Monday, May 11, 2009

Congress Mulls Significant Expansion of the False Claims Act

AFI: Important to keep in mind as you design your Red Flags Rule program.

From: Metropolitan Corporate Counsel

Originally a Civil War-era statute, the False Claims Act (FCA) was significantly revised in 1986 to protect whistle-blowers who disclose activities at their companies that may defraud the government.

Now this unfamiliar act is at the forefront again as federal bailout money is injected into the economy with a need for greater visibility.

Every entity that does business with the federal government (or does business with another company that does business with the federal government) is potentially the target of an FCA lawsuit.

It is critical that companies take proactive steps to minimize their exposure to FCA lawsuits, such as setting up rigorous compliance programs, employee outreach programs, and putting structures in place to address potential areas of exposure.

Read the rest of the article: HERE


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