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Sunday, July 20, 2008

Law 101 Continued: An Act Rarely Formed

Anyone ever heard of a False Claims Act?

It is a federal law that allows citizens, who are typically insiders of a particular organization, to file actions against potential wrongdoers in that organization. This has to do with qui tam and those who have knowledge restricted to others, as it is typically very secretive, as well as being poorly understood. These people reveal this information to federal prosecutors in hopes that they concur with thier suspicisions of this wrongdoing.

While it applies to all private and government entities, lately the focus seems to be those whistleblowers with intimate knowledge within or involved with health care industry and thier alleged fraudulent activities that have been known to shock and amaze others because of these activities not only increase the cost of healthcare to others, but possibly can harm thier health as well. Finally the cost is staggering such fraud approaches 70 billion dollars per year.

More to follow.

3 comments:

Anonymous said...

Addendum to the above post:

With the False Claims Act, there are social benefits with what many consider the most important tool in recovering goverment funds that were in effect stolen money by others of the government that would not be recovered otherwise.

Becka said...

Good words.

Anonymous said...

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