New SEC Whistleblower Provisions Now in Effect
- August 12, 2011
- Federal False Claims Act
The new SEC whistleblower provisions take effect today. A new website is up and running regarding this program:
Author: Qui Tam
2010 IRS whistleblower report
- August 10, 2011
- Federal False Claims Act
The IRS gave its 2010 report to Congress on the Use of Section 7623, more commonly known as the IRS Whistleblower Law. Some of its highlights include an increase in staffing in the department from 17 to 21 during fiscal year 2010. Additionally, the IRS has invested in a new software program.
Mass Attorney General leads dissent against big bank settlement
- August 10, 2011
- Financial Industry
Massachusetts Attorney General Martha Coakley has announced that she will oppose the inclusion of MERS (Mortgage Electronic Registration System) issues in the $20 billion mortgage settlement deal proposed by the Department of Justice. The deal would release the banks from legal claims in state investigations and lawsuits. Despite pressure from the Department of Justice to sign on to the settlement,
New Attorney General takes the lead in New York
- August 10, 2011
- Financial Industry
The new attorney general in New York, Eric Schneiderman, is taking an aggressive lead in the inquiries by state officials concerning banks overcharging state and local pension funds for foreign-exchange currency transactions over the past decade. Schneiderman is investigating Bank of New York Mellon Corp.’s (“BNY Mellon”) charging of New York pension funds for thousands of transactions.
Lawsuit against Blackwater proceeds “by grace”
- August 10, 2011
- Federal False Claims Act
The jury trial in the civil lawsuit against Blackwater (now Xe Services), “hangs by a thread,” U.S. District Court Judge T.S. Ellis III stated, after throwing out several claims against the company. The case was initially brought in 2008 under the False Claims Act by Melan Davis, a former Blackwater employee.
Agility in more hot water over military food fraud claims
- August 10, 2011
- Federal False Claims Act, Government Contracts
A Kuwaiti food supplier could face charges of defrauding the U.S. government as federal prosecutors investigate claims against The Public Warehouse Company, also known as Agility. The alleged fraud is to the tune of $68 million, and involves a complex scheme of funding formulas used to defraud contracts to supply troops in Iraq,
KBR’s request to dismiss false claim lawsuit denied
- August 10, 2011
- Federal False Claims Act, Government Contracts
U.S. District Court Judge Royce Lamberth has ruled against the largest private contractor in Iraq and Afghanistan in a lawsuit brought by the U.S. government. Houston based contractor KBR Inc.’s request to dismiss a $100 million lawsuit involving false claims for private security in Iraq was denied on August 3.
Trends in Qui Tam False Claims Cases: On the Incline
- July 28, 2011
- Federal False Claims Act
The number of Qui Tam false claims cases has grown by double digits each year, since amendments were made to the False Claims Act (FCA) in 1986. Approximately 7,200 Qui Tam cases have been filed since 1987, according to the U.S. Department of Justice (DOJ). The major trend, in addition to the increase in filings,
False Claims Act Status Report: Qui Tam Cases and Recoveries are Growing at a Rapid Pace
- July 26, 2011
- Federal False Claims Act
Between January 2009 and June 2011, the DOJ recovered more than $7.3 billion in civil settlements and judgments under the False Claims Act. Assistant Attorney General for the Civil Division Tony West stated that the DOJ “has never been more aggressive—or more successful—in the anti-fraud battle as it has in the last two years.” State recoveries are also reaching record-highs and looking to pass or amend aggressive false claims statutes patterned after the FCA.
Home Depot Sued for False Claims in Violation of the Buy American Act
- July 06, 2011
- Federal False Claims Act
Home Depot was sued for false claims for selling Chinese goods to the federal government in violation of the Buy American Act. That act requires all materials used in construction of public projects to originate in the United States or “designated countries.” GSA contracts with Home Depot authorize government agencies to purchase thousands of products from Home Depot’s designated website while many of the products on the website are actually manufactured in China and other non-designated countries.