False Claims Act Correction Act (S.2041) Hearing Summary

I attended the Senate Judiciary Committee hearing this morning on the False Claims Act Correction Act of 2007.  Senators Leahy, Specter, Grassley and Durbin all attended intermittently, with Senator Grassley being the only member to attend the entire hearing. The witnesses were :

•    Michael Herz, a Deputy Assistant Attorney General representing  the Justice Department ;
•    Tina Gonter, a Qui Tam whistleblower;
•    John Clark, a former federal judge, now a Qui Tam attorney;
•    John Boese, a corporate attorney, representing the views of the U.S.  Chamber of Commerce.

Although each of the panelists had a distinctly different viewpoint on the False Claims Act, they did agree on one thing: that the FCA – having rooted out $20 billion in fraud since 1986, including $5 billion since 2005 -- is a highly effective fraud-fighting tool and it should be kept that way.  But what should be done to upgrade the law, if anything?

Mr. Herz and the Department of Justice expressed agreement with some of the reforms in S.2041 (such as increasing the statute of limitations to ten years), ...
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Senate Hearing on False Claims Correction Act This Wednesday

The Senate Committee on the Judiciary has scheduled a hearing this Wednesday on the False Claims Correction Act of 2007, S.2041 (discussed previously here). More details to follow...

UPDATE: Stephen M. Kohn, President of the National Whistleblower Center, has submitted written testimony to the committee to be entered into the record at tomorrow's hearing. View the testimony here.

West Virginia Lawmakers Still Don't Get It

In the wake of the deadly 2006 Sago mine disaster in West Virginia, angry miners came forward to say that the company that managed the mining company had blatantly sacrificed routine maintenance in favor of greater productivity. Why didn't these workers come forward sooner? Because they were afraid of losing their jobs. Even now, over 2 years after the January 2006 explosion that claimed 13 lives, lawmakers are dragging their feet on mine safety reform and specifically, whistleblower protections.


Last Friday, this West Virginia newspaper reported that the WV Senate had shot down a bill that would protect mine safety whistleblowers from retaliation when they report unsafe conditions in their mines. The lawmakers that voted against the bill were also spineless enough to request that their votes be anonymous -- fortunately for the voters of West Virginia, that request was not granted.  It is shocking to think that the WV legislature would turn their backs on the safety of the hardworking miners in their district.

Consumer Product Reform Bill Would Protect Whistleblowers

The Washington Post is reporting that Democrats and Republicans in the U.S. Senate have reached a compromise on legislation to reform the Consumer Product Safety Commission (CPSC). This essentially ensures that the legislation (S.2045) will pass the Senate within the next couple of months, and  then move on to the House of Representatives, where a companion bill is already in the works. This legislation was prompted by the rash of recalls over the past year, which peaked our awareness of unsafe consumer goods, including toys made with lead-based paint.


The Good News: S.2045, the Senate bill, includes a very strong provision to protect whistleblowers who work in manufacturing, distribution, or retailing of consumer products.  These employees would have the right to report retaliation to the Department of Labor, and to appeal that decision in federal court.


The Bad News: The House companion bill, which is currently stalled the House Committee on Energy and Commerce, does not include any whistleblower protections. Further, big business lobbyists have expressed vocal opposition to any bill that includes whistleblower protection, and they are fighting very hard behind the scenes to make sure that it is left out of the final language.


The National Whistleblower Center has issued an Action Alert on this issue, and is urging all concerned citizens to take part.

Click here to view the Alert>>