Jonathan K. Tycko Libel, Slander and Defamation Law Blog on Lawyers.com

The American Recovery and Reinvestment Act of 2009

Friday, July 17, 2009 by Jonathan K. Tycko

The American Recovery and Reinvestment Act of 2009 (ARRA) has been a boon to private businesses seeking to land a contract with the U.S. government. At least $40 billion of the $787 billion stimulus package has been earmarked for federal contractors and suppliers. All new contractors who work with the federal government should be well-versed in the False Claims Act (FCA). This is a unique legal remedy that aids both the federal government and whistleblowers when it comes to contractor fraud.

In the event a contractor submits a false claim for payment to the federal government, the Department of Justice’s whistleblower lawyers can bring criminal or civil proceedings against them. Damages can be as high as three times the amount that the government has paid the contractor, plus extra fines. In 2008, the Department of Justice used the FCA to recoup more than $1.3 billion from those doing business with the government.

What’s more, the FCA allows private citizens, or whistleblowers, who are current or former employees of the contractors, to bring their own civil actions to recover money on behalf of the government. Known as qui tam relators, these whistleblowers can share nearly one-third between 15% and 25% of the triple damages and fines they recover on behalf of the government. In addition, under the ARRA and other whistleblower laws, if a qui tam relator wins his or her case, the court can also award attorneys’ fees.

Prospective contractors hoping to receive stimulus project funds should communicate with the government openly and honestly. If you are an employee of a government contractor, and believe that the contractor is committing fraud on the government, you may want to contact a qui tam attorney. Hundreds of whistleblower cases are filed each year, and the Department of Justice pursues only the ones that are presented to it properly, and that have the most merit.

Tycko & Zavareei LLP - False Claims Act

2000 L Street, N.W. Suite 808 Washington, D.C. 20036

FraudFighters.Net

Posted at 10:04 AM

Topic: Libel, Slander and Defamation