False Claims Act for International Whistleblowers: An FAQ

Quick Overview

Under the FCA’s qui tam provision, whistleblowers (also known as “relators”) who successfully bring a case may receive a mandatory award between 15% and 30% of the total amount recovered by the government in that they intervene.

Fraudsters found liable under FCA face treble damages, which is 3 times the government’s loss, plus civil penalties of $14,308 to $28,619 per false claim. The relator’s award comes directly from the recovery itself, not from taxpayers.

Another key feature of the FCA is that it prohibits retaliation against any employee, contractor, or agent who provides information to the government. Whistleblowers who experience retaliation may be eligible for re-instatement, double back pay, compensation for litigation costs and attorneys’ fees, and all relief necessary to make that employee whole.

It’s important to note that non-U.S. whistleblowers must hire a U.S.-based attorney to file a qui tam lawsuit.

Other key features of the False Claims Act include:

• Broad International Reach: Any person or entity with evidence of fraud against the U.S. government can file a qui tam lawsuit, regardless of their nationality or location. This is relevant for international whistleblowers reporting customs fraud, defense contractor fraud or any other fraud involving U.S. federal programs or contracts.
• Qui Tam Right to Sue: The FCA allows you to file a lawsuit directly in federal court on behalf of the United States. If the government declines to intervene, you may proceed with the case on your own; however, success rates drop significantly in such cases.
• Filed Under Seal: All qui tam lawsuits are filed under seal, which means it remains confidential while the government investigates the allegations. The defendant is served the complaint only when the seal is lifted.
• Substantial Recoveries: with treble damages being three times the governments loss, relators have the potential to receive a substantial monetary share of the recovery, plus per-claim civil penalties, and penalties from related claims.
• Strong Anti-Retaliation Protections: Whistleblowers are protected from discharge, demotion, suspension, threats, harassment, or any other form of discrimination for taking lawful action to stop FCA violations.

What is the False Claims Act?

The False Claims Act (31 U.S.C. §§ 3729–3733) is the oldest and most effective anti-fraud law in the United States. First enacted in 1863 by President Abraham Lincoln during the Civil War to combat fraud by military contractors selling defective goods to the Union Army, the FCA has been strengthened through major amendments in 1986, 2009, and 2010.

The FCA makes it illegal to knowingly submit, or cause the submission of, a false or fraudulent claim for payment to the U.S. government. It also covers “reverse false claims” — situations where a person knowingly conceals or avoids an obligation to pay money owed to the government, such as evading customs duties.

Since its modernization in 1986, the FCA has recovered more than $85 billion for U.S. taxpayers. In fiscal year 2025 alone, the Department of Justice secured over $6.8 billion in FCA settlements and judgments — the highest single-year total in the statute’s history. Whistleblower-initiated qui tam actions accounted for more than $5.3 billion of that total.

What is Qui Tam?

Qui tam refers to a provision of the False Claims Act that allows private citizens (called “relators”) to file lawsuits on behalf of the U.S. government against individuals or entities that have defrauded the government. The term is Latin and means “who as well for the king as for himself sues in this matter.”

What’s unique about the qui tam provision from other U.S. anti-fraud corruption laws is that it allows private citizens to file the lawsuit in U.S. federal court directly. Once it has been filed, the government will decide whether to intervene (join the lawsuit) or decline.

If the government intervenes, the relator typically receives 15% to 25% of the recovery. If the government declines to intervene and the relator proceeds independently, the relator may receive 25% to 30% of the recovery, but no more than 30%.

Quick Facts: False Claims Act

What Type of Fraud Does the False Claims Act Cover?

The FCA covers any fraud that results in the U.S. government paying money it should not have paid, or failing to collect money it was owed, such as with government contracts. The law is expansive and has been applied across virtually every sector of government spending.

