The False Claims Act, which is also commonly referred to as Qui Tam or
the Lincoln Law is one of the oldest laws in the United States. The first
whistleblower law was enacted into legislation in 1778, with an updated
more powerful False Claims Act passing in 1863 during the American Civil
War as a result of defense contractor price gouging. With well over $30
billion dollars in taxpayer money recovered, the yearly recoveries under
this Act continue to grow. In the year 2016 alone the Justice Department
recovered over $4.7 billion dollars under The False Claims Act.
How does it work? When a whistleblower, also known as a relator, has actual
knowledge of fraud being perpetrated involving federal or in some instances
state money they file a sealed complaint, which is then thoroughly investigated
by the Department of Justice. The DOJ will then determine whether or not
the United States wants to intervene. If not, the relator can still bring
the claim and prosecute the action on behalf of the United States, but
the government would not be a party. Now besides from being able to save
Uncle Sam and all of us taxpayers bundles of money for the fraud, the
whistleblower is also entitled to a reward ranging from 15%-30% of the
government’s recovery. These rewards are often very substantial,
considering that recoveries in these cases are often in the hundreds of
millions or even billions of dollars.
Mortgage and housing related fraud is one of the most widespread areas
of fraud in the country. In fact, the Department of Justice has recovered
more than $7 billion dollars in housing and mortgage claims in the past
seven years. Since the government insures the majority of mortgages under
the Federal Housing Administration (FHA) often unscrupulous lenders originate
and endorse residential mortgages without meeting the proper requirements
for being insured. In 2016 Wells Fargo (how astonishing) was liable for
$1.2 billion dollars for such practices, as well as Freedom Mortgage Corp.
for $113 million. Now even at the low end of 15% that would equate to
a reward for the whistleblower to the tune of $17 million and $180 million
If you or a family member or friend work at a financial institution or
mortgage company and see something that isn’t kosher call Loan Lawyers
for a free confidential consultation. Navigating the waters on how to
file these claims properly isn’t something to go at alone. We are
here to help you with the often difficult process of making sure your
claim is properly filed.
For more information about Qui Tam visit usonline here.
Loan Lawyers has helped over 5,000 South Florida homeowners and consumers
with their debt problems, we have saved over 1,500 homes from foreclosure,
eliminated $100,000,000 in mortgage principal and consumer debt, and have
collected millions of dollars on behalf of our clients due to bank, loan
servicer, and debt collector violations, negligence and fraud.
Contact us for a free consultation to see how we may be able to help you.