Q&A: Whistleblowers Shine Light On Fraud
With U.S. Senator Chuck Grassley
Q: Why did you update “Lincoln’s Law” a century after its enactment during the Civil War?
A: History teaches many lessons from which current and future generations can benefit to make our country stronger and communities safer. Consider one example: The False Claims Act (FCA) of 1863 signed into law by President Lincoln. This fraud-fighting tool took aim at corrupt government contractors who sold the Union Army a bill of goods, from spoiled food, to gunpowder mixed with sawdust, sick mules and more. Taxpayers were cheated and soldiers reported receiving boots made of cardboard rather than leather. The FCA created a monetary incentive for employees to blow the whistle on fraud happening under their noses. Wrongdoers who “knowingly submitted false claims to the government” were liable for double the government’s damages and a $2,000 penalty. Whistleblowers kept half of any fine collected based on their tip. Honest Abe’s law held dishonest contractors to account and beefed up the federal government’s arsenal to fight fraud. Following the Civil War, the FCA faded into history when Congress in 1943 watered down the qui tam provisions that allowed individuals to file suit on behalf of the government and lowered their share of the recovery to 25 percent. During the Reagan administration, my oversight work uncovered rampant waste, fraud and abuse at the Department of Defense. Iowans work hard for their money and charging the taxpayer $7,000 for a coffee pot and $640 for a toilet seat flunks fiscal responsibility. That’s when I turned to history and resurrected the FCA. My 1986 amendments strengthened the qui tam provisions and boosted financial incentives for stepping forward. My updates also added anti-retaliation protections to prevent employers from firing, demoting or discriminating against whistleblowers who report the truth. Since my amendments were enacted, the federal government has recovered more than $64 billion. The U.S. Justice Department says it’s the #1 tool to fight and deter fraud.
Q: Are your whistleblower amendments primarily aimed at Pentagon waste?
A: Although the FCA is still instrumental to fight fraud among military contractors, the scope of my whistleblower amendments has expanded to protect taxpayer dollars across the entire government, from disaster relief to nutrition assistance, securities and tax fraud, and health care spending, including drug and medical device manufacturers, managed care providers, hospitals, pharmacies, hospice organizations and laboratories. Considering the federal spigot was dialed wide open with trillions of dollars in pandemic relief, whistleblower laws are more important than ever. Since March 2020, Congress has approved more than $5 trillion to mitigate fall-out from the economy shutting down and respond to the public health emergency, from providing personal protective equipment (PPE) to the Paycheck Protection Program (PPP). That’s why I called for aggressive oversight and accountability on federal pandemic relief programs to root out waste, fraud and abuse. Since the earliest days of our republic, whistleblowers have served as courageous patriots for truth. In fact, 243 years ago, the Continental Congress called upon Americans to report wrongdoing to “the proper authorities” and enacted the nation’s first whistleblower legislation on July 30, 1778. Several years ago, I led the effort to make July 30 National Whistleblower Appreciation Day to honor and encourage citizens to carry forward the crusade for truth, expose misconduct and hold government responsible. Every American has a patriotic duty to blow the whistle if they’re aware of laws being violated or taxpayer dollars being misspent. Reporting the truth comes with a heavy price, as whistleblowers put their reputations, careers and livelihoods on the line. As long as I’m in the United States Senate, I’ll keep a check on the federal bureaucracy and the courts to ensure they’re enforcing and interpreting the law as Congress intended, respectively. Most recently, I’m working to restore whistleblower protections weakened by a 2016 Supreme Court ruling. I’ve introduced bipartisan legislation that would reset the proper interpretation of the FCA to prevent wrongdoers from arguing fraud was not material simply because the government continued payment; ensure protections apply to post-employment retaliation; and, make fraudsters liable for reimbursing government costs for a burdensome discovery process. Those who report fraud against the government – “of, by and for the people” – ought to be thanked, celebrated and rewarded for sticking out their necks to tell the truth. Like I’ve done with every administration since President Reagan, I call upon President Biden to hold a Rose Garden ceremony to honor whistleblowers. Instead of being treated like skunks at a picnic, let whistleblowers smell the roses at the White House and bask in appreciation of a nation well served for shining a light on waste, fraud and abuse.
Sen. Chuck Grassley is founder and co-chairman of the Senate Whistleblower Protection Caucus. He’s the lead Senate sponsor of the resolution to observe July 30 as National Whistleblower Appreciation Day.
Original source can be found here.
