II 110th CONGRESS 1st Session S. 226 IN THE SENATE OF THE UNITED STATES January 9, 2007 Mr. Grassley introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs A BILL To direct the Inspector General of the Department of Justice to submit semi-annual reports regarding settlements relating to false claims and fraud against the Federal Government.

1.

False claims settlements

Section 8E of the Inspector General Act (5 U.S.C. App.) is amended by adding at the end the following: (e)(1)In preparing the semi-annual report under section 5, the Inspector General of the Department of Justice shall describe each settlement or compromise of any claim, suit, or other action entered into with the Department of Justice that— (A)relates to an alleged violation of section 1031 of title 18, United States Code, or section 3729 of title 31, United States Code (including all settlements of alternative remedies); and (B)results from a claim of damages in excess of $100,000. (2)The descriptions of each settlement or compromise required to be included in the semi-annual report under paragraph (1) shall include— (A)the overall amount of the settlement or compromise and the portions of the settlement attributed to various statutory authorities; (B)the amount of actual damages estimated to have been sustained and the minimum and maximum potential civil penalties incurred as a consequence of the defendants that is the subject of the settlement or compromise; (C)the basis for the estimate of damages sustained and the potential civil penalties incurred; (D)the amount of the settlement that represents damages and the multiplier or percentage of the actual damages applied in the actual settlement or compromise; (E)the amount of the settlement that represents civil penalties and the percentage of the potential penalty liability captured by the settlement or compromise; (F)the amount of the settlement that represents criminal fines and a statement of the basis for such fines; (G)the length of time involved from the filing of the complaint until the finalization of the settlement or compromise, including— (i)the date of the original filing of the complaint; (ii)the time the case remained under seal; (iii)the date upon which the Department of Justice determined whether or not to intervene in the case; and (iv)the date of settlement or compromise; (H)whether any of the defendants, or any divisions, subsidiaries, affiliates, or related entities, had previously entered into 1 or more settlements or compromises related to section 1031 of title 18, United States Code, or section 3730(b) of title 31, United States Code, and if so, the dates and monetary size of such settlements or compromises; (I)whether the defendant or any of its divisions, subsidiaries, affiliates, or related entities— (i)entered into a corporate integrity agreement related to the settlement or compromise; and (ii)had previously entered into 1 or more corporate integrity agreements related to section 3730(b) of title 31, United States Code, and if so, whether the previous corporate integrity agreements covered the conduct that is the subject of the settlement or compromise being reported on or similar conduct; (J)in the case of settlements involving medicaid, the amounts paid to the Federal Government and to each of the States participating in the settlement or compromise; (K)whether civil investigative demands were issued in process of investigating the case; (L)in qui tam actions, the percentage of the settlement amount awarded to the relator, and whether or not the relator requested a fairness hearing pertaining to the percentage received by the relator or the overall amount of the settlement; (M)the extent to which officers of the department or agency that was the victim of the loss resolved by the settlement or compromise participated in the settlement negotiations; and (N)the extent to which relators and their counsel participated in the settlement negotiations. .