The U.S. Department of Justice recently announced in a press release that it recovered $3. 8 billion in settlements and judgments from civil cases involving fraud against the government in the fiscal year ending Sept. 30, 2013. This dollar amount was the second largest annual recovery of its type in history, brings total recoveries under the False Claims Act since January 2009 to $ 17 billion, almost half the total recoveries since the Act was amended 27 years ago in 1986. Of the $3.8 billion the Justice Department recovered in fiscal year 2013, $2. 9 billion related to lawsuits filed under the False Claims Act. The Justice Department paid out more than $345 million to the courageous whistleblowers who exposed fraud and false claims submitted to the federal government. Health care fraud was the largest source of recoveries by the Justice Department. The cases in this area involved improper “off-label” marketing, the manufacture and distribution of adulterated drugs, and illegal kickbacks. Procurement fraud involving false claims and corruption involving government contracts was also a huge source of the monies obtained by the Justice Department. Lebau & Neuworth attorneys have also observed a sharp increase in false claims act cases involving for profit education and vocational training schools. Lebau & Neuworth has several active ongoing investigations in this growing area. Under the False Claims Act, only the first whistleblower can recover for reported fraud. Therefore, it is critically important that if you are whistleblower that you contact a lawyer asap and not disclose your knowledge to any other person.
