Can statistical sampling be used to prove liability under the False Claims Act?
Whether a whistleblower or the government can rely on statistical sampling to prove liability and damages under the False Claims Act is the most important and hotly litigated issue. That’s why Joel D. Hesch authored a law review article addressing the use of statistical sampling under the FCA, which was just published by the American Journal of Trial Advocacy.
Why statistical sampling is needed to proven fraud against the government
In large Medicare fraud cases, it can be nearly impossible to present every single false claim submitted by healthcare companies that have cheated or defrauded the government. The government has been relying upon statistical sampling to determine the amount of damages companies owe back for their fraud. However, defendants have recently asked courts to disallow statistical sampling, arguing that the FCA requires individual proof of each and every false claim—even if there were tens-of-thousands of false claims in large fraud schemes. In large fraud cases, it could take years to evaluate every false claim and make it difficult if not impossible to bring the companies to justice without using statistical sampling. Thus, statistical sampling has become the biggest issue facing the courts and the government.
Read the Hesch law review article on statistical sampling
The law review article by Joel D. Hesch, a whistleblower advocate and attorney who represents whistleblowers file for rewards for reporting fraud against the government, has argued in this article that the courts (and both the government and whistleblowers) can rely on statistical sampling. Under the False Claims Act, a defendant is liable for triple damages for submitting false claims for payment under any government program, such as Medicare and the military. The FCA also allows whistleblowers to receive up to 30% of the funds the wrongdoer repays. When a big company cheats it can often amount to over $100 million in fraud, which the whistleblower may receive up to 30% or $30 million for reporting it. The largest whistleblower rewards have topped $100 million in a single Medicare fraud case. The question facing the courts is whether to continue to allow the government or whistleblower to prove the fraud using statistical sampling.
The good news is that Hesch has authored a well-reasoned legal article to guide the courts in making a decision on this important topic and to allow the government and whistleblowers to keep using statistical sampling. See the link below to download the statistical sampling legal article.
Contact Joel D. Hesch to find out if you may be eligible for a whistleblower reward
If you are a whistleblower and know of fraud against the government, Mr. Hesch would be pleased to review your information in complete confidence and help you determine if you have the right kind of information to receive a significant whistleblower reward. Click on this link “Do I have a case” to have Mr. Hesch review your potential whistleblower reward case for Medicare fraud.
Click on this link to see examples of whistleblower fraud cases Mr. Hesch worked on while working for the Department of Justice for 15 years and now in private practice exclusively representing whistleblowers (totaling over $1.7 billion).
Click on this link to read the statistical sampling law review article authored by Joel D. Hesch, entitled: CAN STATISTICAL SAMPLING BE USED TO PROVE LIABILITY UNDER THE FCA OR DOES EACH PROVISION OF THE STATUTE REQUIRE INDIVIDUAL PROOFS?, 41 AMERICAN JOURNAL OF TRIAL ADVOCACY 335 (2018)