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Why Does the Government Keep Working With Fraudulent Companies?

February 8, 2011

There have been zero debarment actions in the past fifteen years against the government’s largest suppliers of goods and services, despite hundreds of billions of taxpayer dollars lost to fraud. In fact, many of the worst offenders continue to receive taxpayer money and continue to be awarded the largest government contracts. Why? See an exchange between the Legislative and the Executive branches of government on the subject below:

According to Senator Franken, as much as $220 billion may be lost each year due to Medicare fraud. DoJ efforts have been able to recoup as much as $2 billion of that. For every dollar spent on fraud investigations, DoJ collects $17 — an impressive return on investment. So why, then, are the budgets of U.S. Attorneys’ offices being cut across the board nationwide? Your guess is as good as mine.

To report Medicare fraud or other false claims against the government, contact Frohsin & Barger.

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