Posted on June 3, 2009 by Robert Cochran

New Legislation Expands the False Claims Act

On May 20, 2009, President Obama signed into law the Fraud Enforcement and Recovery Act of 2009 (the Act). Although the Act targets economic stimulus fraud in particular, it also expands the scope of the federal False Claims Act (FCA). The amendments to the FCA will expand the scope of FCA liability, provide for new investigative tools, and make it easier for private plaintiffs (known as qui tam relators) to file FCA lawsuits on behalf of the government. In particular, the FCA has been expanded to impose liability for the the knowing and improper retention of "overpayments."

The amendments to the FCA are located in Section 4.

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