Up to 10 percent of the United States annual budget is paid to companies or persons who are defrauding the government. At McKnight & Kennedy LLC, we work with those who have the courage to expose people and companies who cheat the government. McKnight & Kennedy LLC can help you navigate your False Claims case successfully.

Fraud Cases

McKnight & Kennedy primarily handles fraud cases, also known as False Claims Act cases. This Act was designed to encourage private citizens to help fight government fraud by acting as a whistleblower—and the entire process can be very confusing. Before filing to fight an incidence of fraud, your claim must be properly investigated and presented, which demands that you obtain attorneys experienced in handling fraud cases.

Here’s how the Qui Tam experience works:

  • If a person knows of fraud against the government, this person may retain a lawyer and file a court case (lawsuit) under seal (meaning that it is kept secret during this initial phase) in a United States District Court against the company or person committing the fraud. At the same time the relator (person filing) is required to file a written disclosure with the United States disclosing substantially all of the evidence and witnesses who support the complaint.
  • After the case is filed, the U.S. Attorney investigates the lawsuit and allegations of fraud for sixty days. If he/she believes the fraud lawsuit is meritorious, the United States Government takes over the case and either enters into a settlement or pursues the lawsuit against the wrongdoer. In most cases, the government investigates the case for two or more years. During this time period, the case remains under seal in the court. When a case is under seal, no one knows about it except the government and the company under investigation. Usually, the identity of the whistleblower is unknown to the company during much of the time the case is under seal. The court records in a case under seal are not available to the public or the press.
  • The whistleblower still retains his/her right to a portion of the proceeds in the Qui Tam fraud lawsuit resulting in a successful settlement or recovery, even though the government has taken over the legal case. (The government intervenes in approximately 25% to 33% of the cases.) If the government prosecutes the claim, then the relator is entitled to receive “at least 15% but not more than 25%” of the proceeds. 31 USC § 3730 (d)(1) (1999)
  • If the government does not intervene, the federal whistleblower, through the lawyers he or she has retained, pursue the lawsuit on his/her own. If the lawyers are successful in proving fraud against the government, the law requires the wrongdoer to pay substantial penalties, which can be assessed up to three times the amount that the wrongdoer fraudulently stole from the government and, in reality, from the taxpayers. In addition, a mandatory civil penalty of between $5,500.00 and $11,000.00 per false claim will be imposed. The private citizen whistleblower can receive between 15% and 30% of the lawsuit recovery.

Have questions about fraud cases? Contact us!