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 Utah, as in other states, individuals can bring qui tam actions under the federal False Claims Act when they have evidence of someone defrauding the federal government. These actions allow a private party, known as a relator, to sue on behalf of the government and potentially receive a portion of the recovered funds if the lawsuit is successful. The relator could receive up to 30% of the government's recovery. This type of lawsuit is also commonly referred to as a whistleblower action, as the relator is exposing fraudulent activities to the government. While the federal False Claims Act is applicable nationwide, Utah also has its own state-level False Claims Act, which allows for similar actions to be brought when state funds are at issue. The specifics of the Utah False Claims Act can be found in the Utah Code, and it provides a framework for whistleblowers to report fraud against the state government. The state act is designed to work in tandem with the federal law, ensuring that both state and federal governments can recover funds lost to fraudulent activities.