New Mortgage Fraud Law May Expand False Claims Act

The Senate recently approved the Fraud Enforcement and Recovery Act of 2009, originally designed to combat mortgage fraud, however the Act also expands the Federal False Claims Act, generally brought by whistleblowers against health care providers. Pursuant to the Act, the government won’t have to prove that the defendant intended to defraud the U.S. government. The violator would only have to have had knowledge of information that a claim might be false, acted deliberately without verifying the information, or acted in reckless disregard of the truth or falsity of the information. Currently, the False Claims Act requires specific Knowledge of fraud.
The government recovered more than $15 billion using lawsuits under the False Claims Act from 2000 to 2008.
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