Bloomberg News

Fraud Settlements in U.S. Government Cases Exceed $3 Billion

December 20, 2011

(Updates with recoveries since January 2009 in fourth paragraph.)

Dec. 19 (Bloomberg) -- The amount the U.S. obtained in cases involving fraud against the government held steady at about $3 billion in fiscal year 2011, which ended Sept. 30.

The recoveries under the False Claims Act included $2.4 billion in fraud involving federal health care programs, Assistant Attorney General Tony West, who heads the Justice Department’s civil division, said at a briefing today in Washington.

Most of the cases resulting in recovered funds were brought to the government by whistle-blowers, according to the Justice Department. Whistle-blowers can pursue fraud claims under the act on behalf of the federal government and then share in any recovery.

The Justice Department has recovered $8.7 billion under the False Claims Act since January 2009, the largest-ever three-year total, West said.

--Editors: Justin Blum, Leslie Hoffecker

To contact the reporter on this story: Seth Stern in Washington at sstern14@bloomberg.net

To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net


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