July 24, 2009
  Emerging Issue in Risk Management: Federal False Claims Act
Expansions to oversee stimulus funds may extend scope of the law

On May 20, 2009, President Obama signed the Fraud Enforcement and Recovery Act of 2009, which will implement significant changes to the federal False Claims Act, notes the spring 2009 issue of the ReedSmith Federal Forecaster. Reprinted with permission here, the article points out a situation AIA members may want to share with their legal counsel. Because the new law includes liability “regardless of whether the claim was submitted directly to a government official or employee,” and “the new law would impose FCA liability for any subcontractor who submits claims to any recipient of government funds even where the claim cannot be directly traced back to money from the government,” there may be increased liability for pass-through expenses. (As always, seek advice from your legal counsel for circumstances specific to your practice.)

 

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