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Archive for February, 2010
He Who Sues the King as for Himself – Qui Tam
Private citizens who sue on behalf of the government are pursuing a Qui Tam case. These suits are aka whistleblower lawsuits.
Qui Tam is a rather unusual word and not many people hear about it during their daily lives. It is most frequently associated with whistleblower lawsuits, where a private individual is suing a business on behalf of the government, for defrauding the government. Of interest is the fact that some whistleblowers make some very good money doing this, not that it was their main motivation to file the suit in the first place though.
“Qui Tam is actually a provision of the Federal Civil False Claims Act (1863) and any claims filed here allege fraud by government contractors and/or other people who receive or abuse government funds,” explained Seth Wilburn, of the Gomez Law Group, a Dallas employment lawyer and Dallas business lawyer.
Whistleblower protection laws offer security for people who tell the government they think someone is ripping them off. The actual term is Latin and reads “qui tam pro domino rege quam pro se ipse,” which loosely translated means “He who sues the king as for himself.” The initial introduction of this law was to battle fraud during the Civil War and stop government suppliers from ripping them off. How ironic that this law, first enacted in 1863 and revised in 1986, is still in place to stop the same illegal actions. Obviously, some things never change.
Any benefits the government gets from a Qui Tam lawsuit brought by someone on their behalf, means the person who filed the claim may get a percentage of any money recovered or damages as a result of any fraud exposed. “In most instances, private individuals file Qui Tam suits and settle in for a long, contentious and complex trial,” said Wilburn.
“The person who brings the suit is often referred to as a ‘relator’ and in filing does not need to have been personally harmed by the defendant’s conduct. In addition, the False Claims Act lets the relator recover anywhere from 15% to 30% of any settlement and has their attorney’s fees paid. These cases must be handled by an attorney because they are filed on behalf of the government,” added Wilburn.
While Qui Tam cases are not frequent, they are definitely a part of the legal landscape and those with claims that the government is getting ripped off by a contractor or other person should speak to an experienced attorney.
Gomez Law Group is a Dallas employment lawyer and Dallas business lawyer. To learn more, visit http://www.gomezlawyers.com.
Beware of Check Fraud
When cash is tight in a recession, check fraud is a serious matter. Be aware that check forgeries are still a major problem in banking circles.
At one time there used to be a great deal of check fraud going on. With the advent of the Internet, fraud schemes that became even more popular involved things like stealing identities and credit card numbers through electronic means; often referred to as “phishing.” Unfortunately however, check forgery and other alterations are still a major problem that you need to know about.
Losing any money out of your bank account that you did not expect may cause real financial problems for people these days. Even if the money is eventually given back, it takes a long time to file a dispute and see it through to its conclusion. In some instances, one fraudulent check can put a family behind on paying their bills, like their mortgage payment. If you are facing foreclosure, you need to know what kinds of check frauds are prevalent today.
The first kind of fraud you may run across is when someone forges your signature on a check and then blatantly proceeds to cash it. If that happens, the bank normally takes the loss, because they weren’t paying attention to the signature on the check. Frankly, most banks don’t take the time to check signatures anymore.
In cases like this, a forged signature does not mean you are responsible because the signature is ineffective. What this means is that your bank may only take funds out of your account if the check they have in their hands is properly payable. A check with a forged signature is not considered to be properly payable. It’s up to the bank to check the customer’s signature to spot possible forgeries.
Other forgeries that appear to be relatively successful these days are check endorsements. This could happen if your check was stolen or you lost it after you signed it. However, this is another example of a check that is not properly payable. It the bank does debit your account, it should be responsible for giving it back later.
Altering checks after they have been written is another favorite fraud tactic, with the leading alteration being the amount being changed. When the alteration is made fraudulently and the customer did not make it and initial the change, you have no obligation. Sadly, some banks will go ahead and debit for the original amount indicated on the check making it still a good deal for thieves to alter checks.
If you think something like this has happened to you, work with the bank to get the situation sorted out, but make sure you do this quickly, as there are strict statutes of limitations in place.
Seth Wilburn writes for the Gomez Law Group, a Dallas employment lawyer and Dallas business lawyer. To learn more, visit Gomezlawyers.com.
Avoiding Securities Fraud
For those just starting out in the world of securities investment, be wary of things that don’t seem quite right. It may be a scam.
First time investors are often not too sure just what securities are and how to invest wisely. In a nutshell, securities are investments that are regulated by the government and include mutual funds, bonds, stocks and government securities. Anytime a person invests money, they want to avoid scams that will take them for all they’ve got.
