History
The Illinois Whistleblower Reward and Protection Act
is directly connected to the Federal False Claims Act of 1863. The
False Claims Act was enacted by President Abraham Lincoln's administration
because of crooked Civil War munitions suppliers who put sawdust
in the gunpowder and then sold it to the Union Army. In 1986, President
Ronald Reagan signed the False Claims Reform Act, and in 1991 State
Treasurer Pat Quinn moved a similar law through the Illinois General
Assembly. Most recently, in 1995, the state act was amended to allow
any local taxing body to pass a resolution that would make all provisions
of the Illinois Whistleblower statute apply to their governments.
Which Taxing Bodies Have Adopted the Act?
To date, the following local governments have adopted
the Illinois Act: -Palos Heights -Palos Hills -Country Club Hills
-Hazel Crest -Worth Township -York Township -School District 203
in DuPage County
How Do Taxing Bodies Adopt the Act?
Adoption of the Act is very simple. A taxing body
need only vote to adopt the act and file its resolution with the
Illinois Attorney General's Office stating that the public body
wants to fall under the protection of this particular state statute.
How to Report Fraudulent Behavior
If you have knowledge of fraudulent behavior or mismanagement,
contact the Illinois State Police at (217) 782-7263 or (312) 814-2834
or the Attorney General at (312) 814-3000, who will then conduct
an investigation.
What Happens After Reporting the Fraudulent
Behavior?
After you report the fraud, the Attorney General determines
if there are grounds for a lawsuit. If so, the Attorney General
will take the case on behalf of the whistleblower. If the Attorney
General refuses to become involved, the citizen may bring a civil
action in any circuit court on behalf of him/herself and the State.
Why Report Fraudulent Behavior?
The Whistleblower Reward and Protection Act allows
the taxing body to benefit because guilty parties are required to
pay triple the damages incurred as a result of their fraudulent
actions. This damage award will cover the whistleblower's award,
pay for damages suffered as a result of the fraud, and also provide
extra revenue for the particular taxing body. The Act also encourages
honest government by providing an incentive to report fraudulent
actions. Whistleblowers receive portion of the damages recovered
from the fraudulent party. If the Attorney General files the suit,
the whistleblower will receive 15 to 25 percent of the damage award.
If the whistleblower independently files a civil case, he/she is
eligible for 25 to 30 percent of the damage award, all court costs,
and legal fees. Monies collected from a judgment or settlement will
be deposited into a special fund and one sixth of the money will
go to the Attorney General, one sixth will go to the State Police,
and the remaining two-thirds will be set aside for payments to individual
whistleblowers, and their attorney's fees.
Protection Against Frivolous Claims
To protect taxing bodies from having to defend against
frivolous lawsuits, the Act sets forth strict and expensive punishments
for citizens who make false claims. If the State does not proceed
with the action and the whistleblower brings his/her own action,
the court may award the defendant's attorney's fees and expenses
if the defendant prevails and the court finds that the whistleblower's
claim was "clearly frivolous, clearly vexatious, or brought
primarily for purpose of harassment."
Won't Reporting Make My Employer Angry?
Employers who either ignore or encourage fraudulent
behavior will likely become angry and possibly attempt to discourage
whistleblowers from making reports. Therefore, to protect whistleblowers
from retaliation from their employers, the Act sets forth specific
penalties for any employer who discharges, demotes, suspends, threatens,
harasses, or discriminates in any way against an employee who acts
legally in furtherance of the Whistleblowers Reward and Protection
Act. Relief provided by the Act includes reinstatement with prior
status, two times the amount of back pay owed, interest on back
pay, and compensation for any special damages including attorney's
fees and other litigation costs.
Examples of Rewards to Illinois Whistleblowers
- Health Care Service Corp., Blue Cross/Shield of
Illinois accused of systematically defrauding Medicare (1998)-$29
million
- Illinois based Medline accused of defrauding the
Dept. of Veterans Affairs (1996)-$1 million
Helpful Numbers
For more information: Illinois Treasurer State of
Illinois Center Suite 15-600 100 West Randolph Chicago, IL 60601
(312) 814-3571
For case review: Illinois State Police Division of
Internal Investigation 500 Armory P.O. Box 19461 Springfield, IL
62794-9461 (217) 785-4379 or (312) 814-3826
Results From Whistleblowers Studies
(reported in the Chicago Tribune, 7/23/95)
Who Blows the Whistle:
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