Contractor Fines

[Tamblyn]

Headlines:

Contractor pays $9.25 million to settle false claims act allegations.

Contractor agrees to pay the $1.5 million to resolve allegations that it knowingly submitted false claims and paid kickbacks relating to a DOE contract.

Contractor and its President agree to pay $200,000 to resolve claims that they inappropriately obtained HUBZone contracts.

Contractor's owner agrees to pay $800,000 to settle allegations that it falsely obtained a contract set aside for Service-Disabled Veteran-Owned Small Business.

Contractor agrees to pay $13 million to resolve allegations that it paid kickbacks to a contractor employee.

Question:

Does the Government usually receive these fines in full?

Does anybody know how much in fines, on average, gets back into our treasury in a fiscal year?

Comment:

It seems that there could be substantial funds to offset some of the budget shortfalls...?

Just looking for some enlightenment on this subject from those in the know about these funds. Thanks!

[C Culham]

By posting a response it might give cause for others to chime in as I can not answer your questions specifically. In part because each does lead to detailed discussion. With regard to the topic in general have you taken a look at Volume III, Chapter 13 and Volume IV, Chapter 17 of the "Red Book"? These chapters will give you some insight.

[outsidelegalguy]

For last fiscal year, DoJ reported $3 billion in civil False Claims Act recoveries, the great bulk of which were in the healthcare area. See http://www.justice.gov/opa/pr/2010/November/10-civ-1335.html

The press release at the link seems to equate a settlement with a recovery and doesn't address how often the defendant fails to pay. But, I know from personal experience that DoJ generally requires a provision in the settlement agreement that the defendant is able to pay and I've never heard of the government having to sue someone for non-payment.