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On a Friday in March 2013, a researcher working in the lab of a prominent pulmonary scientist at Duke University in Durham, North Carolina, was arrested on charges of embezzlement. The researcher, biologist Erin Potts-Kant, later pled guilty to siphoning more than $25,000 from the Duke University Health System, buying merchandise from Amazon, Walmart, and Target—even faking receipts to legitimize her purchases. A state judge ultimately levied a fine, and sentenced her to probation and community service.

Then Potts-Kant's troubles got worse. Duke officials took a closer look at her work and didn't like what they saw. Fifteen of her papers, mostly dealing with pulmonary biology, have now been retracted, with many notices citing "unreliable" data. Several others have been modified with either partial retractions, expressions of concern, or corrections. And last month, a U.S. district court unsealed a whistleblower lawsuit filed by a former colleague of Potts-Kant. It accuses the researcher, her former supervisor, and the university of including fraudulent data in applications and reports involving more than 60 grants worth some $200 million.

[...] Under an 1863 law, citizen whistleblowers can go to court on behalf of the government to try to recoup federal funds that were fraudulently obtained. Winners can earn big payoffs, getting up to 30% of any award, with the rest going to the government. Whistleblowers filed a record 754 FCA cases in 2013, and last year alone won nearly $600 million. The U.S. government, meanwhile, has recouped more than $3.5 billion annually from FCA cases in recent years.