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April 24, 2014

DOJ Touts Active Enforcement of the False Claims Act in FY 2012

In a briefing earlier this week, Acting Associate Attorney General Tony West proudly reported that in FY 2012 the Department of Justice (DOJ) set a new single year record of nearly $5 billion in settlements and judgments under the False Claims Act (the “FCA”).  This enormous sum exceeded FY 2011 FCA recoveries by about $1.7 billion. The health care and mortgage industries were the two largest contributors to the recovery pool, with health care companies paying more than $3 billion.

Mr. West cited three activities that have enabled the DOJ to collect such large recoveries under the FCA: “aggressive use of a power statutory tool; creating strong partnerships; and supporting the civil frauds work of committed, hard-working attorneys and staff.”  

Mr. West also thanked a number of individuals for helping to shape and strength the FCA and specifically recognized that such results would not be possible without the Health Care Fraud and Enforcement Action Team (also known as “HEAT”).  

Not surprisingly, the new single year record for FCA recoveries was coupled with a new record for qui tam cases.  The DOJ reported that nearly 650 whistleblower actions were brought last year which resulted in $3.3 billion of the $5 billion recovered. 

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About the Author

Tara Swenson, Health Care, Attorney, Mintz Levin, Law Firm
Associate

Tara focuses on advising private and public health care services entities, including managed care organizations, pharmaceutical services providers such as PBMs, and integrated delivery systems, on mergers and acquisitions, joint ventures, and complex service arrangements. She works closely with Medicare Advantage Organizations (MAOs) and Medicare Part D Plan Sponsors, including Employer Group Waiver Plans (EGWPs), and first tier and downstream entities to address regulatory and compliance matters that arise as a result of participating in Medicare Parts C and D. Tara has experience...

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