If you work for the government or as a government vendor, you might encounter situations where someone is defrauding the government. “Qui tam” refers to a legal provision that helps make things right in these situations. It allows private individuals to file lawsuits on behalf of the government to stop fraud and recover stolen funds. Understanding the origins of qui tam can help you grasp its importance in the fight against fraud.
The roots of qui tam
The concept of qui tam dates back to England during the Middle Ages. The term comes from the Latin phrase “qui tam pro domino rege quam pro se ipso in hac parte sequitur.” This phrase means “he who sues in this matter for the king as well as for himself.” This principle allowed private citizens to help enforce the law. In doing so, they would share in any penalties or fines collected.
The birth of qui tam in the U.S.
Qui tam provisions became part of U.S. law in 1863 during the Civil War. At that time, fraud by contractors supplying the Union Army was rampant. Contractors provided substandard goods, overcharged for supplies, or billed for items never delivered. To combat this fraud, Congress passed the False Claims Act (FCA), which included qui tam provisions. This empowered citizens to sue on behalf of the government and share in any recovered funds.
Key features of the False Claims Act
The False Claims Act remains a powerful tool against government fraud. Key features of the FCA include:
- Whistleblower rewards: “Relators” or “whistleblowers” can receive a portion of the recovered funds. This portion is typically between 15% and 30%.
- Protection for whistleblowers: The FCA protects whistleblowers from retaliation by their employers. This allows them to report fraud without the fear of facing negative consequences.
- Government intervention: The government can choose to intervene and take over the case. If government intervention doesn’t occur, the whistleblower can still proceed with the lawsuit.
Modern relevance of qui tam
The origins of qui tam in the United States highlight its longstanding role in combating fraud.
Today, qui tam lawsuits continue to expose and stop fraud against the government. These cases have recovered billions of dollars in taxpayer funds. They help hold companies and individuals accountable for their actions. Whistleblowers have uncovered fraud in various sectors, including healthcare, defense contracting, and education.
If you see fraudulent actions, the qui tam process can help you protect taxpayer money. This way, you can use the protections and incentives offered by the FCA to come forward, making a significant difference. In doing so, you play a role in ensuring individuals use government resources responsibly.