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Editor: Mike Bothwell
Profession: Qui Tam Attorney

Category: Legislative Updates

On May 4, 2006, U.S. Representative Brian Baird introduced a bill to amend the False Claims Act to restrict the ability of the executive branch to keep whistleblower lawsuits under seal and out of the public eye.

On May 5, 2006, the Columbian reported that the bill was inspired by the dearth of public whistleblower cases concerning corruption in the Iraq reconstruction. The bill is entitled "Stop Fraud in Iraq". It proposes to amend the FCA to allow the Department of Justice only eight months per case before the case is unsealed. Representative Baird released a statement justifying the bill. "U.S. taxpayers have spent billions of dollars on the Iraq reconstruction effort," said Representative Baird. "It is appalling and disgraceful that our government is looking the other way while companies like Halliburton defraud hardworking American taxpayers. Our bill will ensure corrupt companies are held accountable for war profiteering." Representative Lofgren co-sponsored the bill. "We are not engaged in the Iraq war so that corporations could be free to rip off Iraqi money and property that the U.S. helps administer," said Representative Lofgren. "U.S. companies like Halliburton, that do business and profit from the war in Iraq, should not be allowed to get away with fraud in their contracts without remedy. Our bill would bolster the False Claims Act to ensure that corporations may not engage in fraudulent war profiteering in Iraq."

It does not appear that the bill provides for more resources for DOJ to review the cases, which might undermine the process of prosecution. However, it might be a curious experiment to see what would happen if DOJ were given sufficient time to review FCA cases, but for only a certain amount of that time could the case remain under seal. At some point, the seal seems to protect the defendant more than the investigation.