Fraud By The Numbers Series
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Recent Ninth Circuit Decision Empowers Whistleblowers to Pursue Customs Fraud Cases in Districts with Some of the Busiest Ports
The United States is the world’s largest importer, bringing in an estimated $2.49 trillion worth of goods and services in 2024, following $3.85 trillion in 2023. Much of this trade flows through just a handful of U.S. ports, especially those on the West Coast. Against this backdrop, the Ninth Circuit’s recent decision in U.S. ex…
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DOJ Trendlines
In 2024, more whistleblowers came forward to report fraud than ever before. As we have each year on Fraud by the Numbers, we are looking at the U.S. Department of Justice’s (DOJ) annual False Claims Act (FCA) statistics for the prior year.[1] As DOJ recognized in its own press release, 2024 set a remarkable record…
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Welcome to Fraud by the Numbers
Welcome to The Anti-Fraud Coalition’s Fifth Annual Fraud by the Numbers! Each year in September, TAF Coalition uses cold, hard numbers and facts to illustrate how fraud costs the government, taxpayers, and market participants – and how impactful whistleblowers can be in stopping that fraud. We will post one blog per business day this month…
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Life Is a Highway: NHTSA Finalizes Whistleblower Program Rules
On Thursday, December 12, 2024, the Department of Transportation’s National Highway Traffic Safety Administration (“NHTSA”) released final rules regarding its Auto Safety Whistleblower Program. The rules outline the whistleblower award process, the filing requirements, and the eligibility criteria for potential whistleblowers. A “whistleblower” is defined in the rules definitions as: any employee or contractor of…
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Fraud in the Face of Disaster: How the False Claims Act Protects the Integrity of Government Disaster Aid
Natural disasters bring out the very best—and the very worst—in humanity. Countless individuals step forward after a hurricane, wildfire, or pandemic, risking their own safety to help those in need. Communities rally together, neighbors become lifelines, and strangers become heroes, embodying the spirit of resilience and selflessness that defines the best of who we are.…
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Reading the Winds: The SEC’s Cybersecurity Program After SolarWinds
Cybersecurity is—or should be—the focus of growing concern among companies in all sectors of the economy. A serious breach, or even a hint of vulnerability, can cost a company millions, in direct costs, lost customer trust, and ultimately, lost value. Consequently, a company’s cybersecurity record is increasingly important to its market position and increasingly of…
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Recent Developments in False Claims Act Constitutionality
Though qui tam constitutionality has been challenged for decades, two cases, Polansky and Zafirov, are setting the tone for the modern debate. In June 2023, the Supreme Court issued a decision in U.S. ex rel. Polansky v. Executive Health Resources, Inc. The case reached the Supreme Court after the circuit court affirmed the district court’s…
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A Brief History of False Claims Act Constitutionality
The False Claims Act (FCA) prohibits the submission of false or fraudulent claims to the United States government. The FCA includes a qui tam provision, which allows private individuals who allege that a defendant submitted false claims to file a case and pursue damages on the government’s behalf. These individuals, known as “relators,” file a…
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The Middle District of Florida Court Finds the Qui Tam Provision of the False Claims Act Unconstitutional because a Relator is an “Officer” of the United States
Despite all previous Circuit Courts holding that the FCA is constitutional under Article II, the court held that an FCA relator is an officer of the United States must be appointed and dismissed the case. On September 30, 2024, the Middle District of Florida granted the defendants’ Motion for Judgment on the Pleadings in United…
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More Resources Are Needed in the Fight on Fraud
Over the last month, Fraud by the Numbers has emphasized the vast problem of fraud on the government and our financial markets – fraud that is not just taking money out of your pockets, but is causing harm to patients, members of our military, and the stability of our financial systems and future – and contrasted it…
