The Department of Justice (DOJ) recently announced that it had paid $392 million in whistleblower awards to individuals in the fiscal year ending on September 30, 2017. This enormous payout to ordinary citizens who made the courageous decision to come forward with information relating to fraud perpetrated against the federal government was made possible by the $3.7 billion that the DOJ was able to recover in FCA lawsuits during the same period.
Total FCA Recoveries Topped $3.7 Billion in FY 2017
Since 1986, the federal government has recovered over $56 billion in FCA lawsuits, and there is no sign of stopping on the part of the DOJ in aggressively going after government fraud via FCA actions. The $392 million in rewards is testament to the government’s continued interest in hearing from individuals who have previously undisclosed information relating to government fraud, including Medicare/Medicaid fraud, procurement fraud, and other forms of fraud that victimizes taxpayers.
In announcing the awards, Acting Assistant Attorney General Chad A. Readler said, “Because those who defraud the government often hide their misconduct from public view, whistleblowers are often essential to uncovering the truth…the Department’s recoveries this past year continue to reflect the valuable role that private parties can play in the government’s effort to combat false claims concerning government contracts and programs.”
The press release also pointed out that 669 new FCA claims were brought by private citizens in FY 2017, an average of 12 filed a week.
Healthcare Fraud the Leading Source of Whistleblower Rewards
The leading source of FCA recoveries in FY 2017 were those related to Medicare and Medicaid fraud in the healthcare industry, with $2.4 billion in recoveries coming from fraud perpetrated by pharmaceutical companies, hospitals, laboratories, and doctors.
Other significant sources of FCA recoveries related to procurement fraud (delivering substandard goods or services and/or submitting inflated claims to the government); housing and mortgage fraud, specifically submitting false insurance claims to the Federal Housing Authority (FHA) based on mortgage loans that were certified using illegal and/or substandard methods; and other false reimbursement and insurance claims submitted to the federal government under the American Recovery and Reinvestment Act of 2009.
Bring Your FCA Claim with Experienced Whistleblowing Attorneys You Can Trust
Our nation and its taxpayers relies on courageous insiders like you to come forward with information that can stop harmful government fraud. At Kreindler & Associates, our experienced FCA attorneys will work with you every step of the way to determine your appropriate course of action, protect you from retaliation, and collect your much-deserved reward. If you suspect that someone is committing fraud against the federal government, contact us today for an evaluation of your allegations.
