Justice Department Considering Using FCA to Recover Losses in Deepwater Horizon Disaster
FCA Legal Actions
Could Result in BP Paying Treble Damages To United States Taxpayers
Washington, D.C. July 26, 2010.
Assistant Attorney General Tony West confirmed that the U.S. Department
of Justice was "considering all avenues of redress against the potentially
responsible parties," according to a letter released today by the National
Whistleblower Center. The letter specifically mentions the False Claims Act
("FCA"). The letter is in response
to a letter from NWC urging the government to use the FCA to hold responsible
parties accountable for losses suffered by the taxpayers as a result of the
Deepwater Horizon disaster.
In a letter to the Executive Director of the National Whistleblower
Center, Assistant Attorney General West praised the "important contributions"
of whistleblowers (referred to as "relators under the FCA) "in assisting the
United States" in recovering "taxpayer funds." West stated:
"This
public-private partnership has proved a successful tool for the recovery of
public funds and for rewarding relators who bring allegations of fraud to the
government. Indeed, since January
2009 more then $3.6 billion was obtained under the Act's qui tam provisions, and relators were awarded more than $497
million for their efforts in helping government pursue these recoveries."
The FCA was originally signed into law by President Abraham Lincoln,
and was recently strengthened by Congress in 2009 and 2010. The law covers corporations that obtain
oil and gas leases from the United States, and provides for the payment of
treble damages if a company violates the FCA. Qualified whistleblowers that provide original information
concerning such violations are entitled to mandatory monetary rewards between
15% and 30% of any monies recovered by the United States pursuant to an FCA
case.
Stephen M. Kohn, the Executive Director of the National Whistleblower
Center praised Assistant Attorney General West's response:
"It is not enough to simply slap BP on the wrist by making them pay fine
and clean up costs. BP owes the taxpayers treble damages, and they must be made
to pay up.
The FCA is powerful tool, protecting and rewarding employees who expose
violations of environmental law and government lease agreements. Under the FCA, every corporation
involved in drilling under a federal government lease can be held accountable
to the taxpayer for treble damages if they violate the terms of those leases or
if they made false statements to obtain a lease. This liability stretches beyond the Deepwater Horizon
disaster. Workers, who risk their jobs and careers to expose violations of
leasing obligations, including violations of safety and environmental
standards, are entitled to significant monetary rewards if their claims are
covered under the FCA. We are encouraged that the Justice Department is
considering using the FCA as one of its legal tools for protecting Americans
from economic and environmental disaster in the Gulf Coast."
