The federal government’s loan programs are not just financial transactions but opportunities that can change lives. Whether it is buying a home, starting a business, or pursuing an education, these programs offer a path to a better future. However, they are also vulnerable to fraud, which is why your vigilance is crucial.
To combat illegal transactions, the United States enacted the False Claims Act. Under this federal law, whistleblowers with information about fraudulent government loans can seek a monetary reward with the help of a seasoned whistleblower attorney. If you believe you are entitled to relief under the act, a Lexington government loan fraud whistleblower lawyer could help.
Any time a person or entity applies for a loan from the federal government, they are required to complete an application and provide supporting documents. These efforts are necessary to prove that the applicant qualifies for the loan. When fraud is involved in these transactions, it is often related to false statements made to attempt to secure government funding.
Only certain individuals—generally citizens or legal residents—will qualify for these loans. Any attempt to circumvent this requirement by non-resident aliens violates the False Claims Act.
In some cases, individuals or entities may engage in fraud when they do not meet the qualifications for a loan. This could involve inflating their income or falsely claiming to be a member of a protected group. It is important to remember that any attempt to secure a loan with falsified documents or information is a violation of federal law.
When a person has knowledge of government loan fraud in Lexington, a whistleblower attorney could help them pursue a monetary award in exchange for information that leads to a conviction.
Under the False Claims Act, seeking financial compensation through a writ of Qui Tam is possible. This type of federal lawsuit allows a whistleblower to recover a portion of fraudulently obtained funds if they provide helpful information that leads to a conviction.
Most people can take advantage of this program, including employees, acquaintances, and family members of the party using fraud to secure a government loan. For this writ to be successful, the details provided must lead to a prosecution and conviction. Moreover, it must be new information that has not previously been supplied to the authorities.
Some people are not eligible for a monetary award under the False Claims Act. Law enforcement officers have a duty to report criminal activity, which prevents them from pursuing a writ of Qui Tam. Likewise, the target of an investigation may not turn over evidence to try to retain some of the ill-gotten funds.
When these writs are successful, a whistleblower can recover between 15 and 25 percent of any money returned from the fraudulent scheme. Because these payments only occur after a successful prosecution, it can take years for this process to play out. A Lexington lawyer familiar with cases of government loan fraud whistleblowers could provide guidance along the way.
If you have information about a fraudulently obtained government loan, you might be entitled to a monetary award. Securing compensation under the False Claims Act may not be easy, but you can seek support from a legal professional to guide you. Call a Lexington government loan fraud whistleblower lawyer today to learn more.
