History
The FCA was born out of necessity in 1863. During the American Civil War, President Abraham Lincoln was plagued by "unscrupulous profiteers" who defrauded the government by selling faulty and misrepresented goods. To deter such fraud against the government and protect taxpayer funds, Lincoln signed the FCA into law.
The FCA was revolutionary as it recognized that the government couldn't be everywhere at once. Through the "qui tam" provision, private individuals with inside information are permitted to file claims on behalf of the government. These individuals are known as "relators" and may receive a share of the recovery as a reward for alerting the government to the fraud. Relators have become the backbone of modern FCA enforcement.
Recent Trends
The FCA has been a key tool used across administrations. Recently, the FCA has been in the spotlight as it is being used more aggressively than ever.
In Fiscal Year 2025, the Department of Justice reported over 1,250 lawsuits were filed and a staggering $6.8 billion in FCA settlements and judgments were recovered—the highest single-year recovery in U.S. history. This is a substantial increase from the year prior, and is a trend that is likely to continue.
The Trump Administration has made it clear that fighting fraud is a top priority. The administration has been keen on pursuing fraud cases involving COVID-19 Relief, Trade & Customs, Healthcare, and Cybersecurity.
If you would like to report fraud, waste, and abuse, please contact us.