On February 22, the Department of Justice (DOJ) released their False Claims Act (FCA) statistics for the 2023 Fiscal Year. Over the course of the year, the DOJ recovered $2.68 billion in FCA settlements and judgements. $2.33 billion of this total came from qui tam whistleblower cases.
Under the FCA’s qui tam provisions, whistleblowers with knowledge of government contracting fraud may file lawsuits on behalf of the U.S. government. In successful suits, qui tam whistleblowers are entitled to 15-30% of the government’s recoveries.
“The statistics once again show that whistleblowing works,” says leading whistleblower attorney Stephen M. Kohn of Kohn, Kohn & Colapinto. “Whistleblowers are the government’s number one source of fraud detection.”
In FY 2023, whistleblowers received $349 million for their disclosures. Furthermore, 712 new qui tam suits were filed over the course of the year.
“We are grateful for the hard work and courage of whistleblowers who play a critical role in identifying fraud, often at substantial risk to themselves,” said Principal Deputy Assistant Attorney General Boynton. “Our efforts to ensure that public funds are spent properly continues to benefit greatly from their actions.”
Since the FCA was modernized in 1986, qui tam whistleblower suits have resulted in the recovery of over $52 billion from fraudsters.
“Year after year, whistleblowers recover billions of dollars for taxpayers,” continued Kohn. “These whistleblowers come forward at grave risk to themselves and their livelihoods. It is high time that the DOJ fully supports whistleblowers.”
On July 25, a bipartisan group of senators introduced the False Claims Amendments Act of 2023, which address a few technical loopholes undermining the success of the FCA. The bill is widely supported by whistleblower advocates.
“The False Claims Act is America’s number one fraud-fighting law,” said Kohn. “These amendments are urgently needed to ensure that whistleblowers can continue to play their key role in protecting taxpayers from corporate criminals.”
Kohn sees the passage of the False Claims Amendments Act as one of the seven most urgently needed whistleblower reforms. National Whistleblower Center (NWC), where Kohn serves as Chairman of the Board, has issued an Action Alert calling on Congress to pass the bill.
Join NWC in Taking Action:
Demand that Congress strengthen the False Claims Act
Further Reading:
False Claims Act Settlements and Judgments Exceed $2.68 Billion in Fiscal Year 2023
Bipartisan Legislation Unveiled to Strengthen False Claims Act