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

In a recent Supreme Court decision today, in the qui tam suit, Allison Engine Co. v. US ex. Rel Saunders,  Supreme Court Justice Alito writes in his opinion that  "it is not enough under §3729(a)(3) for a plaintiff to show that the alleged conspirators agreed upon a fraud scheme that had the effect of causing a private entity to make payments using money obtained from the Government. Instead, it must be shown that they intended “to defraud the Government.” Where their alleged conduct involved the making of a false statement, it need not be shown that they intended the statement to be presented directly to the Government, but it must be established that they agreed that the statement would have a material effect on the Government’s decision to pay the false or fraudulent claim. Pp 8 -10." 471 F. 3d 610, was vacated and remanded. This was a unanimous decision for the Court.

According to Stephen M. Kohn, the President of the National Whistleblower Center,  the Court laid the responsibility for fixing the law directly on Congress: 'Had congress intended' the False Claims Act to 'apply to any one who conspired to defraud' the government 'it would have so provided."

Does this give conspirators planning to defraud the government, a  " free pass"?  Let's hope this is not the case. Maybe this uncertainty will light a fire under Congress to pass the False Claims Correction Act. 

Note to Whistleblowers: Do not let this ruling discourage you from bringing qui tam cases. This decision is only a minor set back.  The rules of the game may have changed a little, however,  the strategy to bring those guilty of defrauding the government to justice, has become more interesting.

Click here to read entire Supreme Court Opinion for Allison Engine Co. v. US ex. Rel Saunders

• Print
• Comments
• Trackbacks

The National Whistleblower Center requests your help in sending a message to your Representative re: The Consumer Product Safety Commission reform bill (S.2045) Whistleblower protections.

The CPSC reform bill (S.2045) needs to provide vital protections for honest employees who report safety violations--such as toxins in toothpaste and poisonous lead in our children's toys. Without these protections, whistleblowers may not come forward to report dangers of products until it is too late. 

Lobbyists, such as the National Association of Manufacturers, have declared war on the whistleblower provisions of the bill.  The House version of the CPSC reform bill does not include whistleblower protections.

Clickhere to find out how you can take action and join the Whistleblower Center in this valiant fight. to encourage Representatives to support families and not large businesses in this legislation. There have easy to use templates at this site for sending messages to Representatives. 

• Print
• Comments
• Trackbacks (1)

Yesterday, the Senate Committee on Commerce, Science & Transportation voted to approve S. 2045, The Consumer Product Safety Commission (CPSC) Reform Act of 2007. This bill will revamp the  federal standards on consumer products and will incorporate whistleblower language that protects employees who speak out on consumer safety violations against their employers. Once passed, this new law would prohibit manufacturers, distributors, and retailers from retaliating against employees who report violations of consumer safety laws.

Stephen M. Kohn, President of the National Whistleblower Center, states "Whistleblower protections for employees who report violations of consumer product safety standards are absolutely critical. If courageous employees can't report violations without fear of retribution, especially in overseas factories, then the American people may not know about dangerous or defective products until it is too late".

Leaders and supporters of the Government Accountability Project (GAP) are among the group of supporters of  S. 2045, the Consumer Product Safety Commission Reform Act of 2007. The GAP Legislative Director, Adam Miles, adds that "With the recent import scares and the holiday season approaching, adding consumer product safety protections to this list couldn't be happening at a better time." 

Mr. Miles and Mr. Kohn are absolutely correct in their assessment of the Bill. It is great to know that we have consumer and employee rights champions on such important issues.  There are two key Senators that need to be acknowledged for their efforts in this legislation,  Senator Claire McCaskill (D-MO) and Sen. Mark Pryor (D-AR). Their tireless and valiant efforts will help make a difference in the improvement in the CPSC and provide safety measures to protect Whistleblowers. According to Senator McCaskill,  “We may get the lead out of the whistles, but if we don’t protect the people that are blowing the whistles, we’re not going to get the information we need”.

The next step is to get the S. 2045, the Consumer Product Safety Commission Reform Act of 2007 passed by the entire Senate.  All eyes are on the Senate.

• Print
• Comments
• Trackbacks

Let your voice be heard by your Senator. Choose Kids Over Big Business! 

Please stand up and be counted by contacting your local Senator about this important issue. We want to share the recent letter by the Public Affairs Director of the National  Whistlebower Center urging concerned citizens to contact their local Senator. 

Click Here to find your local Senator

Would you want to know if a cargo ship full of lead-laden toys or toxic toothpaste were heading for U.S. ports and our stores? Protecting our children from defective or dangerous products depends on information provided by whistleblowers. Under current laws, a manufacturing employee who reports unsafe products is not protected from employer retaliation. A bill in the Senate, S. 2045, would protect these whistleblowers--but Big Business has declared war on the new law, and is fighting for the power to fire honest employees at will.

As you are well aware, defective and dangerous products have sickened our children and put us all at risk. The Senate Commerce Committee is set to vote on this legislation next Tuesday, October 30, and lobbyists (such as the National Association of Manufacturers) are lining up to voice their fervent opposition.

Perhaps the manufacturers should take a look at a new study conducted by Price Waterhouse which showed, once again, that whistleblowers are a company's #1 resource for upholding high standards. The study, available at http://www.pwc.com/crimesurvey/index.html, which included 5,400 corporate executives in 40 countries found that whistleblowers are over twice as effective as the companies' own auditors.

Big Business has fired the first shots; we must Fight Back. Whistleblower protections for manufacturing employees are indispensable, especially for those overseas. Without one honest manager, auditor or inspector in those far-flung factories who is willing to speak up without fear of retribution, we may not know about a defective or dangerous product until it is too late.

The bill is S. 2045, and it is being voted on by the Senate Commerce Committee Tuesday, October 30. We can win this fight, but not without an overwhelming response from determined citizens like you.

Sincerely,

Marshall Chriswell
Public Affairs Director
National Whistleblower Center

• Print
• Comments
• Trackbacks