Tag Archive for: qui tam

Whistleblower Rewards Can Help Stop Employee Retention Credit (ERC) Violations

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The Employee Retention Credit (ERC) was introduced as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help businesses retain employees during the economic downturn caused by the COVID-19 pandemic. While the ERC has been a lifeline for many businesses, it has also unfortunately opened doors for fraudulent claims and misuse.

Kitzer Rochel specializes in whistleblower reward cases and are dedicated to helping those who come forward with valuable information about ERC violations. If you have knowledge of a business or organization that is fraudulently claiming the ERC, you may be eligible to file a claim and receive a significant reward for your efforts.

What is the Employee Retention Credit?

The ERC is a refundable tax credit for businesses that continued to pay employees despite experiencing a decline in revenue due to the COVID-19 pandemic. This credit is designed to encourage businesses to keep their workforce intact during challenging economic times. However, the complexity of the ERC’s eligibility criteria and the significant financial benefits it offers have unfortunately led to instances of fraud and abuse.

Common Violations of the Employee Retention Credit

Some common violations of the ERC include:

  • Falsifying Eligibility: Businesses misrepresenting their revenue decline or operational status to qualify for the credit.
  • Inflated Payroll Costs: Reporting inflated payroll costs or employees that do not exist to maximize the credit.
  • Double Dipping: Claiming the ERC while also receiving benefits from other COVID-19 relief programs, such as the Paycheck Protection Program (PPP), in ways that are not permitted.
  • Improper Record Keeping: Failing to maintain accurate records or intentionally altering records to support fraudulent claims.

How Whistleblowers Can Help

Whistleblowers play a crucial role in exposing fraud and protecting the integrity of government programs. If you are aware of any fraudulent activities related to the ERC, you have the power to make a difference. By coming forward with your information, you not only help to ensure that government funds are used appropriately, but you may also be eligible for a financial reward.

Potential Rewards for Whistleblowers

The rewards for whistleblowers can be substantial. Under the IRS Whistleblower Program, individuals who provide information that leads to the recovery of unpaid taxes can receive between 15% and 30% of the total amount collected by the government. This means that if your information helps uncover significant ERC fraud, your reward could be substantial.

Why Choose Kitzer Rochel?

At Kitzer Rochel, we are committed to protecting whistleblowers and ensuring they receive the rewards they deserve. We understand the courage it takes to come forward, and we are here to provide you with the support and expertise you need every step of the way.

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Reporting ERC violations is not only a civic duty but also an opportunity to receive significant financial rewards. If you have information about fraudulent ERC claims, don’t hesitate to take action. Contact us today for a confidential consultation and let us help you navigate the whistleblower claim process.

Together, we can make a difference and ensure that the Employee Retention Credit program is used as intended – to support businesses and employees in times of need.

Kitzer Rochel Is a Voice for Whistleblowers Reporting Paycheck Protection Program (PPP) and Other COVID-19 Funding Fraud

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Our firm knows that some recipients of PPP funding, or other CARES Act funding, have not complied with the law. These companies are abusing taxpayer dollars and harming small businesses that really need the limited funding. And they are breaking the law. 

Federal laws prohibit retaliation against workers, employees, executives or anyone else who blows the whistle on employers who defraud the Paycheck Protection Program (PPP) run by the Small Business Administration (SBA). And some statutes offer monetary rewards for turning in wrongdoers.

For example, under the False Claims Act (FCA), the government may reward a PPP whistleblower with up to 30 percent of the recovered funds.

  • Are you concerned about possible fraud regarding the SBA’s Paycheck Protection Program (PPP)?
  • Are you an executive or employee of a company that misrepresented payroll numbers in order to get a PPP loan?
  • Do you have information that your employer has misused an SBA loan or PPP funds? This could include spending more than 40 percent of a PPP loan on non-payroll expenses, or other examples.
  • Do you have information or concerns about other, similar practices?
  • Have you been warned to stay quiet about such fraudulent practices?

If you’ve witnessed PPP fraud and want to speak up, there are laws that may protect and even reward you. Contact Kitzer Rochel today to learn more.

Whistleblowers Reveal Widespread Fraud at Large Twin Cities Mental Health Agency

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Several whistleblowers have brought to light allegations of widespread fraud by Complementary Support Services (CSS). According to allegations from federal and state prosecutors, the mental healthcare provider defrauded Minnesota’s Medicaid program for millions of dollars and provided inadequate supervision of unlicensed practitioners. The state and federal prosecutors filed suit against CSS in November of 2015.

Several employees have come forward to blow the whistle and publicly report the fraud as well as retaliation and alleged blackmail of CSS employees. According to Naomi Davis, CSS threatened to withhold her paycheck if she did not agree to file false reports. Such claims could give rise to employment retaliation and whistleblower claims.

In addition, a qui tam, or False Claims Act (FCA) lawsuit was filed in 2013 against CSS, and both the United States and Minnesota governments have joined the suit. The lawsuit was initially filed under seal, as required by state and federal law, and was recently made public by the Court. The whistleblower lawsuit was filed by William Schwandt as a relator on behalf of both the United States and Minnesota.

These whistleblowers highlight the need for individuals to report government fraud, waste and abuse, and the important role that whistleblower reward laws–or qui tam laws, as they are sometimes called–play in stopping and correcting fraud in our community. There are robust laws that reward individuals who report fraud and even allow such individuals to file lawsuits on behalf of the government in order to recover the improperly-obtained money. In addition, there are many laws that protect employees who act as whistleblowers, preventing them from being retaliated against or fired for reporting or refusing to engage in fraud or other illegal conduct. In addition, some laws allow individuals to file confidential complaints in order to protect them from their employer or others of learning their identity.

Teske Katz Kitzer & Rochel has a proven track record of representing whistleblowers. If you have questions or feel that you may be aware of government fraud, contact us today for a free consultation.