Thinking of blowing the whistle on fraud against the government?
Here are 6 things whistleblowers should avoid doing – and 1 important thing to do!
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North & South Carolina Whistleblower Attorneys: Dos and Don’ts for Reporting Government Fraud
You’ve seen something that doesn’t sit right. It could be a pattern of billing irregularities, a defense contractor cutting corners, or a healthcare provider systemically overcharging Medicare. Whatever the specifics, you suspect your employer or another company is defrauding the U.S. government, and by extension, every American taxpayer.
This realization brings a heavy weight. You feel a patriotic duty to speak up, but you may also feel fear for your career, your reputation, and your family’s financial security. This is a normal and valid response to an extraordinary situation.
Choosing to become a whistleblower is one of the most significant professional and personal decisions you may ever make. In addition to courage, it also demands strategy. There is a right way — and generally a profoundly wrong way — to proceed. The wrong steps can not only jeopardize your ability to stop the fraud but your eligibility for a potential reward.
Before taking any action, consider these whistleblower dos and don’ts to help you avoid common mistakes that can undermine a valid case – and a critical step you can take to help protect yourself and your claim.
But first, it’s essential to understand the powerful legal tool at your disposal.
Key Takeaways
- The federal False Claims Act (FCA) allows private citizens to file qui tam lawsuits over fraud against the government.
- A successful relator (whistleblower) may be entitled to a percentage of the government’s potential financial recovery.
- The “first-to-file” rule and “public disclosure bar” are critical procedural elements for potential whistleblowers (but an attorney experienced in whistleblowing law knows how to guide you).
- Communications about a potential claim should not be done on company devices or networks.
- How evidence is collected is a critical factor and should be done with the guidance of an experienced whistleblower attorney.
The legal foundation: Understanding the False Claims Act
Your power as a potential whistleblower comes from one of the most effective anti-fraud laws in American history: the federal False Claims Act (FCA).
What is the False Claims Act?
Originally signed into law by President Abraham Lincoln in 1863, the FCA is often called the “Lincoln Law.” It was created to combat fraud by contractors who were selling the Union Army faulty cannons, spoiled rations, and sick mules during the Civil War. Today, the FCA remains the government’s primary weapon for fighting fraud against its many programs and agencies.
The law imposes significant liability on any person or company who knowingly submits a false or fraudulent claim for payment to the government. This includes a vast range of fraudulent activities, from a hospital billing Medicare for services never rendered to a defense contractor overcharging the Pentagon for parts.
What is a qui tam lawsuit?
The most powerful feature of the False Claims Act is its qui tam provision. The term qui tam is short for a Latin phrase meaning “he who sues on behalf of the king as well as for himself.”
This provision allows a private citizen with knowledge of fraud against the government to file a lawsuit on the government’s behalf. This private citizen is known as the “relator.” In essence, the government recognizes that it cannot uncover every instance of fraud on its own. It relies on courageous individuals — employees, former employees, competitors, and industry insiders — to act as its eyes and ears.
When a relator files a qui tam case, the complaint is filed under seal, meaning it is kept secret from the public and, most importantly, the defendant. The government then investigates the allegations, typically with the relator’s assistance. If the government decides to intervene and join the case, it takes over the primary prosecution. If the case is successful and the government recovers money, the relator is generally entitled to a reward, typically between 15% and 25% in an intervened case.
Understanding this framework is critical because every “do” and “don’t” that follows can significantly help preserve your rights and options under the specific rules of the False Claims Act.
The critical “don’ts”: Six mistakes that can jeopardize your whistleblower claim
To protect yourself and the integrity of your potential case, it is imperative to avoid these common pitfalls.
Don’t #1: Use company computers, email, or networks
When you realize you have evidence of fraud, your first instinct may be to organize your thoughts and evidence using the tools at hand — your work computer and email. This can be a critical error.
Why it’s a mistake: Don’t expect privacy on company-owned devices or networks.
Sending an email to an attorney from your work account or even searching for “North Carolina whistleblower lawyer” on your work laptop creates a digital trail that your employer can find. This may not only alert them to your intentions but can also waive the attorney-client privilege that is meant to protect your confidential communications.
The strategic approach: All communication with an attorney and all personal notes about the fraud should be conducted on a personal device, using a personal email account, and on a private network (like your home Wi-Fi). Never use company resources to communicate about your case.
Don’t #2: Call or text from your work phone
Just like computers, your work-issued cell phone is company property. All call logs, text messages, and data usage can be monitored.
Why it’s a mistake: If your employer becomes aware of an investigation, they will likely search for the source. Records from your work phone showing calls to a law firm or texts to a spouse about your suspicions provide a clear roadmap pointing directly to you. This can make it easier for them to build a case to pre-emptively dismiss you under a different pretext.
The strategic approach: Use only your personal cell phone for any communication related to your whistleblower concerns. This simple act of separation is a fundamental layer of self-preservation.
Don’t #3: Discuss your suspicions with coworkers
You may have a close friend at work, someone you trust implicitly. It’s natural to want to confide in them for emotional support or to ask if they’ve seen the same fraudulent activity. Unfortunately, this is a high-risk gamble.
Why it’s a mistake: The False Claims Act includes a “first-to-file” rule. Generally, only the first relator to file a case based on a specific set of fraudulent facts is eligible to proceed with the lawsuit and receive a potential award.
Even if your coworker has the best intentions, they could, upon hearing your story, decide to contact an attorney and file a claim themselves — making them the official relator and barring you from the case. In a worst-case scenario, the coworker could alert management to protect their own job, leading to retaliation against you and giving the company time to cover its tracks.
