DOJ recovers $5B in 2012 through False Claims Act

DOJ recovers $5B in 2012 through False Claims Act – FierceGovernment.

The Justice Department recovered a record $5 billion in fiscal 2012 from companies that filed false claims against the federal government. Healthcare fraud, contributing $3 billion, and housing and mortgage fraud, contributing $1.4 billion, were the largest pools of recovery funds, said DOJ in a Dec. 4 statement.

The False Claims Act is the government’s primary civil remedy to redress false claims and one of its strongest methods to protect the funding and reputation of programs like Medicare, said the the department.

According to DOJ, fraud against the government comes in a wide range of forms, including false claims for medicine and medical devices under federally insured health programs, homeowners that fall prey to abusive foreclosure practices and the armed forces being sold defective products.

The process of making these claims comes largely from the act’s whistleblower, or qui tam, provisions that allow private citizens to file suit on behalf of the government. If the United States wins in these cases, the whistleblower will receive up to 30 percent of the recovery. In fiscal 2012 DOJ recovered $3.3 billion through such suits and also saw a record 647 filed–some of which are to be decided in fiscal 2013.

Read more: DOJ recovers $5B in 2012 through False Claims Act – FierceGovernment

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