$2 Billion Recovered by the Department of Justice in 2007

In 2007 the Justice Department recovered $2 Billion and more than $20 Billion since 1986 due to the Fraud and False Claims Acts. “It also attests to the fortitude of Whistleblowers who report fraud...” stated Peter D. Keisler, Acting Attorney General U.S. Department of Justice.

The 1986 amendments to the False Claims act, which were sponsored by Senator Charles Grassley of Iowa and Representative Howard Berman of California, are the key factor used to fight fraud against the government. This important legislation arms ordinary citizens with the courage and protection to “blow the whistle” on those defrauding the government.

The False Claims Act’s qui tam provisions allow Whistleblowers authorization to file suit against those who claim federal funds fraudulently. These cases include Medicare, Medicaid. Disaster Assistance Loans, Insurance fraud, etc. The Whistleblower is able to recover awards from 15% to 25% if successful with United States intervention in a qui tam action or up to 30% if the Whistleblower pursues the action alone.

With the inception of the Tax Whistleblower Reward Program in 2006, Whistleblowers have come forward with tax issues and multiple claims have since been filed. As yet no rewards have been awarded and it looks as though they may be a few years down the road before they reach the Whistleblowers hands. However with the proposed Treas. Reg. § 301.7623-1 on the table, progress is being made and hopefully this will speed up the litigation process and soon the Tax Whistleblower awards of up to 30% of tax collected will be flowing down the channel.