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Bi-Partisan New False Claims Act Provisions

June 2, 2009

The federal Fraud Enforcement and Recovery Act — which amends the False Claims Act — was a “very bipartisan bill,” according to Republican Senator Charles Grassley.  “I didn’t support the majority of the bailout spending,” said Sen. Grassley.  “But it’s a fact.  So now that taxpayers are on the hook for a tab, we need to do whatever we can to provide proper safeguards to protect the taxpayers’ money.”  The bill passed both the House and the Senate with widespread bi-partisan support and was signed into law by the President at the end of May.

Grassley wrote the 1986 False Claims Act Amendments that strengthened the fraud-fighting law originally enacted during the Civil War. But the False Claims Act has suffered severe judicial limitation through “recent court cases undermining the provisions enacted in 1986,” said Grassley.  The Federal Enforcement and Recovery Act “restore[s] the teeth” and the “original intent of Congress” to an invaluable law has helped recover more than $22 billion that would otherwise have been lost to fraud.

To report fraud or learn more about the False Claims Act, contact Frohsin & Barger.

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