Qui Tam News: President Obama Signs FCA Amendments into Law
The law originally enacted by President Abraham Lincoln during the Civil War to help the United States government recover fraudulently obtained government funds received a boost recently when President Barack Obama signed into law the first significant amendment to the False Claims Act in 25 years.
The law eliminates the confusion created by certain language in the 1986 amendment to the FCA that was construed to limit the claims of whistleblowers against subcontractors and others involved in fraud against the government who were downstream from the main government contractor. At the same time, the amendment makes clear that companies that fraudulently retain government overpayments may be prosecuted under the False Claims Act.
The new legislation also contains important provisions that help to strengthen the government's ability to investigate the complaints of whistleblowers.
The False Claims Act has helped the United States recover more than 24 billion dollars since 1986. Whistleblowers, ordinary citizens with original, direct knowledge of fraud against the government, may receive from 15% to as much as 30% of the amount the government recovers as a reward for helping their country in the fight against fraud. See FAQ's - False Claims Act for more information about the False Claims Act. If you would like to inquire about a potential case, we welcome your inquiry, Contact Us.