In a qui tam (pronounced Kee-tam) action a private party (person or entity) brings an action by filing a lawsuit or claim on behalf of the government. The private party is called the relator and the government is the real plaintiff.
For example, under the federal False Claims Act a private party may bring a qui tam action against a party who has defrauded the federal government by submitting false claims for goods or services. See 31 U.S.C. §3279. If the lawsuit or claim is successful, the relator may receive up to 30% of the government’s recovery.
Because the relator is bringing the fraud to the attention of the federal government they are sometimes referred to as whistleblowers and the lawsuit or claim may be referred to as a whistleblower action.
Qui tam actions may originate in most any of the federal government’s departments, but two of the most common are the military (defense contractors selling goods and services to the U.S. government) and health care (Medicare and Medicaid services sold to the U.S. government). The Fraud Section of the United States Department of Justice generally investigates qui tam claims.
Most states also have a law known as the False Claims Act that that provides for qui tam or whistleblower actions brought on behalf of the state government. These laws vary from state to state and are usually located in a state’s statutes.
In Ohio, qui tam actions are facilitated by both federal and state laws. Under the federal False Claims Act (31 U.S.C. § 3729), a private party, known as a relator, can file a lawsuit on behalf of the federal government against individuals or entities suspected of defrauding government programs. This is often in areas such as defense contracting or healthcare services involving Medicare and Medicaid. If the action is successful, the relator may receive a portion of the recovered funds, typically up to 30%. Ohio has its own version of the False Claims Act, which allows for similar whistleblower actions at the state level. These state-level statutes enable private parties to bring actions against those defrauding state government programs, with the potential for a reward if the government recovers funds as a result of the lawsuit. The specific provisions and potential rewards under Ohio's False Claims Act can be found within the state's statutes and may differ in detail from the federal law.