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Wednesday, December 05, 2012

Whistleblowers Lead To $3.3 Billion In US Recovery

Whistleblower tips led to a record $3.3 billion recovered by the Justice Department this past year in cases involving frauds against the government, officials said Tuesday.

Such cases were brought under the False Claims Act, a law covering frauds against the government that includes a provision allowing private citizens to file lawsuits on the government's behalf. These citizens are then entitled to collect a portion of any fines or penalties collected in their cases.


Overall, the government recovered nearly $5 billion in False Claims Act cases for the fiscal year ended Sept. 30, including $3 billion stemming from health care fraud and $911 million paid by mortgage servicers as part of the $26 billion foreclosure settlement, the Justice Department said.

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