False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG January  17, 2007
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			DoI Inspector General Expected to Allege Cover Up The Inspector General of the U.S. Dept. of Interior is expected to testify tomorrow that the Mineral Management Service covered up the nonpayment of royalties on oil and natural gas pumped from public lands.  A trial in a False Claims Act case alleging the same type of fraud began in Colorado on Tuesday.  In that case, former Mineral Management Service auditor Bobby Maxwell accuses Kerr-McGee of cheating the government out of millions of dollars of royalties, while top Dept. of Interior officials looked the other way.   >> To read more
			Orthotic Kickback Cases The orthotics industry appears to have built its business plan not on producing better products at better prices, but on paying kickbacks to doctors and hospitals.  Notes Boston Assistant U.S. Attorney Michael Loucks. "We have more cases in this area than we have people to prosecute them," and "Lately, a lot of allegations have been walking in the door."  >> To read more
			Safeway Stores on the DRA While some Medicaid providers are whining that the Centers for Medicare and Medicaid Services has not provided enough guidance on a new law requiring them to establish False Claims Act education policies, some companies are simply complying with the new law.  >> To read Safeway's Policy (PDF)
			SBA Loan Scam A former top official of Allied Capital's Business Loan Express (BLX) unit has been indicted on charges he defrauded the Small Business Administration on 76 loans valued at $77 million.  Patrick Harrington and other BLX employees are charged with originated SBA-guaranteed loans knowing the financials and other qualifications were fraudulently overstated. >> To read more
			Quote of Note "It might be natural for the court to wonder why would it be in the government's interest to advocate that a share of the money damages in this case should be given to a private party," Justice Department lawyer Malcolm Stewart told the Supreme Court during the oral arguments in US Ex Rel James Stone v. Rockwell International Corp., argued in December. "In our view, Stone is precisely the type of relator that Congress intended to encourage." >> To read more