The strategic approach: Secrecy is your shield. The only person you should be discussing the fraud with is your whistleblower attorney.
Don’t #4: Quit your job prematurely
When you are surrounded by unethical or illegal behavior, your gut reaction may be to resign. While understandable, quitting your job without a strategic plan can be a disadvantage.
Why it’s a mistake: As a current employee, you have legitimate access to documents, emails, and systems that can be crucial for proving the fraud. This access disappears the moment you walk out the door. Furthermore, if you file a qui tam lawsuit shortly after resigning, the company will almost certainly identify you as the relator, concentrating their focus on you.
The FCA’s anti-retaliation provisions are also designed to protect employees from being fired, demoted, or harassed for their protected activities. It can be easier to prove retaliation occurred if you are still an employee when you take steps to report the fraud.
The strategic approach: Every situation is different. It is a critical strategic choice to discuss the specifics of your situation with a whistleblower attorney who can help you weigh the pros and cons and make the right decision for you.
Don’t #5: Rely on internal company reporting mechanisms
Most large companies have an internal compliance department or a hotline for reporting suspected wrongdoing. These systems are not designed to protect you.
Why it’s a mistake: Internal reporting mechanisms are generally designed to protect the company. When you report fraud internally, you are generally alerting the very people responsible for it. This can give them control of the narrative and the investigation. They may be able to take steps to “remedy” the situation in a way that minimizes their financial liability, potentially destroying or altering incriminating evidence long before the government is aware of the problem.
The strategic approach: Your first call should not be to the company hotline. It should be to an advocate whose duty is to protect your interests. The False Claims Act does not require you to report internally before filing a qui tam claim.
Don’t #6: Collect evidence without talking to an attorney experienced in whistleblower law
While gathering evidence is important, how you obtain it matters enormously.
Why it’s a mistake: Taking documents you lack authorization to possess or accessing systems beyond your normal job responsibilities can create legal complications. Such actions may expose you to civil liability or criminal charges, which your employer could use to discredit both you and your claims.
The strategic approach: The legal landscape around evidence collection is complex and fact-specific. So before gathering any evidence, especially if you have questions about your access rights, consult with an experienced whistleblower attorney who can provide guidance tailored to your unique circumstances.
The ultimate “do” – Contact an experienced whistleblower attorney
After a long list of what not to do, there is one affirmative, powerful action that stands above the others: Do seek a confidential consultation with an attorney with powerful experience in False Claims Act cases.
The procedural rules and deadlines of the FCA are complex and unforgiving. A mistake in the initial filing can be fatal to your case.
An experienced qui tam attorney serves several critical roles:
- A confidential sounding board: We can listen to your story in a 100% confidential setting and help you assess the strength and viability of your potential claim.
- A strategic guide: We can help you navigate the complex “dos and don’ts,” including the crucial decisions about continued employment and evidence gathering.
- A procedural monitor: We can work to see that the qui tam complaint is drafted correctly and filed under seal to protect your identity and the integrity of the case, and act as the bridge between you and the government, managing the process so you can focus on your life.
- Your shield and advocate: If retaliation occurs, we know how to use the FCA’s anti-retaliation provisions to fight for your rights.
Consult Carolina Whistleblower Attorneys Today
If you suspect fraud against the government, you have the power to do something about it. The decision to come forward is a courageous one, and you benefit from having advocates who can guide you in making the choices that are right for you.
At Carolina Whistleblower Attorneys, our team understands this process. We believe in what whistleblowers do. Our mission is to stamp out corporate greed while fighting to protect the patriotic individuals who have the courage to come forward.
We’ve represented dozens of qui tam whistleblowers, with tens of millions of dollars in total settlements. Our lead attorney, Bill Nettles, is responsible for helping the government recover over $307 million in fraudulently-obtained funds during his tenure leading the U.S. Attorney’s Office.1,4
Our fee is only a percentage of any gross recovery we achieve on your behalf, and you will pay nothing at all unless we obtain a financial recovery for you.² Our history of fighting for individuals gives us the strength to stand with you.
We provide a free and 100% confidential case evaluation to help you understand your rights and options under the False Claims Act. We know you’re likely nervous. We can help protect you. Contact Carolina Whistleblower Attorneys today at 1-888-292-8852 or through our online form to begin a secure and private conversation.
“Bill has the ability to ‘think outside the box’…which makes him extremely effective as an advocate for his clients.” 1 — Attorney who previously worked with Bill
Awards we’ve won
For standards of inclusion for awards listed, visit bestlawyers.com, thenationaltriallawyers.org, superlawyers.com, farrin.com/business-nc-power-list, and millondollaradvocates.com. National Trial Lawyers Top 100 designation is for 2025. Regarding the Million Dollar Advocates Forum, we do not represent that similar results will be achieved in your case. Each case is different and must be evaluated separately. Firm award is for the Law Offices of James Scott Farrin. Attorney awards are for attorneys with the Law Offices of James Scott Farrin.
Contact the Carolina
Whistleblower Attorneys
If you’re wondering if it’s a good idea to speak with a whistleblower lawyer about what you know, let us set the record straight.
- Corporate ethics hotlines can be risky and may lead to termination. If you’ve already done this, call us immediately.
- Your coworkers could be aware of the fraud – or complicit in it – and you should not talk to them about it.
- The first claim to be filed under the False Claims Act can proceed – if you’re not first, you’re at a serious disadvantage and may get nothing (another reason not to speak to your coworkers about it).
- A confidential discussion costs you a few minutes, but could save you time, stress, and money.
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