South Carolina Whistleblowers and False Claims
When a company or individual files a false claim, they are stealing from the government and taxpayers. So, what is a false claim? A false claim is a dollar tied to a lie—which is fraud. But fraud is not always easy to spot if you do not know what to look for.
If you have seen your employer or colleague do any of the following, you have witnessed fraud:
- billing for services that were never completed, or
- inflating charges, through upcoding, unbundling, or misrepresenting underlying costs, or
- submitting fake records or test results, or
- accepting kickbacks, or
- selling defective or unapproved products to the federal government.
If you live in South Carolina and you have direct knowledge of false claims being made to the federal government, you can become a whistleblower, or, in the language of the False Claims Act, a “relator.” The False Claims Act (FCA) is a federal law that prohibits anyone—including South Carolina companies—from submitting fraudulent claims to the government and provides legal protection for whistleblowers who report fraud. FCA whistleblowers are also eligible for rewards if their report leads to the federal government recovering money lost to fraud.
The FCA applies to fraud involving federal dollars—including money paid under contracts, grants, or federal programs. The FCA applies even if the funds are distributed by the state, so long as the federal government is the original source of the money. For instance, federal COVID support dollars were distributed to the states, including South Carolina, and the states decided how to allocate the funds. But because South Carolina was distributing federal dollars, the FCA applies when someone receives those dollars as a result of fraud. Another example would be South Carolina Medicaid, which is funded in part with federal money. Although South Carolina designs its own Medicaid program (within the bounds of federal requirements), fraudulent claims on those funds violate the federal FCA.
Unlike 29 states and the District of Columbia, South Carolina has not enacted a state FCA. That affects how false claims involving state and local governments are handled, and whether a potential whistleblower has a case at all. South Carolina whistleblowers will have to follow government dollars back to their origin to determine which legal protections you are entitled to and whether you may be eligible for an award.
If you suspect a South Carolina employer or other entity is engaged in wrongdoing that involves federal funds, you don’t have to stay silent. The law protects you, and it may provide an award if you’re successful. But you should not go it alone. If you’re considering becoming a whistleblower in South Carolina, Miller Law Group has the depth of experience and commitment you need.
