False Claims Act Protections For Tech Workers Who Report AI Fraud
Companies are making false claims about what their AI can actually do. They’re pitching capabilities to investors, customers, and government agencies that simply don’t exist. If you work in tech and you’ve seen your employer misleading others about AI performance, you might have more options than you realize. The False Claims Act kicks in when companies defraud federal programs or agencies. Healthcare fraud, defense contracts, research grants. Any situation where government money’s involved. Tech workers who discover their companies are billing government entities for AI systems that don’t work as advertised can report this fraud. And they’re protected while doing it. At Whistleblower Law Partners, we help tech workers figure out their options when they’ve uncovered fraud involving AI systems that affect government programs or taxpayer dollars.
Common Types Of AI Fraud Affecting Government Programs
Here’s what AI fraud often looks like. Companies exaggerate what the technology can actually do. When these false representations lead to government contracts or reimbursements, they’re breaking federal law. Medicare gets billed for AI diagnostic tools that produce unreliable results. Defense contractors misrepresent their AI performance metrics to secure funding. Healthcare organizations charge government insurance programs for AI-powered services that rely mostly on human work. Some use AI systems that generate billing errors and systematically overcharge federal health programs.
You’ll see patterns:
- Charging for “AI-powered” services that humans actually perform
- Misrepresenting accuracy rates in AI decision systems
- Falsifying performance benchmarks to keep government contracts
- Billing premium rates for AI features that don’t work
- Using AI to inflate medical coding and billing claims
A Portland AI Billing Fraud False Claims Act Lawyer can help you figure out whether what you’re witnessing qualifies as fraud under federal law.
How The False Claims Act Protects You
The False Claims Act does more than recover taxpayer money. It shields whistleblowers from employer retaliation. Your company can’t legally fire you, demote you, or create a hostile work environment because you reported fraud. They just can’t.
If retaliation happens anyway? You can pursue legal action for reinstatement, double back pay, and compensation for damages. These protections stick around regardless of whether the government ultimately pursues your case. You don’t need absolute proof before coming forward. The law protects employees who have a reasonable belief that their employer violated the False Claims Act. This matters a lot in technology. Complex systems make it difficult to immediately distinguish between coding errors and intentional deception. That distinction isn’t always clear-cut, and the law recognizes that.
Filing A Qui Tam Case & Maintaining Confidentiality
When you report fraud under the False Claims Act, you’re filing what’s called a qui tam lawsuit on the government’s behalf. Your case begins under seal. It stays confidential while federal investigators review your allegations.
The government investigates and decides whether to intervene and take over the prosecution. Even if they decline, you can continue the case yourself with legal representation. Cases take time. Sometimes several years. But successful whistleblowers receive between 15% and 30% of whatever the government recovers. Working with a Portland AI Billing Fraud False Claims Act Lawyer means having someone who understands both the technical aspects of AI fraud and the legal requirements for qui tam cases.
What Documentation Helps Your Case
Strong whistleblower cases need solid evidence. Internal communications about AI performance issues help establish that people knew about problems. Testing results that contradict marketing claims matter. Billing records that don’t match actual services provided are valuable. You don’t need every piece of evidence before consulting an attorney. We can help you identify what documentation strengthens your case. We’ll advise you on legal ways to preserve evidence without violating company policies or laws.
The False Claims Act gives you a path to report wrongdoing while protecting your career. There’s also potential financial compensation for your courage in coming forward. We understand the tech industry and the unique challenges you face when you’re considering whether to speak up. Contact us for a confidential discussion about what you’ve observed and how whistleblower law might apply to your situation.