Firm Partner Comments on Record 2006 Qui Tam Recoveries
The United States Government recovered over $1.4 billion from qui tam settlements and judgments in the fiscal year 2006, according to a report issued by the Department of Justice.
The report, which surveys the period from October 1, 2005 to September 30, 2006, shows that qui tam recovery is up roughly $3 million from the previous fiscal year. Of this, over $197 million was awarded to Relators who brought qui tam cases on behalf of the government. The recoveries are part of a record year of recoupment for the federal government, which recovered more than $3.1 billion in settlements and judgments in cases alleging fraud.
The Department of Health and Human Services and the Department of Defense received the largest portions of the recovery, receiving $1.2 billion and $35 million in qui tam settlements and judgments respectively. The figures represent money recovered from a wide gamut of fraudulent practices, which range from off-label marketing of pharmaceuticals (which occurs when companies encourage doctors to promote drugs for purposes other than their proscribed uses) to defrauding the Federal Communications Commission by illegally participating in wireless spectrum license auctions.
According to FHWN partner and qui tam attorney David Haron, the statistics indicate that although the public is paying attention to fraud, there is still a long way to go. “The numbers show two things; number one, that fraud is still rampant in the field of government contracts twenty years after the False Claims Act was modified and expanded,” said Haron. “Number two, it shows that the DOJ is in partnership with private citizens seeking to stop fraud.”
However, Haron noted that the numbers show further fraud detection is needed. The federal Medicare and Medicaid budget is anywhere between $600 to $800 billion a year, and the federal government estimates that fraud accounts for anywhere from 5 to 20 percent of that amount. “So, when the government is recovering $1.7 billion when it should be recovering anywhere from $30 to $160 billion, $1.7 billion represents just a drop in the bucket,” he said.
For more information on qui tam recoveries, visit http://www.taf.org/stats-fy2006.pdf or the Taxpayers Against Fraud website at http://www.taf.org
The report, which surveys the period from October 1, 2005 to September 30, 2006, shows that qui tam recovery is up roughly $3 million from the previous fiscal year. Of this, over $197 million was awarded to Relators who brought qui tam cases on behalf of the government. The recoveries are part of a record year of recoupment for the federal government, which recovered more than $3.1 billion in settlements and judgments in cases alleging fraud.
The Department of Health and Human Services and the Department of Defense received the largest portions of the recovery, receiving $1.2 billion and $35 million in qui tam settlements and judgments respectively. The figures represent money recovered from a wide gamut of fraudulent practices, which range from off-label marketing of pharmaceuticals (which occurs when companies encourage doctors to promote drugs for purposes other than their proscribed uses) to defrauding the Federal Communications Commission by illegally participating in wireless spectrum license auctions.
According to FHWN partner and qui tam attorney David Haron, the statistics indicate that although the public is paying attention to fraud, there is still a long way to go. “The numbers show two things; number one, that fraud is still rampant in the field of government contracts twenty years after the False Claims Act was modified and expanded,” said Haron. “Number two, it shows that the DOJ is in partnership with private citizens seeking to stop fraud.”
However, Haron noted that the numbers show further fraud detection is needed. The federal Medicare and Medicaid budget is anywhere between $600 to $800 billion a year, and the federal government estimates that fraud accounts for anywhere from 5 to 20 percent of that amount. “So, when the government is recovering $1.7 billion when it should be recovering anywhere from $30 to $160 billion, $1.7 billion represents just a drop in the bucket,” he said.
For more information on qui tam recoveries, visit http://www.taf.org/stats-fy2006.pdf or the Taxpayers Against Fraud website at http://www.taf.org