The word "whistleblower" is usually seen within a negative context, used alongside slang words such as "narc," "snitch," "tattletale," and "weasel." When individuals choose to engage in shady behavior (ripping off the government by cutting corners on taxes) the culprits involved are rarely eager to be discovered. When someone does discover their unlawful deeds, they often ask for the discovering individual to keep quiet, potentially even involving blackmail to insure that their actions remain a secret from the Internal Revenue Service. While it may seem intimidating or even scary to consider reporting fraudulent activity to the government, a law called the False Claims Act actually rewards whistleblowers for revealing the truth about their discovery. Continue reading to learn more about the monetary rewards that may be available to you if you choose to blow the whistle on fraud:
The Fascinating History of the False Claims Act
The False Claims Act is not a new law that has just arisen in recent years. In fact, the act appeared in 1863 under the orders of President Abraham Lincoln during the Civil War. While looking to order decent supplies for Union troops, military personnel discovered a shocking reality when supplies were delivered: the supplying companies were ripping them off and committing fraud, providing cheap substitutes for what they had actually ordered. The situation included deliveries such as substitutes "for leather, something no better than brown paper" and artillery shells that had been filled not with gunpowder, but simple sawdust.
The government was rightly upset about this turn of events, and made a promise to give 50% of any recovered money to whistleblowers who would be willing to report individuals who committed the fraud.
From Civil War to Modern Day
Over the years, the False Claims Act has taken on different forms and changes, especially to update the act to modern laws and regulations in our current day. Today, with the help of professionals like the Law Offices Of Doonan & Doonan Inc, you can actually file a lawsuit on behalf of the government as a whistleblower for any fraudulent situation you are aware of-- whether your connection to that person be through personal or work related connections.
While times have changed and situations that apply under the act may be different (tax evasion instead of faulty supplies), one thing has not changed: the government still rewards those who do the right thing through blowing the whistle on fraud. Today, whistleblowers can expect to be rewarded with 15 to 20 percent of claimed damages in a successful lawsuit. While it may be hard to stand up to someone doing the wrong thing, standing firm against wrongdoing certainly has it's privileges.