The U.S. Department of Justice secured $2.4 billion in settlements and judgments in cases involving fraud against the government in the fiscal year ending Sept. 30, 2009, according to a DOJ news release.
This represents the second largest annual recovery of civil fraud claims in history, and brings total recoveries since 1986, when Congress substantially strengthened the civil False Claims Act, to more than $24 billion, according to the release. The 1986 amendments reduced the barriers to citizens suing on behalf of the government and increased the incentives to filing such suits.
Of the $2.4 billion in settlements and judgments obtained in FY 2009, nearly $2 billion was recovered in lawsuits filed under the False Claims Act's qui tam provisions, which authorize private persons to file suit on behalf of the United States against those who have falsely or fraudulently claim federal funds.
False claims cases cover fraud against any federally-funded program, including Medicare and Medicaid, defense contracts, federally-insured mortgages and other federal housing programs, disaster assistance loans and agriculture subsidies.
In fiscal year 2009, healthcare fraud recoveries reached $1.6 billion, two-thirds of the year's total. The Department of Health and Human Services reaped the biggest recoveries, largely attributable to its Medicare and Medicaid programs.
The largest healthcare recoveries came from the pharmaceutical and medical device industries, which accounted for $866.7 million in settlements, including Aventis Pharmaceuticals, Bayer HealthCare, Eli Lilly & Company and Quest Diagnostics and its subsidiary, Nichols Institute Diagnostics Inc. In addition to federal recoveries, these pharmaceutical and medical device fraud cases returned $402 million to state Medicaid programs.
Persons who knowingly make false claims for federal funds are liable for three times the government's loss plus a civil penalty of $5,500 to $11,000 for each claim. Whistleblowers recover 15 to 25 percent of the proceeds of a successful suit if the United States intervenes in the qui tam action, and up to 30 percent if the United States declines and the whisteblower pursues the action alone. In fiscal year 2009, whistleblowers were awarded $255 million, according to the release.
Read the DOJ's release on FY 2009 False Claims recoveries.
This represents the second largest annual recovery of civil fraud claims in history, and brings total recoveries since 1986, when Congress substantially strengthened the civil False Claims Act, to more than $24 billion, according to the release. The 1986 amendments reduced the barriers to citizens suing on behalf of the government and increased the incentives to filing such suits.
Of the $2.4 billion in settlements and judgments obtained in FY 2009, nearly $2 billion was recovered in lawsuits filed under the False Claims Act's qui tam provisions, which authorize private persons to file suit on behalf of the United States against those who have falsely or fraudulently claim federal funds.
False claims cases cover fraud against any federally-funded program, including Medicare and Medicaid, defense contracts, federally-insured mortgages and other federal housing programs, disaster assistance loans and agriculture subsidies.
In fiscal year 2009, healthcare fraud recoveries reached $1.6 billion, two-thirds of the year's total. The Department of Health and Human Services reaped the biggest recoveries, largely attributable to its Medicare and Medicaid programs.
The largest healthcare recoveries came from the pharmaceutical and medical device industries, which accounted for $866.7 million in settlements, including Aventis Pharmaceuticals, Bayer HealthCare, Eli Lilly & Company and Quest Diagnostics and its subsidiary, Nichols Institute Diagnostics Inc. In addition to federal recoveries, these pharmaceutical and medical device fraud cases returned $402 million to state Medicaid programs.
Persons who knowingly make false claims for federal funds are liable for three times the government's loss plus a civil penalty of $5,500 to $11,000 for each claim. Whistleblowers recover 15 to 25 percent of the proceeds of a successful suit if the United States intervenes in the qui tam action, and up to 30 percent if the United States declines and the whisteblower pursues the action alone. In fiscal year 2009, whistleblowers were awarded $255 million, according to the release.
Read the DOJ's release on FY 2009 False Claims recoveries.