The False Claims Act and similar state laws reward individuals who report fraud against the government. Successful whistleblowers may recover a reward of at least 15% and up to 30% of the funds they help the government recover. Payments for whistleblowers can be substantial. In the last decade alone, whistleblowers under the Federal Claims Act have recovered almost $10,000,000,000 for the United States and received over $1,600,000,000 in reward money. Payments to individual whistleblowers often exceed millions of dollars.
In addition to the False Claims Act and parallel state laws, the IRS also recently established regulations that provide rewards for whistleblowers who notify the IRS about tax evasion. Similarly, under the Dodd-Frank Financial Reform Act, individuals who provide the SEC with original information about corporate misconduct receive an award if the information leads to a successful recovery by the SEC.
Whistleblower claims often involve the following industries and issues, among others: