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The law originally enacted by President Abraham Lincoln during the Civil War to help the United States government recover fraudulently stolen government funds received a boost recently when President Barack Obama signed into law the first important amendments to the modern False Claims Act in the last 25 years.

The amendment eliminates the confusion created by the use of certain language in the 1986 amendments to the Act 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 amendments made clear that contractors who fraudulently retain overpayments may be prosecuted under the FCA

The legislation also contains provisions that help expedite the government's investigation of civil false claims.

The False Claims Act has resulted in the recovery of more than 24 billion dollars since 1986. Whistleblowers who have original, direct knowledge of fraud against the government may receive from 15% to as much as 30% of the government's recovery 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 send us an inquiry about a potential case, please feel free to Contact Us.