The False Claims Act, first passed by congress at the time of the Civil War in response to government fraud in the purchase of war supplies, really hasn’t changed much over the years. While the False Claims Act is now directed toward substantive areas like health care, pharmaceuticals, and sophisticated government transportation contracts, the claims are no different than back when. Simply, unscrupulous persons and entities attempt to defraud the government (and the taxpayers) by selling inferior goods, by charging more than what has been agreed to by the government, and by providing goods or services that are not as represented in agreements with the government. The dramatic increase in government programs (Medicare, Medicaid, HUD, HHS) has resulted in a commensurate number of ways for the government to be defrauded within the scope of the False Claims Act. So while the modern claims under the act involve things like off-label sales of prescription pharmaceuticals, overcharges under the Medicare program, and phony claims for the transportation of military parts, that is the only difference from those that sold inferior gun powder, blended blankets instead of wool, and mules instead of horses to the Union army and the government.
Posts from March 2010.