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False Claims Act Update & Alert |
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Taxpayers
Against Fraud Education Fund | Washington, D.C. |
WWW.TAF.ORG |
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n TAF Home Page n Previous Newsletters n Email editor
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Press
contact:
Jeb White 202-296-4826 ext. 25 |
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House Passes False
Claims Act Amendments
Bill Would Strengthen Primary Federal Fraud-fighting Tool A bill aimed at strengthening the ability of the Federal Government to go after fraudulent contractors passed the U.S. House of Representatives today. “At a time when the U.S. Government is spending hundreds of billions of dollars to jump start our faltering economy, Congress needs to reassure the American people that there will be a zero tolerance approach to fraud” said Taxpayers Against Fraud President Jeb White. “This bill strengthens the tools Government needs to help recover America’s stolen money.” The Fraud Enforcement and Recovery Act of 2009 sailed through the House by a vote of 367 to 59 nays, and is the first significant amendment to the False Claims Act in nearly 25 years. The Senate passed a similar vote, by a vote of 92-4 on April 28th. The new legislation underscores the fact that the False Claims Act protects all federal funds, including those disbursed by government contractors. In addition, by attaching liability to those who wrongfully retain overpayments, this bill finally ends the "finders keepers" regime that permeates government contracting. The Fraud Enforcement and Recovery Act of 2009 will also offer greater protection for America's courageous whistleblowers and empower the Justice Department with the investigative tools it needs to uncover more evidence of suspected fraud. With Troubled Asset Relief Program (TARP) and stimulus funds vulnerable to fraud, this legislation could not come at a more critical time. Neal Barofsky, the Inspector General of TARP, says the program is "inherently vulnerable to fraud, waste and abuse" which could top "hundreds of billions of dollars” if oversight is lax. The U.S. Government Accountability Office estimates that scores of billions of dollars are already being stolen every year from Medicare, Medicaid, Homeland Security, major infrastructure projects, and contractors working in Iraq and Afghanistan. The False Claims Act works by incentivizing whistleblowers to come forward and partner with the U.S. Government to recover stolen money. The cost of investigations and prosecutions, as well as whistleblower awards, are funded by triple damage penalties which work to penalize companies above and beyond the cost of doing business. The Act has recovered nearly $24 billion since it was last amended in 1986. However, judicially created limitations and qualifications have increasingly limited the reach of the False Claims Act. Today's legislation properly restores the Act's liability provisions and clears up some of the judicial confusion plaguing whistleblower suits. Notes Jeb White of Taxpayers Against Fraud: "While there are still major problems in the False Claims Act that should be addressed by Congress, this legislation is a giant leap forward for our country's fraud-fighting efforts. Without a doubt, Uncle Sam is ramping up to go after fraudsters. Liars, cheats and thieves should be on notice." |
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