The federal False Claims Act is the most widely-used whistleblower statute and has resulted in the recovery of tens of billions of taxpayer dollars. In addition, many states have passed their own False Claims Acts to combat fraud, and several federal agencies have established whistleblower programs. To learn more about whistleblower laws, follow the links on this page or watch the video below, in which our co-founder Robert M. Thomas, Jr., explains the False Claims Act and other whistleblower programs.
The False Claims Act is the U.S. Government’s primary weapon for combatting fraud. It allows whistleblowers to sue persons or entities that are defrauding the government and recover damages and penalties on the government’s behalf. The statute provides whistleblowers financial rewards as well as job protection against retaliation.
Many states and some localities have passed False Claims Acts modeled after the federal FCA. Most of these statutes include qui tam provisions that allow a whistleblower bring an action on behalf of the state or locality and to receive a share of any recovery.
In addition to the False Claims Act, other federal statutes have created programs to incentivize and reward whistleblowers for coming forward to report fraud. The most notable such programs are administered by the Securities and Exchange Commission (for violations of securities laws), the Commodity Futures Trading Commission (for violations of the Commodity Exchange Act), and the Internal Revenue Service (for tax fraud). Congress also has created programs to reward whistleblowers who expose fraud in the banking industry, problems with motor vehicle safety, and violations of laws to protect the environment and wildlife.