Whistleblower’s Guide to the Chicago False Claims Ordinance: How to Report Fraud and Protect Yourself

If you have inside knowledge of fraud against the City of Chicago – whether as an employee, contractor, or business insider – you may have a legal right to blow the whistle and receive a financial reward. Under the Chicago False Claims Ordinance (CFO), whistleblowers who expose fraud against the city can file a qui tam lawsuit and recover up to 30% of the money the city recovers.

At Justice Legal Counsel (JLC), we help whistleblowers navigate the legal process, protect their rights, and pursue financial compensation for exposing fraud. If you suspect fraud against the City of Chicago, this guide will show you how to report it safely and maximize your potential reward.

What Is the Chicago False Claims Ordinance?

The Chicago False Claims Ordinance (CFO) is a whistleblower law that allows private individuals to report fraud against the city and file lawsuits on the city’s behalf. If the lawsuit succeeds, the whistleblower can receive a percentage of the recovered funds.

The law applies to fraud involving city contracts, grants, procurement, and public funds – whether committed by businesses, contractors, employees, or third parties.

If you know about fraud against the City of Chicago, you may be able to file a claim and receive a financial reward.

Who Can File a Whistleblower Lawsuit?

Anyone with knowledge of fraud against the City of Chicago can file a claim under the CFO, including:

Employees who witness fraudulent billing, overcharges, or misrepresentations.
Contractors or subcontractors who know of false claims made to the city.
Competitors who are aware of businesses engaging in fraud.
Insiders who have access to fraudulent financial documents or records.

Even former employees can file a claim if they learned about the fraud while working for the company.

Types of Fraud That Qualify Under the Chicago False Claims Ordinance

1. False Billing & Overcharges

A contractor submits invoices for work never completed or materials never delivered.
A city vendor inflates costs on a government contract.

2. Kickbacks & Bribery

A business pays city officials or employees under the table in exchange for contracts.
A company offers financial incentives to secure bids in violation of fair bidding laws.

3. Fraudulent Grant or Loan Applications

A nonprofit or business falsely claims eligibility for a city grant or funding.
A landlord receives public housing funds but does not provide services as promised.

4. Minority/Women-Owned Business Fraud (MBE/WBE Fraud)

A company falsely claims to be minority-owned to qualify for city contracts.
A prime contractor uses a fake minority-owned business as a front to meet city requirements.

5. Payroll & Wage Fraud

A contractor underpays workers on city-funded projects, violating prevailing wage laws.
A business misclassifies employees as independent contractors to avoid payroll taxes.

6. False Certifications & Misrepresentations

A business falsely certifies compliance with contract terms to secure payments.
A company hides safety violations to maintain city funding.

If you suspect any of the above forms of fraud, you may have a valid whistleblower claim under the CFO.

How Much Money Can a Whistleblower Receive?

Under the Chicago False Claims Ordinance, whistleblowers can receive:

15% to 30% of the total recovered funds if they file a lawsuit on behalf of the city.
Treble damages (triple the fraud amount) and penalties apply, meaning payouts can be substantial.

Example:

A contractor overbills the City of Chicago by $5 million for services never provided.
The city sues under the CFO and recovers $15 million (treble damages).
The whistleblower could receive between $2.25 million and $4.5 million as a reward.

How to File a Whistleblower Claim Under the CFO

Step 1: Gather Evidence

Strong whistleblower cases require hard evidence. Useful documents include:

Emails or memos discussing fraudulent activity.
Invoices or contracts showing false billing.
Financial statements proving overcharges or misrepresentations.
Internal reports detailing fraud within the company.

Step 2: Contact a Whistleblower Attorney

Filing a qui tam lawsuit under the CFO requires legal knowledge and must be handled carefully. A whistleblower attorney can:

File your claim under seal to protect your identity.
Negotiate your reward percentage with the city.
Shield you from retaliation under whistleblower protection laws.

At Justice Legal Counsel, we protect whistleblowers and help them maximize their financial rewards under the CFO.

Step 3: File a Qui Tam Lawsuit Under the CFO

Your attorney will file a sealed lawsuit on behalf of the City of Chicago. The city will then:

Investigate the allegations.
Decide whether to intervene (take over the case).
Recover stolen funds if the case is successful.

If the city recovers money, the whistleblower is entitled to a share of the recovery.

Whistleblower Protections: Can Your Employer Retaliate Against You?

The Chicago False Claims Ordinance prohibits retaliation against employees who report fraud. This means:

Your employer cannot fire, demote, or harass you for being a whistleblower.
If retaliation occurs, you can sue for damages, reinstatement, and back pay.

If you fear retaliation, Justice Legal Counsel can help protect your rights while pursuing your claim.

Why You Should Act Now

Statute of Limitations

You have 5 years from the date of the fraudulent activity to file a claim. However, waiting can:

Reduce your chances of recovering rewards.
Allow others to file before you and claim the whistleblower share.

The First-to-File Rule

Under the CFO, only the first whistleblower to report fraud is eligible for a reward. If someone else files before you, you could lose your right to claim compensation.

If you have evidence of fraud, don’t wait – contact us today.

How Justice Legal Counsel Can Help

At Justice Legal Counsel, we represent Chicago whistleblowers in false claims cases. Our firm:

Protects your identity and prevents retaliation.
Maximizes your potential reward.
Handles all legal filings and negotiations with the city.

If you have information about fraud against the City of Chicago, you may be entitled to a significant financial reward.