The Department of Justice has achieved its third-highest annual recovery from False Claims Act cases, according to its annual report.
More than $4.7 billion in settlements and judgments from civil cases involving fraud and false claims against the government have been collected during the fiscal year ending Sept. 30, 2016. This brings the fiscal year average to nearly $4 billion since 2009, and total recovery to $31.3 billion.
A majority, $2.5 billion, of the federal losses recovered came from the health care industry. The next largest recovery included nearly $1.7 billion from cases alleging false claims in connection with federally insured residential mortgages. Additional recoveries came from false claims in the oil industry, as well as fraud in defense contracting, education and customs, among other sectors.
The False Claims Act serves as the government’s primary civil means to redress false claims for government funds and property under government programs and contracts. It was amended in 1986 to further incentivize whistleblowers to file lawsuits alleging false claims on behalf of the government; if the government prevails in the action, the whistleblower receives up to 30 percent of the recovery.
In 2016, whistleblowers filed 702 suits, from which DOJ recovered $2.9 billion and awarded $519 million to the individuals who exposed fraud and false claims.
“Congress amended the False Claims Act 30 years ago to give the government a more effective tool against false and fraudulent claims against federal programs,” said Principal Deputy Assistant Attorney General Benjamin Mizer, head of DOJ’s Civil Division.
“An astonishing 60 percent of those recoveries were obtained in the last eight years. The beneficiaries of these efforts include veterans, the elderly and low-income families who are insured by federal health care programs; families and students who are able to afford homes and go to college thanks to federally insured loans; and all of us who are protected by the government’s investment in national security and defense. In short, Americans across the country are healthier, enjoy a better quality of life and are safer because of our continuing success in protecting taxpayer funds from misuse.”
Detailed information on the fiscal 2016 recoveries can be
viewed on DOJ’s website.
