On February 21, the U.S. Supreme Court issued a unanimous decision in the False Claims Act (FCA) case Wisconsin Bell Inc. v. U.S. ex rel. Heath, ruling that a qui tamwhistleblower suit alleging that Wisconsin Bell defrauded the Federal Communications Commission’s E-rate program may proceed because there are false claims at issue.
“This is an important victory to uphold the whistleblower (or qui tam) provisions of the False Claims Act,” says whistleblower attorney David Colapinto, founding partner of Kohn, Kohn & Colapinto. “Fraudsters should be on notice that whenever they commit fraud against a government program enacted by Congress, whistleblowers are empowered to report and pursue fraud cases to protect the taxpayers and consumers who depend on federal programs like the E-Rate program.”
“The FCA is the most important anti-fraud tool on the books to fight against unscrupulous government contractors and others who overcharge and steal from federal programs,” adds Colapinto.
In the case, Wisconsin Bell argued that a qui tam whistleblower suit filed against it could not proceed because the E-rate program, a Congressionally-mandated program to help certain schools and libraries afford internet and telecommunications, is administered by a private nonprofit organization and is funded by government-mandated payments made by private telecommunications carriers into the Universal Service Fund (USF). Thus, according to Wisconsin Bell, only private funds were at issue and...
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