False Claims Act Update & Alert

 
 

Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG          
March 6, 2008

 
     
   

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Allison Engine at Supreme Court
On February 26, the Supreme Court heard oral arguments in the
Allison Engine case.  The case revolves around whether "presentment is required for violations of the False Claims Act under 31 U.S.C. § 3729(a)(2) and (a)(3).  Assistant Solicitor General Malcolm Stewart focused the Court on the actual language of the Act, while Jim Helmer, lawyer for the relator, reminded the court that this case is about a Navy subcontractor that jeopardized the lives of our sailors for the sake of stealing federal funds and is largely fact-driven.  In defense of the contractor, lawyer Ted Olson pointed 14 times to the 1987 Tanner decision, which he argued is dispositive in the Allison Engine case despite the fact that it addresses an entirely different law. >> To read the transcript


Senate Judiciary Hearing on FCA

On February 27, the Senate Judiciary Committee held a hearing on S.2041, the FCA Correction Act.  This bill has strong bipartisan support from Senators Grassley, Durbin, Leahy and Specter.  The bill would:
4Clarify that FCA liability occurs whenever Federal money is being misspent, even when the claim is presented to a primary contractor by a subcontractor rather than directly to a government employee;
4
Clarifies the U.S. Government has the exclusive right to determine if a whistleblower is the original source of information under the "public disclosure" bar; 
4
Clarifies that funds under the trust and control of the U.S. Government are subject to recovery under the False Claims Act;
4Clarifies that government employees may act as qui tam relators in limited circumstances;
4 Makes technical and clarifying amendments to the statute of limitations in FCA cases, as well as technical edits to the Civil Investigative Demands authorized under the current False Claims Act.
 
>> To read more
>>
Testimony and Web Cast Video


Cathedral to Pay $5.3 Million
Cathedral Healthcare System has agreed to pay $5.3 million, plus interest, to settle allegations it defrauded Medicare by increasing outlier payments in order to obtain enhanced reimbursement from the Federal Government. 
>>
To read more