What is qui tam?
A whistleblower's guide to the lawsuit that pays you to expose fraud.
Qui tam is the legal mechanism that lets a private citizen sue a fraudster on the government's behalf — and share in any recovery. It's the engine behind nearly every major federal fraud case you've read about, from healthcare to defense to COVID relief.
The False Claims Act, in one paragraph
The federal False Claims Act (FCA), enacted in 1863 during the Civil War to combat war-profiteering, makes it unlawful to knowingly submit false claims to the federal government. “Knowingly” covers actual knowledge, deliberate ignorance, and reckless disregard. The FCA imposes treble damages plus per-claim civil penalties, and authorizes private citizens — called relators — to sue on the government's behalf.
Who can be a qui tam relator?
Almost anyone with insider knowledge:
- Current and former employees
- Contractors and subcontractors
- Officers and executives
- Competitors and industry insiders
- Patients, in healthcare cases
- Outsiders with reliable evidence of the scheme
How a qui tam case actually moves
- 01
Filing under seal
The case is filed in federal district court under seal — visible only to the government and the court. The seal starts at 60 days and is typically extended.
- 02
Government investigation
DOJ (often with the relevant agency Inspector General) investigates while the case stays sealed. This can take months to several years.
- 03
Intervention decision
DOJ either intervenes (joins the case as plaintiff) or declines. If it intervenes, the case becomes the United States v. Defendant. If it declines, the relator can choose to proceed alone.
- 04
Resolution
Most cases settle. If the government recovers, the relator's statutory share is paid: 15–25% for intervened cases, 25–30% for declined cases.
Your submission stays confidential.
What gets prosecuted as qui tam
- Healthcare fraud — Medicare and Medicaid overbilling, kickbacks, medically unnecessary services
- Defense and procurement fraud
- Government grant and research fraud
- COVID relief fraud (PPP, EIDL, Provider Relief Fund)
- Customs and trade — duty evasion
- Mortgage and housing program fraud
By the numbers
- Total recoveries under the FCA since 1986 — well over $70 billion
- Of that, more than $53 billion came from qui tam (whistleblower-initiated) cases
- Single-relator awards have exceeded $100 million on multiple occasions
Frequently asked questions
No. Healthcare is the biggest single category, but qui tam covers any false claim against the federal government — defense, grants, customs, procurement, COVID relief, and more.
Yes. Courts won't accept a pro se qui tam filing. The case must be filed by counsel.
Often, yes. Most states with false claims acts allow parallel filings for state Medicaid losses, which can substantially increase the total recovery.