The Illinois False Claims Act (IFCA) is a powerful tool that allows private individuals, known as whistleblowers, to sue on behalf of the state when they uncover fraud against government programs. It closely resembles the federal False Claims Act (FCA) but has some key differences that impact businesses, government contractors, and employees who witness fraud.
If you suspect fraud against the state or a local government entity in Illinois, understanding the IFCA is crucial. This guide explains how the law works, how it differs from the federal FCA, recent enforcement actions, and how whistleblowers can take action.
What Does the Illinois False Claims Act Cover?
The IFCA makes it illegal to:
- Submit false claims for payment to Illinois state agencies or local governments.
- Use false records or statements to get a claim paid.
- Conspire to defraud the government.
- Avoid paying money owed to the state.
Violators can face treble damages (three times the amount of fraudulently obtained funds) and civil penalties.
Whistleblower Rewards and Protections
One of the most significant aspects of the IFCA is its qui tam provision, which allows private citizens to file lawsuits on behalf of the state. If successful, whistleblowers may receive 15% to 30% of the recovered funds as a reward.
The law also protects whistleblowers from retaliation by their employers, including termination, demotion, or harassment. If an employer retaliates, the employee may be entitled to reinstatement, back pay, and other damages.
Recent Developments in Illinois False Claims Act Enforcement
The Illinois Attorney General has aggressively pursued fraud cases under the IFCA in recent years. Notable cases include:
- October 2023: A $70 million settlement with investment banks over fraudulent financial practices affecting state entities.
- September 2024: A $106.8 million settlement involving Walgreens, which faced allegations of fraudulent billing for prescriptions that were never dispensed. While this case was under the federal FCA, it reflects the ongoing fight against fraud in Illinois.
These cases demonstrate that both the state and federal governments are actively using False Claims Acts to hold businesses accountable.
How the Illinois False Claims Act Differs from the Federal False Claims Act
While the IFCA is modeled after the federal False Claims Act, there are key differences:
- Scope – The Illinois law applies to state and local government funds, including municipalities and school districts, while the federal FCA applies to fraud against the U.S. government.
- Types of Fraud – Both laws cover fraud in healthcare, procurement, and other government contracts, but state-specific fraud (such as state Medicaid programs) is prosecuted under the IFCA.
- Statute of Limitations – Illinois may have different filing deadlines compared to the federal FCA, so whistleblowers must act quickly.
What Should You Do If You Witness Fraud?
If you believe you have evidence of fraud against the state of Illinois, taking the right steps is critical:
- Gather evidence – Keep documents, emails, or records that support your claim.
- Consult an attorney – Filing an IFCA claim involves complex legal requirements. An experienced attorney can help protect your rights and maximize your reward.
- File a qui tam lawsuit – If your claim is strong, an attorney can file a sealed lawsuit on behalf of the state, allowing the government to investigate before the case becomes public.
Justice Legal Counsel Can Help
At Justice Legal Counsel, we help whistleblowers navigate the Illinois False Claims Act, protect them from retaliation, and maximize their potential rewards. If you suspect fraud against the Illinois government, contact us today for a confidential consultation.