Justice Department Recovers Over $3.5 Billion From False Claims Act Cases in Fiscal Year 2015
Justice Department Recovers Over
Recoveries Exceed
"The False Claims Act has again proven to be the government's most effective civil tool to ferret out fraud and return billions to taxpayer-funded programs," said Mizer."The recoveries announced today help preserve the integrity of vital government programs that provide health care to the elderly and low income families, ensure our national security and defense, and enable countless Americans to purchase homes."
Of the
The next largest recoveries were made in connection with government contracts.The government depends on contractors to feed, clothe, and equip our troops for combat; for the military aircraft, ships, and weapons systems that keep our nation secure; as well as to provide everything that is needed to fund myriad programs at home.Settlements and judgments in cases alleging false claims for payment under government contracts totaled
The False Claims Act is the government's primary civil remedy to redress false claims for government funds and property under government contracts, including national security and defense contracts, as well as under government programs as varied as
Most false claims actions are filed under the Act's whistleblower, or qui tam, provisions that allow individuals to file lawsuits alleging false claims on behalf of the government.If the government prevails in the action, the whistleblower, also known as the relator, receives up to 30percent of the recovery.Whistleblowers filed 638 qui tam suits in fiscal year 2015 and the department recovered
Health Care Fraud
Including this past year's
Two of the largest health care recoveries this past year were from
Hospitals were involved in nearly
Several settlements involved violations of the Stark Law.The Stark Statute prohibits certain financial relationships between hospitals and doctors that could improperly influence patient referrals.Services provided in violation of the Stark Statute are not reimbursable by
Claims involving the pharmaceutical industry accounted for
Skilled nursing homes and rehabilitation facilities have also been fertile ground for civil fraud and false claims actions.In the largest failure of care settlement with a skilled nursing home chain in the department's history,
Housing and Mortgage Fraud
The department has recovered over
The department also settled claims against
These recoveries are part of the broader enforcement efforts by
Government Contracts
Government contracts and federal procurement accounted for
In two other defense contract settlements,
In a pair of cases involving contracts with the
The department settled allegations that private contractor U.S. Investigations Services (http://www.doj.gov/opa/pr/us-investigations-services-agrees-forego-least-30-million-settle-false-claims-act-allegations) Inc. (USIS) violated the False Claims Act in performing a contract with the
Other Fraud Recoveries and Actions
Although health care, mortgage, and government contract fraud dominated fiscal year 2015 recoveries, the department has aggressively pursued fraud wherever it is found in federal programs.For example, the department recovered
The department also recovered
In other actions, the department filed lawsuits to recover funds disbursed under the Troubled Asset Relief Program (TARP) and payments made under contracts awarded to benefit disadvantaged populations identified under the
In a second action, the department filed suit against
These suits and settlements illustrate the diversity of cases pursued by the department and the department's quest to root out fraud and false claims against the government wherever it may be found.
Holding Individuals Accountable
On
In addition to those suits involving individuals described above, the department settled or filed suit against individuals in an array of cases.For example, Two Florida couples (http://www.doj.gov/opa/pr/two-florida-couples-agree-pay-113-million-resolve-allegations-they-accepted-kickbacks) agreed to pay
Outside the health care arena,
Recoveries in Whistleblower Suits
Of the
The number of lawsuits filed under the qui tam provisions of the Act has grown significantly since 1986, with 638 qui tam suits filed this past year.The growing number of qui tam lawsuits, particularly since 2009, has led to increased recoveries.From
"Many of the recoveries obtained under the False Claims Act result from courageous men and women who come forward to blow the whistle on fraud they are often uniquely positioned to expose," said Principal Deputy Assistant Attorney General Mizer.
In 1986, Senator
Principal Deputy Assistant Attorney General Mizer also expressed his deep appreciation for the many dedicated public servants who investigated and pursued these cases - the attorneys, investigators, auditors and other agency personnel throughout the
"The department's lawyers and staff, together with our law enforcement partners in federal and state governments, work tirelessly and often overcome daunting challenges to achieve these successes on behalf of the taxpayers," said Principal Deputy Assistant Attorney General Mizer.
The government's claims in the matters described above are allegations only; except where indicated, there has been no determination of liability.
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Civil Division (http://www.justice.gov/civil/)
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