Under the False Claims Act (FCA), citizens working in a variety of industries may file a qui tam lawsuit if they suspect their company is committing fraudulent actions, usually financial in nature, against the federal government. As "relators" or "whistleblowers," they may receive a significant portion of the damages recovered in the suit, if it is successful. There are several different types of qui tam fraud which are actionable under the FCA.
The two dominant types of fraud in this industry are off-label marketing and pharmaceutical kickbacks. Off-label marketing refers to the forbidden practice of promoting drugs for off-label uses. If a drug is subsidized for its off-label use, the pharmaceutical company behind it has committed fraud and can be legally obligated to pay back the undue subsidies along with other damages.
Under the Anti-Kickback statute established in 1987, pharmaceutical companies cannot offer incentives to physicians in exchange for the biased prescription of their products. Both pharmaceutical companies and involved physicians may be held liable for their actions under the FCA.
Other types of pharmaceutical fraud include best price fraud, Medicaid price reporting, manufactured compound drugs, off-label audits, and more.
The most common fraudulent practices in the healthcare industry include the submission of false claims, excessive billing, and receiving payments from healthcare programs, such as Medicare or Medicaid, without complying with their stringent regulations.
Other types of healthcare fraud include Medicare fraud, Start Statute violations, ambulance fraud, medical equipment fraud, medical device fraud, and more.
Most cases of fraud in the financial industry do not involve the government; however, those that do can cost the government up to hundreds of millions of dollars in taxpayer funds. The following are the more common types of finance fraud against the government:
- Procurement Fraud - Overbilling for goods and services or failing to meet contractual obligations and specifications
- Mortgage Fraud - Submitting falsified information for the sake of securing undue loan guarantees, mortgage insurance, and other forms of government financial assistance
- TARP Fraud - Submitting falsified information to receive financial assistance under the Troubled Asset Relief Program (TARP), the true purpose of which is to stabilize institutions that would severely impact the economy in the event of a collapse
Due to the amount of money that is usually involved in these types of cases, whistleblowers in the financial industry often receive lucrative rewards for their services.
Defense contracting has become an especially profitable industry in recent years due to the wars in the Middle East. However, there are some defense contractors for whom the regular gains aren’t enough. These companies turn to fraud against the Department of Defense for the sake of profit, committing one or more of the following actions:
- Providing substandard products
- Committing Truth in Negotiations Act (TINA) violations
If you have knowledge of a company’s fraudulent actions, please contact the reliable New York qui tam lawsuit lawyers at Wingate, Russotti, Shapiro, Moses & Halperin, LLP today. We will give you advice on whether the claim is viable. If your claim is actionable, we will do everything we can to ensure your interests are protected. For more information on what our firm can do for you, call (212) 986-7353.