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History of Qui Tam Litigation and the False Claims Act (FCA)

Originally enacted in 1863, the False Claims Act (FCA) was part of a concentrated effort by the Federal Government to combat defense contractor fraud during the Civil War. Although the statute has undergone modifications throughout the years, its purpose remains the same: To prevent fraud against the United States.

While there is little extraordinary about much of the FCA, the unusual enforcement mechanisms warrant examination. Within the FCA, two means of enforcement are outlined. Not surprisingly, the first vests primary authority for enforcement of the FCA in the hands of the Attorney General of the United States.

However, the second mode of enforcement is somewhat more remarkable. These provisions, referred to as “qui tam” provisions, vest additional authority for enforcement of the FCA in the hands of private citizens, who are authorized to bring suit on behalf of the United States, with the promise of a share of any monies recovered serving as incentive.

These suits, commonly known as “qui tam” actions, permit private individuals to sue on behalf of the United States to recover money that was fraudulently obtained by a person or corporation. The rationale behind sanctioning such suits was perhaps best expressed by the Supreme Court in United States ex rel. Marcus v. Hess: “... One of the least expensive and most effective means of preventing frauds on the Treasury is to make the perpetrators of them liable to actions by private persons acting, if you please, under the strong stimulus of personal ill will or the hope of gain.”

source: Federal Law Enforcement Training Center

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see also:

Whistleblower Law Learn about Whistleblower Law
Learn how to protect your rights under the Whistleblower law

Government Involvement Qui Tam Law Firm: Government Involvment in Qui Tam Case
The U.S. Government may elect to interviene in a Qui Tam lawsuit.

Learn More Whistleblower Attorney - Learn about filing a lawsuit and your rights
Learn about legal protections afforded whistleblowers from an attorney

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