For the second straight year, the United States Department of Justice has recovered over $3 billion in settlements under the False Claims Act. Whistleblowers continue to be invaluable in assisting the government in recovering the proceeds of ill-gotten gains. In 2011, whistleblower lawsuits resulted in a bulk of the $3 billion recovered by the government. Tony West, the Assistant Attorney General of the Civil Division, stated that "We are tremendously grateful for whistleblowers who have brought fraud allegations to the government's attention and assisted us in this public-private partnership to fight fraud."
Not surprisingly, $2.4 billion of the funds recovered resulted from fraud committed against federal healthcare programs, including Medicare and Medicaid. According to the Department of Justice, the pharmaceutical industry was the source of the largest recoveries, including GlaxoSmithKline which paid $750 million to settle criminal and civil claims for systemic current Good Manufacturing Practice violations at its now-closed plant in Cidra, Puerto Rico. Settlements involving the pharmaceutical industry totaled $2.2 billion this past year.
Since the False Claims Act was amended in 1986, the government has recovered in excess of $30 billion. Senator Chuck Grassley (R-Iowa) sponsored the amendments. On December 11, 2011, Senator Grassley stated that the FCA "proves to be the most powerful tool in rooting out fraud against the federal treasury." He went on to say that "not only does the law help recover billions of taxpayer dollars, but it deters untold more, and is a real savior for taxpayers tired of Washington ways. The whistleblowers who bring these cases to light know the secrets hidden by those who are ripping off federal taxpayers."
Under the False Claims Act, whistleblowers are entitled to receive between 15 and 25 percent of the amount recovered by the government. If you have information regarding fraudulent practices affecting government programs, contact Andrew M. Beato, an experienced whistleblower attorney with the law firm of Stein, Mitchell & Muse in Washington, D.C., to memorialize your claim.
