Berman Highlights $30 Billion in Savings Due to False Claims Act

[The information below was taken from a press release issued by Rep. Berman's office].

Rep. Howard Berman joined Attorney General Eric Holder and Senator Patrick Leahy Tuesday to commemorate the 25th anniversary of the False Claims Act Amendments of 1986. Since amended, the False Claims Act has been a tool to root out waste, fraud and abuse, enabling the Department of Justice (DOJ) to recoup over $30 billion in settlements and judgments in civil cases involving fraud against the government.

"The American people think we have a broken Congress. They assume that the only time our two parties can come together is under duress in the 11th hour to avert a government shutdown,” said Berman. "While it certainly isn’t the only example, the story of the False Claims Act and its success is a significant illustration of what can be done for the American people when we form bipartisan partnerships from the beginning of the legislative process.”     

Instrumental in securing House passage of the False Claims Act Amendments of 1986, Berman worked in partnership with Republican Senator Chuck Grassley and Senator Leahy to gain bipartisan support for the bill. Following improvements achieved in 2009 as a result of this enduring partnership, the Department of Justice has recovered over $8.7 billion for American taxpayers in the last three years alone. 

“On Capitol Hill, Congressman Berman was among those who launched a bipartisan, bicameral effort to amend the False Claims Act,” remarked Attorney General Holder. “Since the day that President Reagan signed these bipartisan amendments into law in 1986, their impact has been nothing short of profound.   Over the last quarter century, the Department of Justice has recovered more than $30 billion under the False Claims Act. Whistleblowers have filed nearly 8,000 actions–including a record high of 638 in the past year alone.”  

The law also served as a model for California’s False Claims Act, which passed in 1987 and has recovered over $600 million to the state.

“This law has served as a model in other areas of law—enlisting whistleblowers to fight fraud in new IRS and SEC provisions,” continued Rep. Berman.  “And, it’s been a model for 29 states, including California, which has recovered over $600 million since passage of its own False Claims Act in 1987.”

Also appearing at Tuesday's event with Berman and Holder was Assistant Attorney General for the Civil Division Tony West, and scheduled to attend was Republican Senator Charles Grassley.

To read more about the False Claims Act, click here.