Report Fraud against the Government (earn a reward)
There are three sweeping new government reward programs that invite citizens to report fraud against the government. The main federal program is administered by the Department of Justice (DOJ) in Washington, D.C. It has been so successful that it spawned similar reward statutes by many states and was recently adopted by the IRS in combating income tax evasion and tax fraud.
(If you want Mr. Hesch to confidentially review your potential case, go to the link "Do I Have a Case" to read his case criteria and the procedures for contacting him.)
Snapshot of the Federal DOJ Reward Program
The DOJ whistleblower reward program is working remarkable well, having recovered over $20 billion and paying out nearly $3 billion in rewards to citizens. However, most Americans are still unaware of this gutsy program where a private person who steps forward with information is rewarded with up to 30% of what DOJ recovers back from the cheating company. The largest rewards for reporting fraud exceed $100 million, and the average reward is $1.5 million. That's right, the government is using the carrot of huge rewards to enlist private citizens to step forward and report companies cheating under federal contracts or programs, such as the military and Medicare.
The government is spending over a trillion dollars each year. DOJ is asking for your help in recovering back the tens-of-billions of dollars lost each year due to fraudulent claims. Congress has authorized DOJ to pay up to 30% of the amount of fraudulent payments recovered back. Please note, however, the DOJ reward program is complex and there are many pitfalls to avoid. In fact, DOJ rejects 75% of applications. By contrast, in 95% of cases in which DOJ accepts, a reward has been paid. One in twenty-five had received a reward of at least one million dollars. Therefore, the key is for you to understand how the program works and hire an experienced False Claims Act attorney to represent you. In fact, the program requires you to use an attorney and file formal legal documents as part of reporting fraud and applying for a reward.
Click here for more details regarding the DOJ Reward Program.
Click here for examples of Federal Fraud cases where rewards are available.
Snapshot of the State Reward Programs
Many states have passed whistleblower reward statutes modeled after the Department of Justice reward statute. The growing list includes: California, Delaware, District of Columbia, Florida, Georgia, Hawaii, Illinois, Indiana, Louisiana, Massachusetts, Michigan, Montana, New Hampshire, New Jersey, New Mexico, New York, Nevada, Oklahoma, Rhode Island, Tennessee, Texas, and Virginia. More states are expected to join this constantly growing list, and information regarding state reward programs will be updated on this website.
The state reward programs work largely the same as the federal DOJ reward program, with one logical difference. These programs apply when there is fraud against the state, as opposed to the federal government. The same technical requirements for the federal program are applicable. In fact, courts often look to the federal reward program for guidance in deciding how to interpret the state laws. That is why it is so important to understand the federal program. These state programs also require you to hire counsel and submit formal legal documents.
Click here for examples of State Fraud cases where rewards are available.
Snapshot of the IRS Income Tax Reward Program
President Bush gave Americans an early Christmas present by signing into law on December 20, 2006 a new IRS income tax reward program. It is modeled after the DOJ reward program, but applies specifically to tax cheaters. This program allows you to receive a reward of up to 30% of the amount the IRS recovers back from unpaid taxes as a result of your submission. Although much of the program is the same as the DOJ program, there are some significant differences. The most notable is who the program affects.
If you report that a company is evading taxes, you must show that they under reported taxes by $2 million. Be mindful that to show underpayment of taxes by this amount, you may need to establish that the company claimed improper deductions or hid income by $7 million (assuming a 28% tax bracket).
With respect to individuals, not only must the underpayment of taxes amount to $2 million, but the person cheating must have had a gross income of at least $200,000 during one of the tax years at issue. In other words, the reward program does not want to see it used as a weapon in family or neighborhood squabbles or for smaller tax fraud cases.
Click here for more details regarding the IRS Reward Program.
Click here for examples of income tax fraud where rewards are available.