The False Claims Act has been continuously in effect for over 150 years since being enacted by President Lincoln during the Civil War, but an unbelievable 60% of total financial recoveries collected by the federal government have been made in just the last 8 years. Furthermore, the Department of Justice (DOJ) brought in $4.7 billion in recovery in 2016 alone, making it the third highest year ever for recoveries. And yet, that $4.7 billion is just above the average for the last 8 years in which $31.3 billion has been recovered by the federal government in FCA claims, or around $3.9 billion per year. This suggests that the federal government will persist in its efforts to reclaim funds from wrongdoers who have defrauded the government through defense, Medicare/Medicaid, and other contracts by joining in FCA suits brought by individual whistleblowers.
Breaking Down the $4.7 Billion
More than half of the FCA recoveries last year were related to the healthcare industry, with $2.5 billion recovered from settlements and verdicts with nursing homes, doctors, drug companies, medical device companies, hospitals, and laboratories. This is not surprising giving the massive expenditures made on Medicare programs and the demonstrated tactics of players in the healthcare industry to defraud the government through overbilling and similar techniques. Many more millions were recovered on behalf of state Medicaid programs.
Coming in behind the healthcare industry was the $1.7 billion recovered from the financial industry for false claims made in connection with federally insured residential mortgage programs.
The Benefits of Bringing an FCA Claim
Private citizens who bring successful FCA claims are generally rewarded with 15-25% of the money recovered by the federal government, meaning many of these plaintiffs have received very lucrative rewards for their efforts this year.
In addition to the reward provided to FCA whistleblowers, there is also the common good that arises from bringing fraud to light. As Benjamin Mizer, head of the DOJ’s Civil Division stated in announcing the total haul, “The beneficiaries of these efforts include veterans, the elderly, and low-income families who are insured by federal health care programs; families and students who are able to afford homes and go to college thanks to federally insured loans; and all of us who are protected by the government’s investment in national security and defense.”
Bringing an FCA Claim With an Experienced FCA Attorney
FCA lawsuits are often long affairs and require intense and prolonged legal efforts. Given the societal benefits and the potential huge financial rewards, they can be nonetheless well worth the effort. At Kreindler & Associates, our focus is on bringing whistleblower claims and we will work with you to evaluate your potential case and guide you through the entire FCA process. An FCA claim is only valid if it has not previously been initiated by another plaintiff or the government, so it is in your interest to speak with an experienced FCA attorney as soon as possible. Contact us today for an evaluation of your allegations.
