The person who first files a lawsuit (qui tam) regarding fraud against the federal government, the State of New York, or New York City may receive up to 30% of the recovered amounts. This is based on the False Claims Act and its New York equivalents. A similar reward program, also offering up to 30%, is run by the IRS.
Government contracts for private companies can be worth very large sums, and at that scale, abuse is easy. Therefore, American lawmakers have created a mechanism that still evokes mixed feelings in Polish culture: a financial reward for whoever exposes the fraud.
A whistleblower is not an informer
The word “whistleblower” is sometimes translated pejoratively, but the legal framework is clear. It is about recovering public money extorted on the basis of false invoices, untrue certifications in contracts, or other documents submitted to government offices. The reporter is usually an employee or former employee of the contractor, meaning someone who knows the mechanism from the inside.
The law firm Robert Wisniewski P.C. lists typical areas for such cases on its website: construction, programs funded by Medicare and Medicaid, social programs, and other government spending. In the reality of New York, these are industries where many Poles work – from public construction sites to home care funded by public funds.
A company bills the city for hours that no one worked. An agency settles visits from a public program that never took place. A contractor certifies in documents that they meet the contract requirements, even though everyone on the construction site knows that is not true. Employees who see such practices up close often do not realize that the law provides a specific course of action for them.
False Claims Act, New York regulations, and the IRS program
Lawsuits are based on the federal False Claims Act and its equivalents enacted by the State of New York and New York City. These regulations allow people outside the administration, usually employees or former employees with inside knowledge, to sue a contractor on behalf of the government. According to the law firm, the first person to report the fraud can receive up to 30% of the recovered amounts – in practice, this involves filing a lawsuit on behalf of the government (the so-called qui tam action).
A separate path is the IRS program. An employee who has information about an employer’s tax fraud, such as hiding revenue, cash payments to many employees, or forcing refunds from employees, can contact the tax office. In some cases, they can receive up to 30% of the taxes, interest, and penalties recovered by the IRS.
The law also protects the reporting itself. The law firm includes among protected activities, among others, reporting tax or healthcare fraud, other crimes, and refusing to participate in illegal activities. Retaliation for such behavior, such as termination or demotion, is unlawful.
Job loss to H-1B workers
On the same subpage, the law firm describes a second topic. Citing press reports and congressional investigations, it points out that some American companies commission work to foreign outsourcing companies in a way that may violate immigration laws and the civil rights of U.S. citizens and residents.
Among the situations where an employee may have a claim, the law firm lists, among others, job loss to an H-1B visa holder, termination after work was transferred to an outsourcing company, being bypassed in recruitment by a foreign intermediary company’s recruiter, and failure to receive an interview invitation despite being qualified for an IT position. Details can be found on the law firm’s page on whistleblower and H-1B cases.
Free consultation in Polish
Robert Wisniewski has been handling cases in state and federal courts, before arbitration courts and government agencies for over 30 years. The law firm handles both whistleblower cases and cases involving wrongful termination, discrimination, and retaliation.
The initial consultation is free, and the conversation can take place in Polish, directly with the attorney. Robert Wisniewski P.C. law firm, phone: 212-267-2102.
This article is for informational purposes only and does not constitute legal advice; reading it does not create an attorney-client relationship. The material is an advertisement for legal services (attorney advertising). Past case results do not guarantee similar outcomes in the future.
