Grassley-Authored Legislation Helps Justice Department Recover Nearly $2 Billion

Press Release

The Justice Department announced today that another $2 billion has been recovered this year for the U.S. Treasury thanks to whistleblower legislation sponsored in 1986 by Senator Chuck Grassley. The total amount recovered through the False Claims Act since the 1986 provisions were signed into law is now more than $24 billion.

"This law continues to be one of the most powerful tools we have in rooting out waste, fraud and abuse in the federal government," Grassley said. "The improvements we made earlier this year have enhanced this historic law so whistleblowers and federal taxpayers can continue to count on the law for years to come."

The amendments Grassley championed 23 years ago along with Rep. Howard Berman of California strengthened the Civil War-era False Claims Act which was originally signed into law by President Abraham Lincoln. The 1986 Grassley-Berman "qui tam" amendments empowered whistleblowers to file suit on behalf of the United States against those who fraudulently claim federal funds, including Medicare, Medicaid, contract payments, disaster assistance and other benefits, subsidies, grants and loans.

In 2008, Grassley and Senator Dick Durbin introduced legislation to further update the False Claims Act. Many provisions of this legislation were included in the Fraud Enforcement Recovery Act that was signed into law earlier this year by President Barack Obama. The legislation overturned several court decisions that threatened to limit the scope and applicability intended by Congress in the 1986 update. Grassley said the update helps ensure that no fraud will go unpunished because of legal loopholes.

Grassley said his amendments to the False Claims Act have empowered whistleblowers to help fight fraud against the government. Fraudulent claims by defense contractors during the 1980s prompted Grassley's initiative. Today the "qui tam" amendments recoup billions that would otherwise be lost to health care fraud.

The Justice Department said today that during the last fiscal year, the federal Treasury reclaimed $2.4 billion in settlements and judgments overall under the False Claims Act, bringing the total to $24 billion.

Source