Fraud Schemes: The Basic 4

While fraud can be complicated, everyone has a basic understanding of what fraud looks like. Did taxpayers get what they paid for, or not?

Under the federal False Claims Act, whistleblowers report defense and other contractors, health providers, nursing homes, school districts - anyone who submits fraudulent claims or causes someone else to submit false bills for federal dollars.

Several states have similar legislation designed to assist in recovering fraudulently obtained dollars for state treasuries.

Examples of the four basic categories of fraud claims include:

False Certifications - The agency, school, contractor, etc. falsely assures that it meets regulatory or statutory conditions to qualify for government money.

Fraud in the inducement or False Negotiation - Kickbacks or bid rigging fall into the category of inducements. The inducements can range from lunch and golf to several thousands of dollars for consulting fees.

Substandard Product or Service - The service or product provided for government funding is an inferior substitute to the one for which the government contracted.

Mischarges - A claim for service or product is not provided, or someone is overcharging the government for a service or product.

Also deserving of mention are schemes that fall under the description of reverse false claims.

KEMY represents whistleblowers who report fraud against the federal government. If KEMY decides to take the case, the firm represents the whistleblower on a contingency basis. If the whistleblower's complaint results in a recovery for the government, the whistleblower can qualify for 25% to 30%. If KEMY takes the case and no recovery occurs, the whistleblower pays nothing for attorney fees.