Financial fraud and waste can happen everywhere, and whistleblowers play an essential part when it comes to stopping government fraud – and that’s why the government offers financial incentives in the form of compensation for qui tam suits.
Qui tam lawsuits refer to a provision within the False Claims Act that empowers private citizens to file lawsuits on behalf of the government. These lawsuits typically involve cases of fraud against federal programs and contracts, such as Medicare or defense contracts.
What are the financial rewards of whistleblowing?
The whistleblower, or “realtor,” in a qui tam lawsuit often stands to recover a great deal of money in exchange for their information and actions.
According to the False Claims Act, the minimum a whistleblower may receive is 10% of whatever the government stands to recover after a successful lawsuit – but the actual percentage can be much higher. In cases where the government intervenes and leads the legal proceedings, realtors can receive between 15% and 25% of what is recovered. (The exact percentage is usually related to the value of the relator’s information and the extent of their involvement in the proceedings.)
If the government does not participate in the litigation process and the relator proceeds on their own with the lawsuit, the rewards can be as high as 30% of the verdict. Since qui tam claims typically involve millions of dollars, that can be significant.
One of the most important things to do as a whistleblower is to protect your position as a realtor because that is how you ultimately get reimbursed for your bravery. Legal guidance is wise.