Whistleblower law exists to expose and eliminate fraud against the government, as well as fraud and corruption within corporations and other places of employment. A whistleblower is one who seeks to “blow the whistle” and expose those responsible for the fraud. Increasing whistleblower legislation, such as the False Claims Act (“FCA”), has been passed into whistleblower law in order to protect whistleblowers from the various forms of whistleblower retaliation employers could potentially inflict on these employee whistleblowers.

Types of Fraud Uncovered by Whistleblowers

The FCA typically applies to fraud involving almost any federally funded grant or contract. The major exception is tax fraud, which is covered by its own special IRS whistleblower law. There are numerous ways, however, in which the FCA is used to uncover fraud against the state and federal governments, while also protecting the employee whistleblower.

Forms of fraud include:

  • Health Care Fraud: Fraud in the healthcare industry ranges from corrupt practices within pharmaceutical companies to corrupt practices within hospital facilities. Pharmaceutical companies partake in fraud against the government when they lie about the true wholesale price of prescription drugs. Hospitals and other medical facilities partake in fraud when billing for services that were never provided, performing inappropriate or unnecessary medical procedures, billing for unlicensed or unapproved drugs, and billing for doctor rates for work actually performed by a nurse or resident intern.
  • Corporate Fraud: Examples of corporate fraud include failures to file income tax returns, filing false tax returns, the orchestration of kickback schemes, and embezzlement.
  • Military Contracts Fraud: Military contracts are conducted fraudulently when the intention is to exploit members of the military. Conduct such as supplying defective parts to military aircraft or fixing rates for moving household goods that belong to U.S. military and civilian families.
  • Education Fraud: University educators have been accused of fraud for overstating the number of hours they work on projects funded by grants from Centers for Disease Control and Prevention. Suits for fraud have also been filed where job training schools inflate graduation and job placement statistics in order to secure federal funding.

Contact a Whistleblower Lawyer Today

If you are an employee who would like to blow the whistle on fraud or an employee who is experiencing retaliation from your employer for blowing the whistle on fraud, contact an experienced whistleblower lawyer for a free and confidential consultation.

Published November 17, 2011 by