How can you file a claim on the False Claims Act from Kentucky? Does the “whistle blower” law apply to Kentuckians filing claims on companies in Kentucky or elsewhere? Yes, in Kentucky there are actions that can be taken to fight Corporate Fraud.

The False Claims Act is a federal law that enforces liability on people and companies who defraud the federal government. For example, a company that bills for non-existent services has violated the False Claims Act. By reporting this violation to the Feds, the reporter may receive a reward from the agency in question.

There are six elements that must be proven by evidence in order to establish fraud.

  1. There must be a statement that is known to be false or made recklessly;
  2. a material representation;
  3. false documents;
  4. false statements made with intent to cause people to act upon them;
  5. injury caused by false information;
  6. actions that resulted in financial loss after getting false information.

Fraud in Kentucky can take place by proclaiming a partially true statement, by willingly telling a lie, and/or by willingly withholding information.

In Corporate Fraud, a plaintiff — the person who reports the fraud — can win the case if they can prove that a false statement was made in to persuade someone else to to do or not do take an action. For example, to lie about services that were never provided in order to get the government to pay an invoice. The plaintiff must be able to prove that the false information provided by the corporation lead to their action or inaction.

In Kentucky there have already been some big time corporate fraud cases that have resulted in huge winnings for the plaintiff versus the bigger corporations. However, there must be strong evidence on hand to back up the plaintiffs’ story.

These corporate fraud cases are difficult to rule on in certain instances because while the corporation can say something that is not entirely truthful, it’s still up to the individual or company being defrauded to use some common sense and critical thinking. Agreeing to something that seems too farfetched can actually cause them to lose the case.

This falls under the rule of “reasonable reliance,” which means that you are unable to be defrauded by a claim made by someone else, if you know that claim is false. It means the average person has enough knowledge to tell the difference between what is logical and illogical. The court will not bail out those who make obvious and blatantly poor decisions and attempt to file for Corporate Fraud.