False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG May 17, 2005
		Sign Up for this FREE Newsletter n Previous Newsletters n TAF Home Page n About TAF-EF n The False Claims Act n Email editor Please take a moment to forward this FREE electronic newsletter to others that might be interested!                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
			GAO:  $45 Billion in Improper Payments -- and Growing The GAO says there are over $45 billion in improper payments by the Federal  Government, and that this number will rise in the years ahead.  Sadly, no one is even bothering to estimate the amount of improper payments in some of the biggest federal programs such as Medicaid (outlays exceeding $175 billion annually), or the Department of Education's Title I Program (outlays of over $10 billion annually). >> To read the report
			Is the FBI Ripping-off HCFAC? The GAO reports that much of the $114 million a year earmarked by Congress for investigating health care fraud appears to have been shifted to other purposes such as fighting terrorism. Sen. Charles Grassley (R-IA), who requested the study, said, "It's inexcusable that the government cannot account for millions of dollars set aside to fight health care fraud."  >> To read the report
			Oracle Pays $8 Million ORACLE has agreed to pay $8 million to resolve a False Claims Act case in which a whistleblower alleged that the company pocketed millions of dollars in unused funds advanced for computer training.   The whistleblower in the case will receive $1.58 million of the $8 million settlement. >> To read more
			IRS Whistleblower Amendment An amendment by Senator Charles Grassley (R-IA) that would create a Whistleblower Office in the IRS has been added to the Senate version of HR 3 (the highway bill).  Though HR 3 passed the House without this provision, it is likely to remain in the Senate version. The amendment would allow awards of 15 to 30 percent, provided the IRS acted on information generated by the relator. >> To read the IRS whistleblower language at Sec. 5508
			The Custer Battles Defense Custer Battles' lawyers continue to put the best face forward on their clients activities in Iraq.  "Did these guys do things based on their inexperience that were stupid? No question," attorney Richard Sauber told The Washington Post, but he says it did not matter since Custer Battles was operating under a fixed price contract.  Except that it wasn't.  Air Force Maj. Darwin Kirby says Custer Battles was paid under a time-and-materials contract. >> To read more
			Podiatrist Convicted of Killing Whistleblower A federal jury has convicted a Chicago podiatrist of 25 counts, including the murder of a disabled patient who blew the whistle on massive Medicare fraud. Prosecutors said physical evidence tied Mikos to the murder of Joyce Brannon, including a spent cartridge and shell casings in his car, and a missing revolver from his storage locker.  Dr. Ronald Mikos now faces the death penalty. >> To read more
			Nixon Sues Two Drug Makers Missouri Attorney General Jay Nixon has filed suit against drug makers Dey Inc. and Warrick Pharmaceuticals Corp.  The Missouri Attorney General says the state Medicaid program paid at least $15 million too much between 1994 and 2004.  Under the Missouri Health Care Payment Fraud and Abuse Act, companies defrauding Medicaid can be found liable for $5,000 for each separate act of fraud, in addition to interest and triple damages. >> To read more