To Rat or Not to Rat & For How Much?

Letter to Romans: DOJ’s new whistleblower program is designed to blow away the old system for rewarding rats by paying them upfront rather than making them wait for the cheese until a conviction. The kinds of fraud targeted are expanded too …

It's obvious fraud is rampant & the perps have too often had unfettered sway in court. But now, they’re arguably going to have to draw on every crooked fiber in their criminal bodies after DOJ announced the Fraud Whistleblower Incentive Program aka WHIP. It’s not just another version of existing government reward programs. Not only can an informant now get up to $30K as soon as charges are filed, but eligibility for future rewards under other programs are baked in as well. The catch? Reward eligibility as well as amounts will continue to depend on the DOJ’s discretionary screening & evaluation of the tips’ quality.

Note, WHIP doesn’t (& couldn't) expand the legal definition of fraud so it doesn’t pretend to criminalize formerly legal conduct illegal. Yet, it does bluntly target (& encourage informants) in certain specified areas believed to be ripe with fraud but that have been hard to prosecute under the long-standing & overriding False Claims Act aka qui tam claims. Those “better defined” suspect areas include federal health care benefit programs like Medicaid & Medicare or hospice/home health care/day care services, SNAP food assistance programs, unemployment benefits, federal housing assistance, student aid & SBA loans. WHIP tips don’t need to produce large fines or forfeiture; the tip doesn’t even have to involve conduct that would be needed to support a False Claim Act prosecution. Moreover, it can even encompass fraud schemes involving state or local programs IF federal funds take a hit. WHIP, in short, can be thought of as Uncle Sam’s latest & greatest Starbucks-like multi-flavored, protein-packed drink for fraudsters & their mouthpieces to swallow.

Davd Soul