The False Claims Act (FCA) creates strong financial incentives for whistleblowers to file lawsuits. Successful whistleblowers have obtained multi–million dollar payouts. Sometimes, however, a whistleblower – in his or her attempt to strike it rich – crosses an ethical line and suffers the consequences.

Such is the case in U.S. ex rel. Frazier v. IASIS Healthcare Corp. , 2012 WL 130332 (D. Ariz. Jan. 10, 2012). In that case, the whistleblower had been the compliance officer of IASIS. The company terminated his employment, but requested him to remain as a consultant for another year to assist with the transition to a new compliance officer. The whistleblower later filed an FCA case against his former employer, alleging that IASIS requested federal payment for medically unnecessary services and for health care services that violated the Stark law and the antikickback statute. The court previously dismissed the whistleblower's case as defective. The court's most recent decision addressed misconduct by the whistleblower and his lawyers.

According to IASIS, prior to leaving his employment at the company, the whistleblower "copied and removed approximately 1,300 pages of documents, emails and other IASIS Healthcare proprietary materials." The whistleblower did not notify IASIS that he was taking the documents, nor did he have the company's permission to take the records. The court concluded that the whistleblower "stole documents from IASIS without permission and then used those documents against IASIS in the present lawsuit."

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