WASHINGTON — The Justice Department announced this week that another $1.45 billion has been recovered for the U.S. Treasury thanks to whistleblower legislation sponsored in 1986 by Sen. Chuck Grassley. The total amount recovered through these provisions is now more than $20 billion.
The amendments Grassley championed more than 20 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 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 September, Grassley along with Senator Dick Durbin introduced legislation to update the False Claims Act. Grassley said the update was needed to respond to recent federal court decisions that threaten to limit the scope and applicability intended by Congress in the 1986 update. The Grassley/Durbin legislation is supported by the chairman and ranking member of the Senate Judiciary Committee.
Grassley said that 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 the initiative. Today the “qui tam” amendments also recoup billions that would otherwise be lost to health care fraud.
The Justice Department said today that during the last year, the federal Treasury reclaimed $2 billion in settlements and judgments overall under the False Claims Act. Of that $2 billion, $1.45 billion was associated with lawsuits initiated by whistleblowers.
“President Lincoln signed the original False Claims Act into law in 1863 to keep profiteers from bilking the Union Army. Since then, this law has remained one of the most powerful tools we have in rooting out waste, fraud and abuse in the federal government,” Grassley said. “With some further improvements, whistleblowers and federal taxpayers will be able to count on this important law for years to come.”