[Congressional Record Volume 150, Number 134 (Friday, November 19, 2004)]
[Senate]
[Page S11646]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRASSLEY:
  S. 3018. 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; to the Committee 
on the Judiciary.
  Mr. GRASSLEY. Mr. President, today I am introducing a bill directing 
the Inspector General of the Department of Justice to submit semi-
annual reports regarding settlements relating to false claims and fraud 
against the United States.
  The False Claims Act, 31 U.S.C. 3729 et seq., is the Government's 
single most effective program for recouping money improperly obtained 
from the United States by false claims and fraud. Initially passed 
during the Civil War at President Abraham Lincoln's request to suppress 
fraud against the Union Army, the FCA was modernized and updated in 
1986. Since President Ronald Reagan signed the 1986 amendments into 
law, settlements and judgments in FCA cases have exceeded $13 billion. 
No other antifraud program of the federal government can match this 
result.
  Despite the significance of these results, the Congress does not have 
a way to evaluate the performance of the FCA program. While the 
program, which is overseen by the Civil Division of the Department of 
Justice, appears to be doing well, it is not known at this time how the 
program is performing as compared to its potential. What percentage of 
the various frauds perpetrated against the United States is recouped in 
False Claims Act cases? How effectively does DoJ capture the multiple 
damages and penalties provided for by the act? How quickly does DoJ 
move FCA cases? How effectively does DoJ use the tools provided to it 
by the FCA, such as civil investigative demands? How effectively does 
DoJ use relators and how well does it reward them?
  The purpose of this bill is to require the submission of the 
information that will allow Congress to evaluate of DoJ's performance 
in managing FCA cases. Thus, under this bill the Department of Justice 
will be required to describe its settlements of FCA cases. The report 
to Congress shall include a description of the estimated damages 
suffered by the United States, the amount recouped, the multiplier used 
to calculate the settlement amount, the criminal fines collected and 
whether the defendants were held liable in previous cases. The report 
will also inform Congress as to whether the defendants have been 
required to enter into corporate integrity agreements.
  In addition, in order to understand how the program is working, the 
Department of Justice will be required to inform Congress as to whether 
civil investigative demands were issued. The Department will also be 
required to provide certain information about the conduct of qui tam 
cases initiated by whistleblowers. For example, Congress will receive 
information about the length of time cases are under seal, whether 
whistleblowers (technically termed ``relators'') sought a fairness 
hearing regarding a settlement and what share of the settlement they 
received. The Congress would also receive information about whether the 
agency that suffered from the fraud involved participated in the 
settlement.
  In regard to cases involving Medicaid Fraud, the report will provide 
Congress with the details of how much money was returned to each state 
participating in the settlement. In a time when many States are 
struggling with their Medicaid budgets, the Congress needs to know how 
effectively DoJ is in suppressing Medicaid fraud and returning money to 
the States.
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