Some handy tips for the first time investor would make that initial toe in the water a little easier to handle. “The hardest part about investing is the person doesn’t get to see or hold what they’re writing a check for in the first place. It’s not like buying real estate. In cases where you don’t get to see what you’re paying for, do due diligence and check the whole thing over until you are sick of hearing about it, but sure you have a legitimate investment opportunity,” said Seth Wilburn, of the Gomez Law Group, a Dallas employment lawyer and Dallas business lawyer.
If someone is using hard sell tactics to push an investment opportunity and suggesting there will be high returns and very little risk, run in the opposite direction if the pressure is to buy immediately. This is one of the red flags investors may use to decide if they are comfortable with buying something. “Whatever you do, don’t buy any financial investment from anyone not licensed with the National Association of Securities Dealers,” added Wilburn. “The investments those individuals are hawking are not registered, they usually don’t have a license and they’re insisting no one else will get the same chance as you will to invest in this deal of a lifetime,” he emphasized.
There are definitely some very complicated and complex securities that may be bought, such as inverse and leveraged ETFs, stock options and futures contracts. The first time investor is best advised to steer clear of the complexities of these kinds of securities and stick with listed bonds and stocks that are traded publically on stock exchanges, or they could opt to go with money market or government securities. These are safe and relatively easy to understand and definitely on the up and up.
Of all the choices out there on the market, the safest are mutual funds because they are heavily regulated and anyone selling them requires a license. So for first time investors, go slowly, carefully and invest wisely in securities you know are secure investments. Leave the high flying, questionable and shaky deals alone and keep your money,” advised Seth Wilburn, of the Gomez Law Group, a Dallas employment lawyer and Dallas business lawyer.
Gomez Law Group is a Dallas employment lawyer and Dallas business lawyer. To learn more, visit http://www.gomezlawyers.com.
Employers and Employees Should Know Their Rights
Did you know that there are some questions an employer may not ask? It is illegal to bring some things up in a job interview.
It happens; employers try and ask illegal job interview questions, but in such a way that they don’t sound like one of the “no-no” questions. This is illegal and no matter what way they try to phrase their question, you are protected from being discriminated against unfairly. Be on your toes and know which questions are illegal and why the question “is” illegal.
It’s a major tenet in the US that no one may be discriminated against because of their nation of origin, color or race. This law is enshrined in the Civil Rights Act (1964) and was later expanded to other groups. An example of an illegal question in this area could be: “ Since you’re Mexican and don’t speak English that well, how do you think you will fit in with an all English speaking work crew who doesn’t speak Spanish?”
If you happen to be Catholic or Protestant or Muslim, the interviewer cannot ask you what religion you are and this right also comes under the auspices of the Civil Rights Act. Even a question that comes out like: “Is your family involved in church activities?” is not allowed.
During your job interview you may not be asked anything that refers to pregnancy, marriage or sex. This ban is imposed by the Equal Pay Act (1963) and someone who tries to ask if you are planning on having more children (or any children) is way out of line.
Another Act that you may be familiar with is the Wagner Act (1935) that protects individuals from being discriminated against due to any affiliations with groups, most often unions. That means the interviewer may not ask if you have ever been a member of a union. Nor may they ask how old you are, so if they try and sneak in a question about birthdays, be on your guard. The Age Discrimination in Employment Act (1967) takes care of that illegal question. Age may be relevant if you are under 18-years old and are applying for a job that requires years of training in a particular skill. Nonetheless, they are still not allowed to ask that question.
Asking someone if they have physical or mental disabilities is also illegal and a potential employer may not ask this is any way, shape or form, not even “Would you require medical support while working?” There is one rather gray area here, and that relates to someone who may need a larger screen to see properly or a special chair. These requirements may be discussed; however, it’s usually the applicant that brings this up by way of mentioning what they need to work there, not because the employer asks. People with disabilities are guaranteed protection under the Americans with Disabilities Act (1964).
Keep in mind that just because these questions are not allowed to be asked doesn’t stop someone from asking them anyway. Why would they do that if they’re not allowed to ask them according to the law? That’s the issue; they aren’t aware of the law. However, having said that, not knowing the law when you are an employer is no excuse. For those of you who are asked questions like this, you have the right to refuse to answer them.
Seth Wilburn writes for the Gomez Law Group, a Dallas employment lawyer and Dallas business lawyer. To learn more, visit Gomezlawyers.com.