What is the False Claims Act?

The False Claims Act is a federal law that encourages people to report cases of fraud or abuse for government programs in New Mexico. It is specifically designed to protect whistleblowers — individuals who expose instances of deception by government contractors, organizations, or other individuals that could result in financial loss to the government. The law prohibits any person from knowingly presenting, or causing to be presented, a false or fraudulent claim for payment or approval to the United States government from a contractor, grantee, or other recipient of federal funds. In addition, it prohibits individuals from knowingly making, using, or causing to be made, a false record or statement to get a false or fraudulent claim paid or approved by the government. The False Claims Act also has an important provision that rewards whistleblowers for coming forward with their information. If the whistleblower contributes information to a successful prosecution, they may be entitled to a percentage of the proceeds, usually between 15 and 30 percent. Furthermore, the False Claims Act provides protection from any form of discrimination or retaliation for individuals who come forward with fraud allegations or cooperate with the investigation. This protection includes continued employment and no threat of being discharged, demoted, suspended, threatened, harassed, or in any other manner discriminated against.

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What is the False Claims Act?

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