False Claims Act/Qui Tam

This blog is about qui tam, a  lawsuit brought under the False Claims Act by a private plaintiff on behalf of the Federal or State Government (rather than by the Government itself). The False Claims Act was originally enacted by Congress in 1863, as a response to widespread abuses by government contractors against the Union Army during the Civil War. The qui tam provisions are now used widely and this blog is intended to keep readers up to date with all qui tam related news and to provide commentary when warranted.  This blog also contains an array of laws and regulations concerning qui tam set out in an easy to read format.

Posts tagged as:

whistleblower

U.S. Sen. Grassley Works to Strengthen False Claims Act

by Nolan and Auerbach on April 30, 2010

In May 2009, the President signed the Fraud Enforcement Recovery Act, sponsored by Senator Chuck Grassley and Senators Patrick Leahy and Ted Kaufman, made major changes to strengthen the federal False Claims Act by removing liability loopholes and addressing statutory confusion. Additional related, though less extensive changes, were made as part of the Patient Protection and Affordable Care Act enacted in March 2010, Grassley is now working to make sure that the recent changes made to the federal False Claims Act are recognized and incorporated by the 14 states that already have OIG-approved state False Claims Acts.

Consistency by a state with the Federal False Claims Act, is a requirement for a large federal incentive afforded to the state, when Medicaid dollars are successfully recovered in a Federal False Claims Act lawsuit. The federal incentive allows states to receive an additional 10% of the Medicaid recoveries if they allow whistleblower/qui tam lawsuits in their state False Claims Acts, as long as the state False Claims Acts afford the same rights to whistleblowers as the federal False Claims Act does.

In an April 28, 2010 press release , Grassley asked the Inspector General for the Department of Health and Human Services and the Attorney General to review existing state False Claims Acts, to make sure they are in compliance with recent changes to the federal False Claims Act; and to issue appropriate guidance for any state interested in the federal incentive.. In addition to the 14 states which have already qualified for this incentive (and are now subject to this review), six states applied for it but did not meet the requirements.

For the full press release, go to: http://www.iowapolitics.com/index.iml?Article=194624. For more information about qui tam law and health care fraud, contact Nolan & Auerbach, PA.

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New Poll: Nearly Two Thirds of Business Professionals Expect Uptick in Recovered Government Funds

by Nolan and Auerbach on January 27, 2010

Sixty-four percent of business professionals polled during a recent Deloitte webcast think the Fraud Enforcement and Recovery Act will be effective in increasing the total dollar amount the government will recover under the False Claims Act, according to a Jan. 27 Deloitte press release.

Respondents indicated their greatest concerns under the Fraud Enforcement and Recovery Act’s enforcement changes are: an expanded universe of companies potentially liable for FCA violations (24 percent); increased consequences of failing to return overpayments to the government (13 percent); extended whistleblower protections to non-employees (12 percent); and revived government ability to use Civil Investigative Demands (11 percent).

Approximately two-thirds (66 percent) of respondents were unaware that private qui tam plaintiffs — or whistleblowers — can bring suits under the FCA on behalf of the U.S. government against companies misusing government funds and keep a share of recovered funds.

Respondents expect that the financial services (44 percent) and health care and life sciences (23 percent) industries will see the highest increase in litigation resulting from increased Fraud Enforcement and Recovery Act, as well as FCA enforcement activity.

More than 800 business professionals from the banking and securities, consumer and industrial products, energy, resources and power, financial services, health care and life sciences, public sector technology, media and telecommunications and manufacturing industries responded to the online polling questions during an October 2009 Deloitte webcast.

For the full release, go to: http://www.prnewswire.com/news-releases/deloitte-poll-nearly-two-thirds-of-business-professionals-expect-uptick-in-recovered-government-funds-82784237.html.

For more information about qui tam law and health care fraud, contact Nolan and Auerbach, PA. at http://www.whistleblowerfirm.com/.

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Supreme Court Hears Argument to Decide Whether Fraud Allegations in State Reports are Public Disclosures

by Nolan and Auerbach on December 2, 2009

On November 30, the US Supreme Court heard oral argument in Graham County Soil & Water Conservation District v. United States ex rel. Wilson, No. 08-304 (“Graham County II”), concerning the “public disclosure” provision in Section 3730(e)(4)(A) of the False Claims Act. The public disclosure provision and the “original source” provision of the False Claims Act is intended to define the statutory bar against copycat whistleblowers who merely repeat what they have read or heard in public arenas, without having first-hand information of such information. The issue in Graham County was whether fraud publicly disclosed in a state (as opposed to a federal) administrative investigation or audit report are “publicly disclosed” for purposes of the FCA. Counsel for the Relator and for the the Government (from the Solicitor General’s Office) urged the Court to restrict the term “administrative to federal sources because of a “likelihood” that Congress believed that federal authorities would focus upon strictly federal sources. At oral argument, it seemed that the Justices were of the opinion that the statutory language was far from clear, and that the legislative history on the specific phrase is non-existent. Therefore it may be that the issue will be decided upon policy grounds taking into account the purposes of the False Claims Act as intended by its drafters.

For more information about qui tam law and health care fraud, contact Nolan and Auerbach, PA .

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SEC Ponders Cash Rewards for Whistleblowers

by Nolan and Auerbach on March 12, 2009

As Bernard Madoff was planning his guilty plea in a history-making fraud case, Securities and Exchange Commission Chairman Mary. L. Schapiro announced that the SEC is considering offering cash rewards to whistleblowers who expose financial wrongdoing, according to a March 12, 2009 Washington Times article. The practice of offering cash bounties to securities fraud whistleblowers would be similar to financial rewards given to people who help to expose insider-trading. Having this power, Schapiro said in the article, would enable the SEC to pursue cases more aggressively.

For the full article, go to: http://washingtontimes.com/news/2009/mar/12/sec-considers-cash-bounties-to-whistleblowers/. and for more info on ARRA HITECH ACT.

For more about qui tam whistleblower law, contact Nolan and Auerbach, PA.

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