Justice Department Recovers Over $4.7 Billion From False Claims Act Cases in Fiscal Year 2016
Justice Department Recovers Over
Third Highest Annual Recovery in FCA History
"
Of the
The next largest recoveries came from the financial industry in the wake of the housing and mortgage fraud crisis.Settlements and judgments in cases alleging false claims in connection with federally insured residential mortgages totaled nearly
The False Claims Act is the government's primary civil remedy to redress false claims for government funds and property under government programs and contracts relating to such varied areas as health care, defense and national security, food safety and inspection, federally insured loans and mortgages, highway funds, small business contracts, agricultural subsidies, disaster assistance, and import tariffs.In 1986,
Most false claims actions are filed under those whistleblower, or qui tam, provisions.If the government prevails in the action, the whistleblower, also known as the relator, receives up to 30percent of the recovery.Whistleblowers filed 702 qui tam suits in fiscal year 2016, and the Department recovered
Health Care Fraud
The Department recovered
The largest recoveries this past year -
In another settlement against a drug company,
Hospitals and outpatient clinics accounted for
In the medical lab arena,
The nation's largest contract therapy provider paid
"These health care recoveries benefit vulnerable citizens in
Housing and Mortgage Fraud
The Department recovered more than
Wells Fargo and Freedom Mortgage both admitted that they had originated and endorsed residential mortgages as eligible for federal insurance by the
As part of the Wells Fargo settlement, the bank's vice president of Credit Risk - Quality Assurance,
These recoveries are part of the broader enforcement efforts by
Other Fraud Recoveries
Although health care and mortgage fraud dominated fiscal year 2016 recoveries, the Department has aggressively pursued fraud wherever it is found in federal programs and contracts. For example, the Department recovered
The government also continued to pursue a variety of procurement fraud matters.For example,
The Department had several settlements with for-profit schools that allegedly participated in illegal schemes to secure federal education funds.For example, the second largest for-profit education company in the country,
The Department also recovered
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
Cardiologist Dr.
Additional examples of individuals held personally liable for alleged false claims include
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 702 qui tam suits filed this past year - an average of 13.5 new cases every week.The growing number of qui tam lawsuits, particularly since 2009, has led to increased recoveries.From
"The qui tam provisions provide a valuable incentive to industry insiders who are uniquely positioned to expose fraud and false claims to come forward despite the risk to their careers," said Principal Deputy Assistant Attorney General Mizer."This takes courage, for which they are justly rewarded under the Act."
In 1986, Senator
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 Department's Civil Division and 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," said Mizer. "Their efforts continue to pay for themselves many times over, providing substantial benefits to the taxpayers."
The government's claims in the matters described above are allegations only; except where indicated, there has been no determination of liability.The numbers contained in this press release may differ slightly from the original press releases due to accrued interest.
1469
Civil Division (http://www.justice.gov/civil/)
Topic:
Financial Fraud
Healthcare Fraud
Mortgage Fraud
StopFraud
Updated


‘Tis the Season for Taxes?
Schakowsky Statement on new Obamacare Reports
Advisor News
- A rising retirement challenge: The license to spend
- Financial stress leaves less room for retirement saving
- Giving while you’re living: 3 frequently asked questions about gifting
- Helping clients prepare for one of their biggest retirement expenses
- Important year-end financial conversations every advisor must have
More Advisor NewsAnnuity News
- A rising retirement challenge: The license to spend
- What lower interest rates mean to annuity payouts
- AM Best downgrades A-Cap insurers amid financial and regulatory troubles
- Lawsuit claims Delaware Life hid billions in insurer-linked investments
- AM Best to Deliver Presentation at 2026 ACLI Annual Conference
More Annuity NewsHealth/Employee Benefits News
Life Insurance News