Whistleblower Law Blog : Whistleblower Lawyer & Attorney : LaBovick Law Firm, Florida : Federal False Claims Act, Qui Tam

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S. 2041, has received support from leadership in both parties and has moved out of the Senate Committe. Leading the charge is:  Sen. Charles Grassley (R-IA), Senator Richard Durbin D-IL), Senator Patrick Leahy (D-VT), and Senator Arlen Specter (R-PA).

Proponents of S. 2041, note that the new bill clarifies the existing scope of False Claims Act liability, while closing the gap of a limited amout of loopholes for companies to use for stealing money from taxpayers. 

Specifically, S.2041 would:

• Remove the confusion over the statute of limitations period by adopting a straightforward 10-year period; 
• Provide strengthened employment protection for whistleblowers.
• Clarify that False Claims Act liability protects all federal funds;
• Explicitly clarifies that the False Claims Act applies to those who discover an overpayment and decide to pocket the funds
• Solely vest the Government with the power to dismiss whistleblower-filed False Claims Act lawsuits that are based on public allegations.

According to Jeb White, President of Taxpayers against Fraud, "This Bill has broad bi-partisan support. It's hard to be opposed to building a better rat trap to catch corporate cheats, chiselers, and con artists."

As mentioned here previously on the Whistleblower Law Blog,
highlights of the bill include:

• Makes corrections to 31 U.S.C § 3729 removing the requirement that false claims be presented to a government employee.
• Amends the FCA to clarify the dismissal of parasitic claims filed based upon publicly disclosed information.
• Clarifies that false or fraudulent claims against non-U.S. Government funds under the trust and control of the U.S. Government are subject to recovery under the FCA.
• Clarifies a split between Circuit Courts of Appeal as to when a government employee may act as a qui tam relator under the FCA. 
• Makes technical and clarifying amendments to the statute of limitations in FCA cases.

Click here to read the False Claims Act Corrections Legislation 2007.