Other Bail Out Fraud Lawsuits and Qui Tam Lawsuits
The Bail Outs of AIG, Fannie Mae, and Freddie Mac also may lead to potential qui tam claims as approximately $300 Billion in government funds are being used to save these private and quasi public entities. The federal takeover of Fannie Mae and Freddie Mac places a conservatorship on government sponsored enterprises Fannie Mae and Freddie Mac by the US Treasury in September 2008.
American International Group, Inc. (AIG) has also been the recipient of a large government bail out. Like the TARP money, the AIG bail out needs to used for its intended purpose and not to enrich the wealth of a few that find ways to steal bail out money for themselves. Whether you are for or against these large bail outs, we would all agree that it is important that none of this money be fraudulently taken and used to enrich a few individuals.Economic Incentives for Whistleblowers Lawsuits, Government Fraud Lawsuits, and Qui Tam Lawsuits
Whistleblower Law Suits or Qui Tam Lawsuits, allow whistleblowers to seek compensation on the government's behalf from companies and people that have defrauded taxpayers out of government money.
When a government imposes a penalty, for the doing or not doing an act, and gives that penalty in part to whistleblowers that will sue for the same, and the other part of the recovery goes to the government, and makes it recoverable by action, such actions are called "qui tam actions", the plaintiff is suing on their own behalf as well for the government and taxpayers.
Qui tam provisions of the False Claims Act are based on the theory that one of the least expensive and most effective means of preventing frauds on taxpayers and the government is to make the perpetrators of government fraud liable to actions by private persons acting under the strong stimulus of personal ill will or the hope of gain.
The strong public policy behind creating an economic gain for whistleblowers is that the government would be significantly less likely to learn of the allegations of fraud, but for persons in certain positions with specialized knowledge of fraud that has been committed. Congress has made it clear that creating this economic incentive is beneficial not only for the government, taxpayers, and the realtor, but is an efficient method of regulating government to prevent fraud and fraudulent schemes.
The central purpose of the qui tam provisions of the False Claims Act is to set up incentives to supplement government regulation and enforcement by encouraging whistleblowers with specialized knowledge of fraud going on in the government to blow the whistle on the crime.
The whistleblower's share of recovery is a maximum of 30 percent and the government's prior knowledge of fraud now does not necessarily bar a whistleblower from collecting lost revenue. If the government takes over the lawsuit, the relator can "continue as a party to the action." The defendant is also required to pay for the relator's attorney fees. The whistleblower is also protected from retaliatory actions by his or her employer. As a result a 1986 amendment to the False Claims Act, qui tam lawsuits have increased dramatically. Though the amendment was first made for corrupt defense contractors, the amendment has uncovered billions of dollars in health care fraud and will probably apply to fraudulently obtained TARP and Bail Out Funds.
TARP Financial Fraud Lawsuits, Theft of Government Funds, and Bailout Lawsuits
Through Whistleblower Lawsuits, Qui Tam Lawsuits, and other Government Fraud Lawsuits, hundreds of billions of dollars have been recovered from fraudulent government contractors that have stolen large amounts of money from the government and taxpayers.It is extremely important that Whistleblowers continue to expose fraudulent billing practices and unnecessary treatments that cost billions of dollars. For more information on TARP Fraud Lawsuits, Bailout Fraud Lawsuits, Government Fraud Lawsuits, and other Qui Tam Fraud Lawsuits, please go to the following TARP Bailout Fraud Web Page.