Under the False Claim Act’s reward provision, if your original information results in a sanction against a fraudster, you are entitled to a minimum payment of 15% and a maximum payment of 30% of the proceeds collected by the government. The government is required to make these payments. If the government refuses to pay the required reward, you can challenge that denial in court.
There are no “caps” on awards; the value of the information the whistleblower provides serves as the basis for the amount of the award. The better the information, the larger the sanction. The larger the sanction, the larger the award. The False Claims Act qui tam provision incentivizes whistleblowers to provide the government with the best evidence, related to the biggest frauds.
Make sure you obtain an official acknowledgement from the SEC, IRS, CFTC, FinCEN, and/or the SOT confirming receipt of your complaint or claim application. Thereafter, fully cooperate with the investigations conducted by these law enforcement agencies.
The IRS, SEC and CFTC have detailed rules governing their programs. Make sure you follow these published rules. It is anticipated that the SOT will publish procedures shortly.
The better the information provided, the better the potential for a successful prosecution, and the higher the financial reward. All rewards are paid directly from the collected fines.
The United States is serious about enforcing the qui tam reward provisions in cases in which a whistleblower meets all of the requirements to obtain a reward. Between 1987-2019, the United States has paid whistleblowers $7.3 billion in qui tam rewards.
By the end of FY 2019, whistleblowers had triggered the recovery of $44.7 billion in from fraudsters, while the government was able to recover only $17.3 billion in cases for which there were no whistleblowers.