On July 25, a bipartisan group of senators proposed the False Claims Amendments Act of 2023, aiming to bolster the federal government’s primary line of defense against fraudulent activities. The bill, spearheaded by Chuck Grassley (R-IA), seeks to hold those responsible who knowingly deceive the government, particularly in cases involving the government’s continued payment for fraudsters. Co-sponsors of the bill include Senators Dick Durbin (D-IL), John Kennedy (R-LA), and Roger Wicker (R-MS).
The proposed amendment seeks to rectify the constraints imposed by the 2016 Supreme Court ruling in United Health Services v. United States ex rel. Escobar. The ruling created loopholes in the False Claims Act, allowing companies under fraud investigation to evade liability by arguing that continued government payments proved that the fraud was not “material” to the contract. The proposed bill is aimed at eliminating these vulnerabilities.
The bill proposes multiple mechanisms to fortify anti-fraud efforts. First and foremost, it asserts that continuous government payments should not automatically absolve companies under scrutiny of fraudulent charges. This move seeks to prevent companies from using ongoing government business to nullify serious violations, particularly when alternative reasons for continued payments exist.
Furthermore, the proposed 2023 amendment stipulates that whistleblower anti-retaliation provisions of the False Claims Act should extend to cover post-employment...
The lawsuit alleges the CCRB’s online database, 50-a.org, unfairly harms officers by listing serious accusations including sexual misconduct, racial profiling and making false official statements ...