FCA Matters: Department of Justice Touts Record Recoveries in False Claims Act Cases
February 19, 2015
The U.S. Department of Justice collected a record $5.69 billion through settlements and judgments in False Claims Act cases during the fiscal year ending September 30, 2014, according to a recent announcement by DOJ officials. This is the first time the Department has exceeded $5 billion in False Claims Act recoveries, and brings the total amount recovered since the FCA was amended in January 2009 to $22.75 billion.
Collections in 2014 were bolstered by an unprecedented $3.1 billion in recoveries from banks and other financial institutions charged with making false claims for federally-insured mortgages and loans. The DOJ reported that another $2.3 billion was recovered in settlements or judgments of false claims allegations involving federal health care programs such as Medicare and Medicaid.
Of the $5.69 billion recovered in fiscal year 2014, nearly $3 billion came from qui tam actions filed by private citizens on behalf of the government. DOJ also reported that from January 2009 to September 30, 2014, more than $2.47 billion of the $5.69 billion recovered was awarded to qui tam whistleblowers. In sum, this report underscores once again the major role played by whistleblowers since the Fraud Enforcement & Recovery Act amendments were passed in 2009 and should serve as a timely reminder to conduct periodic audits of your organization’s anti-fraud compliance program to ensure that it is visible, active, and accountable.