to between 15-25% where the government participates in the litigation or 25-30% where the government declines to participate in the litigation. Additionally, the law mandates that the defendant pay a successful whistleblower’s attorney's fees.
Since the 1986 Amendments, qui tam suits have proved successful beyond even Congress' expectations. As awareness of the qui tam provisions spreads, more and more whistleblowers are coming forward:
Year Number of Suits
1987 33
1988 60
1989 95
1990 82
1991 90
1992 119
1993 131
1994 221
1995 279
1996 363
1997 530
1998 417
1999 483
2924
Recoveries for the United States have also skyrocketed as a result of the legislation and awareness of the law.
Year Recoveries
1987 200,000.00
1988 355,000.00
1989 15,000,000.00
1990 40,000,000.00
1991 72,000,000.00
1992 134,000,000.00
1993 173,000,000.00
1994 379,000,000.00
1995 244,000,000.00
1996 127,000,000.00
1997 625,000,000.00
1998 331,000,000.00
1999 $458,000,000.00
$2,598,555,000.00
State Causes of Action: As a result of the effectiveness of the False Claims Act, numerous states have also passed state versions of the False Claims Act. These state laws permit whistleblowers to share in the proceeds in the fraud committed against state and local governments. The following is a list of states with versions of the FCA:
Arkansas ARK. CODE ANN. Sec 20-77-901 et seq. (2000). [Medicaid]
California Cal. Gov’t Code Sec 12650 et seq. (DEERING 2000). [General]
Delaware Del. CODE. ANN. tit. 6, Sec 1201 et seq. (2000). [General]
D.C. D.C. CODE ANN. Sec 1-1188.13 et seq.(2000). [General]
Florida FLA. STAT. 68.081 et seq. (2000) [General]
Hawaii HAW. REV. STAT. Sec661-22 et seq. (2000). [General]
llinois 740 ILL. COMP. STAT. ANN. Sec 175/1 et seq. (2000).[General]
Louisiana LA. REV. STAT. ANN. Sec 46:439.1 et seq. (2000). [Medical
Assistance]
Massachusetts M ASS ANN. LAWS CH. 12, Sec5(A)-(O)
Nevada NEV. REV. STAT. Sec357.010 et seq. (1999). [General]
Tennessee TENN. CODE. ANN. Sec 71-5-181 et seq. (2000). [Medicaid]
Texas TEX. HUM. RES. CODE Sec 36.001-36.117
Utah UTAH CODE ANN. Sec 26-20-1 et seq. (2000). [Medicaid]
Virginia [designated: Virginia Fraud Against Taxpayers Act,
signed April 17, 2002; effective Jan. 1, 2003]
In many cases, a company is not allowed to retaliate against an employee for disclosing the information. If retaliation does occur, whistleblowers are cautioned not to delay investigation of their possible legal remedies, as many of the laws have very short time limits.