A business may defraud the government in many ways, including charging for services that were never carried out or providing the government with inferior or defective products. Georgia and the federal government have implemented powerful laws to deter this kind of unscrupulous practice. These laws allow private individuals to bring a claim on behalf of the government and to receive a significant share of the amount recovered. These actions against businesses are often referred to as "qui tam" actions." If you are an employee of a business that is defrauding the government through false claims, you should contact an experienced Georgia false claims attorney to discuss the possibility of bringing a qui tam action.

The main purpose of these laws is to allow the government to recover money it lost due to fraudulent activities. This includes the costs and delays which fraudulent claims create. In addition, these claims deter businesses from defrauding the government in the future, since the awarded damages can be very high depending on the severity of the fraud. In fact, it is not uncommon for businesses which defraud the government to be held liable for over $1 million, especially in the health care industry. The amount awarded is entirely dependent upon the specific facts of each case which an experienced attorney can help explain.

The False Claims Act was originally passed to stop fraud by defense contractors, but it has since grown to cover health care, pharmaceutical, and other industries. Even universities and similar research institutions may be held liable for misusing grant money. Today, the health care industry is involved in more than half of these whistleblower suits. A business which defrauds the government may be held liable for each act of fraud between $5,000 and $10,000 as well as three times the amount of damage the United States sustained.

If the government chooses, it may attempt to intervene and take control of a false claim suit. In these situations, the party bringing the suit is generally entitled to 15 to 25 percent of the amount recovered. If the government does not intervene, the party bringing the suit may be entitled to 25 to 30 percent.

Georgia's false claims law was modeled after the federal law and is similar in many ways. However, it is more restrictive than the federal law. Georgia law only provides for qui tam actions for persons or businesses who defraud the Georgia Medicaid program. Georgia law also does not allow public employees or officials to bring qui tam actions in many instances. Yet, the damages a business must pay can still be substantial. The law allows for a penalty between $5,500 and $11,000 for each false claim. In addition, the business may be liable for three times the amount of damage the Georgia Medicaid program sustained due to the fraud. The plaintiff is generally entitled to the same percentages as with the federal law.

A plaintiff may need to prove different elements based on the circumstances of his or her case and whether federal or Georgia law is being utilized. However, there are generally at least three elements that need to be proven. First, the plaintiff must show that the defendant presented a claim for payment or approval to the government. Second, the claim must have been false or fraudulent. Third, the business must have known the claim was false. Again, these elements may differ depending on the case, and an experienced false claims attorney will explain exactly what needs to be proven.

A business which has defrauded the government may use several defenses in order to stave off liability. For example, a qui tam action is generally barred when the plaintiff learned of the fraud solely through information that was revealed to the public. Federal law requires the plaintiff to have direct and independent knowledge of the information and to voluntarily provide the information to the government. The specific facts of each case will determine if the plaintiff did have direct and independent knowledge.

A business may also argue that it did not knowingly present false claims to the government. However, actual knowledge is not necessarily required under federal law. A plaintiff may show in the alternative that the defrauding business acted with deliberate ignorance or reckless disregard. Many other defenses may exist depending on the specifics of each false claims case. An experienced Georgia attorney should be consulted in order to put together a powerful case which accounts for the many defenses available to defendants.

The information provided above is a very general summary of the law regarding this particular legal issue at the time this text was prepared. Because this analysis is subject to change depending upon recent cases and developments, you should not rely on this summary as legal advice. As with any important legal question, you should always consult with a lawyer licensed to practice in your jurisdiction. Our lawyers are licensed to practice in all Georgia state and federal courts.