United States Attorneys’ Offices recently announced a number of False Claims Act (FCA) settlements arising out of the Paycheck Protection Program (PPP). These settlements reveal several trends that PPP loan recipients should be aware of.Continue Reading Recent Deluge of Paycheck Protection Program False Claims Act Settlements
FY 2024 saw continued growth in False Claims Act enforcement, with a record year for new qui tam and government-initiated actions, and the highest total recovery in three years. Enforcement of pandemic-related fraud and cybersecurity noncompliance increased, and health care, procurement, and small business fraud violations were again priority areas. A groundbreaking opinion from the
In this episode, hosts Jason Crawford, Agustin Orozco, and Yuan Zhou discuss the evolving disclosure landscape and the various risks and rewards that contractors must weigh when deciding what to disclose, when to disclose, and where to direct the disclosure.
“Let’s Talk FCA” is Crowell & Moring’s podcast covering the latest developments with the False
Last month marked the 16-year anniversary of the FAR Mandatory Disclosure Rule (MDR) going into effect, which created requirements for federal contractors to disclose violations of specific categories of federal criminal law and violations of the civil False Claims Act (FCA). But the passage of time has not simplified the analysis that government contractors must undertake when they learn of allegations about conduct that could be disclosable to the government. Rather, legal developments and new Department of Justice (DOJ) policies have created additional considerations for federal contractors as they navigate a complex disclosure landscape.Continue Reading The Evolving Landscape of Disclosure Considerations for Government Contractors
On December 18, 2024, the U.S. Attorney’s Office for the Western District of Texas announced a $680,000 False Claims Act (FCA) settlement with Lafayette RE Management LLC (Lafayette) in connection with the real estate investment firm’s receipt of a Paycheck Protection Program (PPP) loan at the height of the pandemic. Crowell has previously reported on DOJ’s steady pursuit of PPP cases which have resulted in FCA settlements based on issues such as affiliation (discussed here) and ineligibility under the program’s rules (discussed here), but the Lafayette settlement is the first time that the government has intervened in a case based on the economic necessity certification that all PPP borrowers had to make on the initial loan application. Continue Reading DOJ Settles PPP Case Based on Economic Necessity Certification
Yesterday, less than an hour into the first day of confirmation hearings for attorney general nominee Pam Bondi, Senator Chuck Grassley (R-IA) questioned Bondi on her commitment to defending the constitutionality of the False Claims Act (FCA) if she is confirmed. Bondi responded that she would “of course” defend the constitutionality of the FCA and that she understands the importance of whistleblowers, the FCA’s protections, and “the money it brings back to our country.” Senator Grassley’s questioning indicated he was focused on the FCA’s qui tam provisions, as it comes on the heels of U.S. ex rel. Zafirov v. Florida Medical Associates, Inc., — F.Supp.3d –, 2024 WL 4349242 (M.D. Fla. Sept. 30, 2024), a first-of-its-kind decision from Judge Kathryn Kimball Mizelle, who held that the FCA’s qui tam provisions improperly appoint a relator “an officer of the United States” in violation of the Appointments Clause in Article II of the Constitution, and are therefore unconstitutional. Senator Grassley appeared to be seeking assurances about Bondi’s willingness to ensure the Department of Justice continues to defend the FCA’s qui tam provisions and commit the resources necessary to do so.Continue Reading AG Nominee Pam Bondi Confirms Commitment To Defending Constitutionality of False Claims Act as Qui Tam Provisions Face Scrutiny in the Courts
In this episode, Jason Crawford, Agustin Orozco, and Will Tucker discuss U.S. ex. rel. Zafirov v. Florida Medical Associates LLC, the recent decision in which a court found the qui tam provisions of the False Claims Act to be unconstitutional. The hosts analyze the court’s reasoning and consider
Judge Kathryn Kimball Mizelle of the District Court for the Middle District of Florida recently declared the False Claims Act qui tam provisions unconstitutional in U.S. ex rel. Zafirov v. Fla. Med. Assocs., LLC, — F.Supp.3d –, 2024 WL 4349242 (M.D. Fla. Sept. 30, 2024), turning up the heat on a simmering constitutional fight
In a novel False Claims Act (FCA) ruling, on September 30, 2024, Judge Kathryn Kimball Mizelle of the District Court for the Middle District of Florida upended decades of FCA jurisprudence in declaring the qui tam provisions of the FCA unconstitutional in U.S. ex rel. Zafirov v. Florida Medical Associates, LLC, 2024 WL 4349242 (M.D. Fla. Sept. 30, 2024). This decision follows Justice Thomas’ dissent in the recent Supreme Court decision, U.S. ex rel. Polansky v. Executive Health Resources, Inc., 599 U.S. 419 (2023), where he posited, “[t]here are substantial arguments that the qui tam device is inconsistent with Article II and that private relators may not represent the interests of the United States in litigation.” While Justice Thomas’ implicit constitutional challenge was not entirely new to FCA practitioners, including it in his Polansky dissent, with Justices Kavanaugh and Barrett in a concurring opinion noting their agreement that the Court should consider the constitutional questions in an appropriate case, swung wide open a door of opportunity for defendants and their counsel to attempt to dismiss FCA qui tam suits on constitutional grounds. Judge Mizelle’s decision in Zafirov is the first of its kind to actually dismiss a qui tam suit on constitutional grounds, and will likely lead to an avalanche of similar motions in nearly every non-intervened lawsuit brought by a relator.Continue Reading In the Upside Down: District Court Upends Decades of False Claims Act Precedent in Declaring Qui Tam Provisions Unconstitutional
On August 8, 2024, the U.S. Attorney’s Office for the Central District of California announced a $6.3 million False Claims Act settlement with West Coast Dental Administrative Services LLC (formerly West Coast Dental Services Inc.) and its founders and former owners due to seven improper second-draw Paycheck Protection Program loans received by West Coast Dental and affiliated dental offices. Continue Reading California Dental Offices Settle FCA Allegations Regarding Second-Draw PPP Loans for $6.3M