Who Qualifies as a Whistleblower Under the False Claims Act

Any private person with reliable inside knowledge of fraudulent activities involving federal or state funds can qualify as a whistleblower. The test is whether you have original, first-hand knowledge of potential fraud – generally obtained as an employee or contractor – rather than second-hand knowledge gathered from hearsay or online sources.

In most fraud cases, whistleblowers are employees, contractors, or other ‘insiders’ of the offending company or individual. An employment relationship is not required, however, to file a successful private whistleblower action in New York. Our experienced whistleblower claims lawyer, Peter Katz, can confidentially discuss whether you qualify to report fraud under the FCA.

Overview of Whistleblower Laws in New York

Most whistleblower claims are filed under the federal False Claims Act (FCA), 31 U.S.C. §§ 3729–3733, or state equivalent. The NYFCA is outlined in State Finance Law, Art. 13, §§187–194. Any person can bring a private civil action – called a ‘qui tam’ lawsuit – on the government’s behalf, provided he or she has ‘direct and independent knowledge’ of the qualifying fraud. This means knowledge gained before the allegations went public.

Filing Private Litigation under the False Claims Act

Although ‘any person’ – not just U.S. citizens – can file private lawsuits under the FCA, they must generally be the first ‘official’ whistleblower. This means the person must present the court with relevant and original information about potential fraud, which is generally only obtainable by parties with inside knowledge. In most cases, this means:

• Employees
• Independent contractors
• Former employees/contractors
• Customers
• Subcontractors
• Close relations of offenders

Your litigation attorney must include any relevant information in a ‘sealed’ complaint along with supporting evidence, if available. Though you cannot generally file ‘qui tam’ lawsuits based on suspected fraud without some documentation, an experienced whistleblower lawyer can help you identify and gather the first-hand evidence necessary to support a private lawsuit.

Whistleblower Rights in New York

Suppose you’re the original whistleblower (or another whistleblower with material and otherwise unknown information about the claim). In that case, you have the right to claim a portion of any financial settlement or judgment the government obtains. Your attorney begins by filing a sealed complaint that is then sent to the relevant government office. The government has the right to take over the claim or allow your private attorney to pursue the case on its behalf.

If the government takes over the case and recovers compensation, whistleblowers are entitled to between 15% and 25% of the recovery, plus attorneys’ fees and costs. Whistleblowers can take home between 25% and 30% of any eventual settlement or judgment if the government declines to take over the case. In 2024, the federal government awarded whistleblowers over $400 million. Additionally, employees and contractors are entitled to specific workplace and anti-retaliation protections after filing or participating in whistleblower lawsuits in New York.

New York Whistleblower Claims Lawyer

Anyone can report suspected government fraud to experienced NY whistleblower lawyer Peter Katz. He can help you determine whether you qualify to file a qui tam action and gather the evidence necessary to support your claims. Confidentially discuss potential government contract fraud with us today. Call (609) 849-3179 or connect online.