Nearly $4 Billion Recovered for Taxpayers in 2015 Whistleblower Cases

January 11, 2016

For the 4th year in a row, the Department of Justice recovered more than $3.5 billion in settlements and judgements in False Claims Act cases for fraud against the government.

“The False Claims Act has again proven to be the government’s most effective civil tool to ferret out fraud and return billions to taxpayer-funded programs,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “The recoveries announced today help preserve the integrity of vital government programs that provide health care to the elderly and low income families, ensure our national security and defense, and enable countless Americans to purchase homes.”

These recoveries are often made possible by private individuals who were employees of the companies responsible and had inside information on the fraud taking place. These so-called relators come forward to the government and file suit under the False Claims Act. They are entitled to a percentage of the recovery returned to taxpayers and are generally represented by whistleblower law firms.

Taxpayers Against Fraud, a non-profit which works to works to educate the public about whistleblower programs, noted that a higher percentage of successful cases were filed by whistleblowers in 2015.

  • Of the $3.58 billion collected under the federal False Claims Act in FY 2015, a record $ 2.91 billion was awarded in whistleblower-initiated cases.
  • Whistleblowers were awarded a record $597.6 million for their contribution in helping recover this $2.91 billion dollars.
  • Of the total amount awarded to whistleblowers, $334.6 million was awarded to relators in declined cases –  a record amount.

Patrick Burns, co-Executive Director of Taxpayers Against Fraud Education Fund, noted that the law was working exactly as it should.

“Government will never have all the resources it needs to find and pursue every act of fraud. That’s why the False Claims Act incentivizes whistleblowers to come forward with non-public information, and why it allows private lawyers, working for those whistleblowers, to pursue fraud cases on the government’s behalf,” said Burns.