Witnessing fraudulent and unethical actions while working overseas as a civilian employee can be quite distressing. You’re also thrust into a position where you have to take action, but where do you start? Is there a legal precedent for such cases?
Yes, it’s called a Qui Tam claim. It empowers individuals like you to sue on behalf of the U.S. government after witnessing illegal actions taken by contractors and other entities working overseas for the military or government. You also receive crucial whistleblower protection.
Learn more about the process in this guide for Defense Base Act (DBA) clients.
What Is a Qui Tam Claim?
The roots of this legal mechanism can be traced back to the mid-19th century with the passage of the False Claims Act of 1863.
The act was created to deter fraudulent activity by arms suppliers during the Civil War, such as filing false claims for payment. Today, these military suppliers are called defense contractors.
The False Claims Act (FCA) continues to this day under the legal code, 31 U.S.C. § 3729 et seq. It serves to protect against fraudulent claims of payment, as well as misuse of government property. A claim can also be filed if a contractor refuses to pay money owed to the U.S. government.
A Qui Tam claim is the whistleblower lawsuit one must file under the False Claims Act. If a civilian working overseas witnesses FCA violations, like fraudulent payment claims, they can sue on behalf of the government as a whistleblower.
The purpose of these legal mechanisms is to recover any funds stolen from the U.S. government or military. Incentivizing private citizens to report violations (and file Qui Tam claims) is vital to this legal process.
What Are Common Types of Qui Tam Claims?
Presenting false or fraudulent payment documents to the U.S. government is the most common reason for filing Qui Tam claims under the False Claims Act. However, the FCA is a broad act that covers even more situations, like falsifying statements to the government.
A private citizen may witness a contractor using false statements to hide funds they’re obligated to pay, also known as a reverse false claim. That’s grounds for a Qui Tam claim under the FCA.
Qui Tam claims are most commonly seen in any government or military program that involves a significant amount of federal funding, such as:
- Healthcare (i.e., Medicare and Medicaid fraud)
- Defense contracts
- Government grants
It must be proven that the defendant “knowingly” committed a fraudulent act, making witnesses vital to legal claims. Under the FCA, a defendant must:
- Possess actual knowledge of the fraud
- Act with deliberate ignorance of fraudulent activity
- Act with reckless disregard
Hiring a DBA lawyer who specializes in overseas Qui Tam claims can help civilian workers navigate such complex cases and sort out eyewitness evidence.
What Are Examples of DBA Contractor Fraud?
Since Qui Tam claims are relevant to fraud cases, a DBA civilian can file a claim in a variety of instances.
Let’s say a defense contractor was hired to provide housing on an overseas military base. The contractor submits an invoice billing the U.S. government for work completed under the contract.
A civilian employee knows that the contractor is using poor-quality materials not outlined in the contract. These materials cost less, but the contractor is charging the government the amount of the more expensive materials. Not only is this an act of fraud, but there are also potential health and safety hazards.
Another example concerns security. A DBA contractor may be hired to provide security, but they knowingly failed to meet the security requirements outlined in the contract. However, the contractor is billing the U.S. government for services not provided.
If a private individual witnesses such activities, they may file a Qui Tam claim as a relator. A relator is the term given to a civilian witness who possesses firsthand knowledge of fraudulent activity.
Frequently Asked Questions
What’s the First Step in a Qui Tam Claim?
The first step is to consult a lawyer who specializes in Qui Tam claims.You can also talk to a DBA lawyer with Qui Tam expertise if you witnessed fraud committed by a DBA contractor overseas.
What Evidence Is Needed for a Qui Tam Claim?
The witness, or relator, must provide proof of fraud to an attorney. Types of evidence include:
- False invoices
- Altered records or statements
- Email correspondence
- Proof of subpar work delivered (and improperly billed)
- Accounting spreadsheets
- Internal reports detailing fraudulent activities
- Proof of non-compliance with project specifications
If possible, a relator may furnish audio and video evidence. An example would be a previously recorded virtual meeting for later viewing.
How Do You Draft a Qui Tam Complaint?
After gathering all evidence, an attorney will draft the complaint. This document must detail the fraudulent activity accurately, including the amount of federal funds taken and the DBA entities involved in the act.
Where Do You File a Qui Tam Claim?
The complaint is filed with the Department of Justice. An attorney will also provide all evidence and a disclosure statement to the DOJ.
Claims are filed in U.S. Federal Court under seal, ensuring the complaint remains secret from the defendant and the public. Confidentiality prevents the destruction of evidence and protects the whistleblower (relator) from immediate retaliation.
The seal must remain in place for a minimum of 60 days, but will often last for months or even years in some Qui Tam cases.
Is There a Government Investigation?
Yes, the DOJ will conduct a proper investigation. The DOJ may also decide to intervene and take over the case.
If a Qui Tam claim is successful, DBA defendants must pay damages and civil penalties. The FCA also requires whistleblowers to receive financial compensation.
Consult With a Lawyer
Are you considering filing a whistleblower lawsuit over DBA contractor fraud? Your first step is to get expert legal advice on Qui Tam cases. Talk to a lawyer about the details of a potential Qui Tam claim, including steps for reporting fraud.
Work with a law firm that specializes in the Defense Base Act. The attorneys at Barnes Law Firm represent DBA clients across the globe, ensuring they receive the compensation and protection they deserve. Barnes Law attorneys are licensed to practice before the United States Federal Court of Appeals for the Fifth Circuit.
Contact us to discuss your case.