Common types of FCA violations include:

Healthcare Fraud

• Billing Medicare or Medicaid for services not rendered or medically unnecessary services
• Upcoding (billing for more expensive services than were provided)
• Kickbacks to physicians or healthcare providers in exchange for referrals
• Off-label marketing of prescription drugs for uses not approved by the FDA
• Falsifying clinical trial data or safety information
• Medicare Advantage fraud, including improper risk adjustment coding

Defense and Government Contracting Fraud

• Charging the government for goods or services not provided
• Delivering defective or substandard products that do not meet contract specifications
• False cost or pricing data submitted to secure government contracts
• Failure to meet cybersecurity requirements while certifying compliance
• Buy American Act violations, including misrepresenting the country of origin of products

Customs and Tariff Fraud

• Misclassifying imported goods to reduce customs duties
• Undervaluing goods on customs declarations
• Falsifying country of origin to evade antidumping or countervailing duties
• Transshipment schemes to disguise the true origin of goods
• Double-invoicing schemes to mislead Customs and Border Protection (CBP)

Other Types of Fraud

• Pandemic relief fraud (PPP loans, COVID-19 healthcare claims)
• Grant fraud and research misconduct involving federal funding
• Housing and mortgage fraud involving FHA-insured loans
• Small Business Administration (SBA) fraud
• Environmental violations involving government contracts

If you have strong information of fraud against the U.S. government, it is advised to speak with one of our experienced FCA whistleblower attorney for a free case evaluation. It’s important to note that non-U.S. whistleblowers must hire a U.S.-based attorney to file a qui tam lawsuit.

Customs and Tariff Fraud: A Key Area for International Whistleblowers

Customs and tariff fraud is the fastest-growing areas of FCA enforcement, and it is an area where international whistleblowers can make a difference.

In August 2025, the DOJ announced the formation of a cross-agency Trade Fraud Task Force in partnership with the Department of Homeland Security (DHS), identifying the FCA as one of its primary enforcement tools to combat customs and tariff fraud.

What are customs and tariff fraud?

Customs and tariff fraud occurs when importers knowingly misclassify goods, undervalue shipments, falsify country-of-origin documentation, or use transshipment schemes to evade duties. In such cases, they are committing “reverse false claims” under the FCA.

Example Cases

Toyo Ink SC Holdings — $45 Million (2012)
Japanese printing ink manufacturer Toyo Ink evaded antidumping and countervailing duties on a violet pigment (CVP-23) by falsely declaring its country of origin as Japan and Mexico on U.S. customs documents — when the product was actually manufactured in China and India.

The pigment underwent a superficial “finishing process” in Japan and Mexico, but the government determined this was insufficient to change its origin. The scheme ran from 2002 to 2010. A competing U.S. pigment manufacturer filed the qui tam lawsuit and received approximately $7.8 million as his whistleblower award.

Anti-Retaliation Protections

The FCA’s anti-retaliation provision (31 U.S.C. § 3730(h)) protects any employee, contractor, or agent who is discharged, demoted, suspended, threatened, harassed, or otherwise discriminated against for taking lawful action to stop FCA violations.

Protected actions include:

• Filing or assisting in a qui tam lawsuit
• Investigating or reporting fraud internally
• Testifying or assisting in a government investigation
• Taking other lawful steps to stop false claims

Remedies for retaliation include reinstatement, double back pay with interest, compensation for special damages, and reasonable attorneys’ fees and litigation costs.

How to Report Fraud Under the False Claims Act

Note: Foreign whistleblower do not need to be in the U.S. to file a qui tam lawsuit, but they do need a U.S.-licensed attorney.

False Claims Act Statistics

Don’t Forget State False Claims Act Laws

In addition to the federal FCA, more than 30 U.S. states have enacted their own false claims act laws, including New York, California, and Virginia.

Many of these state laws include qui tam provisions that permit whistleblowers to recover a portion of state-level fraud recoveries. State FCA cases can be filed alongside federal qui tam suits when the fraud affects both federal and state programs, such as Medicaid fraud.

An experienced FCA attorney from IWA can advise you on whether your case has both federal and state components and help you maximize your potential recovery.

Getting Expert Legal Assistance

Filing a qui tam lawsuit is complex and requires experienced legal representation. The FCA has strict procedural requirements.

International Whistleblower Advocates has over 35 years of experience, winning landmark cases under numerous whistleblower laws with transnational reach. Our team includes former SEC Commissioner Allison Herren Lee, former SEC Enforcement Counsel Andrew Feller, and Stephen M. Kohn, lead attorney on landmark whistleblower cases.

We represented Bradley Birkenfeld, whose disclosure of UBS’s Swiss tax evasion scheme led to a $780 million fine and a $104 million whistleblower award. We also represent Howard Wilkinson, who exposed Danske Bank’s $234 billion Russian money laundering operation involving Bank of America, J.P. Morgan, and Deutsche Bank.

If you have information about fraud against the U.S. government, request a confidential case evaluation today — there is no fee unless we win your case and secure a recovery.