False Claims Laws in Chicago, Cook County, and Illinois: What You Need to Know

False claims laws exist to protect public funds from fraud and abuse. In Chicago, Cook County, and Illinois, businesses and individuals that submit false claims for government funds can face serious legal consequences, including heavy fines and liability under the Illinois False Claims Act and local ordinances.

If you have knowledge of fraud against the government, you may have the right to file a whistleblower lawsuit and potentially receive a financial reward for exposing fraud. Below, we break down false claims laws and provide industry-specific examples of violations.

Illinois False Claims Act (740 ILCS 175/1)

The Illinois False Claims Act (IFCA) makes it illegal to knowingly submit false or fraudulent claims for payment to the government. It applies to state and local funds, including Medicaid, contracts, grants, and tax programs.

Whistleblowers (also known as relators) who file lawsuits under the IFCA may receive up to 30% of the recovered funds if the case is successful.

Chicago and Cook County False Claims Laws

Chicago False Claims Ordinance (Municipal Code of Chicago, § 1-22-010 et seq.): Similar to state law, this ordinance allows Chicago to pursue fraud claims related to city contracts, grants, and tax programs.
Cook County False Claims Ordinance (§ 34-250 et seq.): This law prohibits fraudulent claims for county government funds, including healthcare programs and public contracts.

Examples of False Claims Across Different Industries

False claims can occur in many industries where businesses or individuals interact with government funds. Below are some common examples:

Healthcare Industry

Medicaid Fraud – A healthcare provider bills Medicaid for services that were never provided or overcharges for prescriptions.
Upcoding – A doctor’s office inflates billing codes to get higher reimbursements for routine procedures.
Kickbacks – A medical supplier pays a hospital to use its products in violation of anti-kickback laws.

Construction and Government Contracts

Overbilling on Government Contracts – A construction company inflates costs on a Cook County public works project.
Falsifying Minority Business Participation – A contractor falsely claims to be using a minority-owned subcontractor to win a city contract.
Using Substandard Materials – A company bills the city for high-quality materials but delivers lower-quality supplies instead.

Education and Research Grants

Misusing Public Grants – A university researcher falsifies data to obtain an Illinois state-funded research grant.
Inflated Student Enrollment – A private school submits false student enrollment numbers to receive additional state education funding.
Financial Aid Fraud – A school falsifies student financial information to qualify for more federal and state tuition assistance.

Tax and Financial Fraud

Underreporting Revenue – A business fails to report all its sales to avoid paying Chicago or Illinois state taxes.
False Property Tax Exemptions – A commercial property owner wrongly claims a tax exemption meant for non-profits.
Payroll Fraud – A company falsifies employee wages to receive tax credits or government incentives.

COVID-19 and Relief Fund Fraud

PPP Loan Fraud – A business submits false payroll records to receive a Paycheck Protection Program (PPP) loan.
Employee Retention Credit (ERC) Fraud – A company falsifies documents to claim tax credits under the ERC program.
COVID Relief Fund Abuse – A business inflates revenue losses to qualify for government pandemic relief grants.

Whistleblower Protections and Rewards

If you report false claims under the Illinois False Claims Act, you are protected from retaliation, including firing, demotion, or harassment. Whistleblowers who help the government recover funds may receive a reward of up to 30% of the recovered amount.

Justice Legal Counsel Can Help

If you have evidence of false claims or fraud against the government in Chicago, Cook County, or Illinois, you may have a whistleblower case. Justice Legal Counsel can help you file a claim, protect you from retaliation, and seek a financial reward.