Whistleblowers earned a record amount of money in Fiscal Year 2014 as they were paid $435 million in rewards by the Department of Justice. The $2.3 billion in health care fraud recoveries was also outpaced by $3.1 billion in federal funds recovered from housing and mortgage fraud in the financial industry. It is the first time in more than 10 years that the health care industry has not had the largest fraud settlements under the False Claims Act.
We owe a tremendous debt to whistleblowers. More than half of the money recovered by the Department of Justice was initially filed under the False Claims Act’s qui tam provisions. This trend should continue in the near future as more than 700 lawsuits were filed by whistleblowers for the second straight year.
Although the Justice Department receives fewer tips than the SEC, which has been averaging around 3000 a year, the amount recovered thanks to the False Claims Act still exceeds the Dodd-Frank law by a significant amount.
This is the first time that recoveries under the nation’s most successful law in the fight against fraud have exceeded $5 billion.
Here is a quick recap of the ten largest settlements of fiscal year 2014 highlighted by the DOJ in their press release:
Bank of America – $1.85 billion
Johnson & Johnson – $1.1 billion
JPMorgan Chase – $614 million
SunTrust Mortgage – $428 million
U.S. Bank – $200 million
Amedisys – $150 million
Omnicare – $116 million
Community Health Systems – $98.15 million
Halifax Hospital Medical Center – $85 million
BNP Paribas – $80 million
We will continue to update this blog post as we digest the information released. Here is the link to the DOJ press release.