False Claims Act, qui tam, fraud, whistleblower, relator, settlement, civil fraud, fraud against government
False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG
March 1, 2005
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Northrop to Pay $62 Million
Northrop Grumman has agreed to pay $62 million to settle a False Claims Act case dealing with vastly inflated scrap metal claims submitted to the U.S. Government. By fraudulently inflating scrapping claims, Northrop Grumman inflated total contract prices for aircraft parts billed to Department of Defense. The case took 16 years to settle, during which time Northrop-Grumman paid no interest on the "borrowed" money.
>> To read more
Grassley to Gonzales on CPA
In a letter to Attorney General Alberto Gonzales, Sen. Charles Grassley (R-IA) urged the Attorney General to look carefully at the question of fraud against the Coalition Provisional Authority in Iraq: "If the FCA is found not to apply to any contract entered into by the CPA, any recovery for fraud, waste and abuse of taxpayer dollars under the FCA would be prohibited.... I would like to remind you of the potential danger that a negative precedent in this matter would create ...." >> To read letter
>> To read more about the lawsuit
Tenet Case To Be Retried
DoJ prosecutors say they will retry Tenet Healthcare, the second-largest U.S. hospital chain in the U.S., following a hung jury on criminal charges that Tenet's Dan Diego unit paid doctors for referrals. U.S. District Judge James Lorenz in San Diego has scheduled the retrial for March 29. >> To read more
Burying the Story?
Omission or commission? That's a question often asked when it comes to DoJ's failure to publicize False Claims Act cases. The DoJ web site does not offer an annual list of recoveries by case, much less settlement agreements or complaints. Relators and their counsel are rarely mentioned, while press releases seem to be timed for oblivion. Is press silence a negotiating point during settlement negotiations? That's a question Corporate Crime Reporter asked one Assistant U.S. Attorney handling the $49.2 million Novartis settlement. The answer: Thats not something I can comment on. >> To read more
Quote of Note
"There is no kind of dishonesty into which otherwise good people more easily and frequently fall than that of defrauding the government. "
- Benjamin Franklin
Forbes on the False Claims Act
"If the Senate ... is really determined to ferret out fraud, it should follow the False Claims Act model." >> To read more
Friends of TAF Education Fund
Without help from our friends in the relators bar, and grateful whistleblowers, the TAF Education Fund could not continue to perform the important work of supporting whistleblowers and educating the public about the False Claims Act. It is therefore with deep appreciation that we thank our contributors for their generosity, support, and leadership in 2004. >> Click here