HR Administration

Data Bank Focus: Government Fraud

By Betsy Shepherd

Apr. 16, 2012

In January, the U.S. Justice Department celebrated the 25th anniversary of the 1986 amendment to the False Claims Act. The 1986 amendment allows the government to seek triple the amount of damages for fraud perpetrated by federal contractors, suppliers and service providers. The amendment also increases the incentives for whistle-blowers under its qui tam provisions. These provisions allow citizens to sue on behalf of the government and be paid a percentage of the recovery.

Since those changes were enacted, the Justice Department has recovered more than $30 billion in taxpayers’ money paid on fraudulent claims, with more than $500 million going to the individuals (known as “relators”) who blew the whistle on these crimes.

Workforce Management, April 2012, p. 19

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