Whistleblower-initiated cases brought in $2.8 billion of the total recovery. Health care, banking, and mortgage fraud accounted for the majority of the recoveries, with additional recoveries stemming from cases against the for-profit education and defense contracting industry.
The Department of Justice announced Wednesday that The Boeing Company will pay $18 million to settle allegations that the company improperly charged labor costs under contracts with the Air Force for the maintenance and repair of C-17 Globemaster aircraft at Boeing’s Long Beach Depot Center in Long Beach, California.
The first settlement under the program was announced on March 30, 2015. The program settled thirty-nine cases in FY2015 totaling some $342 million in penalties collected.
The Justice Department recently announced that Walter Investment Management Corp. (WIMC) will pay nearly $30 million to settle allegations that WIMC, and a number of its subsidiaries, violated the False Claims Act in connection with their participation in the Department of Housing and Urban Development’s (HUD’s) Home Equity Conversion Mortgages program, which insures “reverse” mortgage loans.
“Because of the department’s continuing efforts to root out offshore tax evasion, Swiss banks are operating much differently today than they did just a few years ago, and the department’s Swiss Banking Program is a big part of that change,” said Acting Deputy Attorney General Sally Quillian Yates after DoJ announced the program's first settlement.
The Department of Justice announced that KMART Corp. (Kmart) will pay $1.4 million to resolve allegations that it violated the False Claims Act by using drug manufacturer coupons and gasoline discounts as improper Medicare beneficiary inducements.
"We reject the Government’s argument for several reasons. First, the Government’s interpretation is contrary to the explicit language of the statute. The Court reads the statute to hold that the only measuring stick is the contribution of the relator. If Congress had intended limitations, like in the case of large awards, it would have explicitly included them within the statutory framework of the FCA. Congress’ silence on this issue compels rejection of the Government’s argument. Second, the Government has failed to include any legal precedent affirming this argument, and thorough research by this Court has failed to unearth any such support."
The process of globalization compresses and shapes every facet of the modern world: economic, political, technological, and social.
The law is not exempt.
Food for thought for the next time you read a headline declaiming, “The Era of Big Settlements is Over!”
The U.S. Department of Justice obtained a record $5.69 billion in settlements and judgments from civil cases involving fraud and false claims against the government in the fiscal year ending September 30, Acting Associate Attorney General Stuart F. Delery and Acting Assistant Attorney General Joyce R. Branda for the Civil Division announced today.