False Claims Act Would Target Fraud in Kentucky

Feb 15, 2012

Kentucky Speaker of the House Greg Stumbo says he is filing legislation to give whistleblowers strong financial incentive to step forward if state tax dollars are being misused.  Stumbo, a Democrat, said Tuesday the False Claims Act would root out fraud and potentially reduce the state's budget deficit by millions of dollars.  He said it would "extend far beyond Medicaid" to be used "anywhere fraud with state tax dollars is taking place."  The federal government created a false claims act in 1986, and several other states now have similar laws.  Those found guilty would be liable for up to three times the amount they had fraudulently billed the state; whistleblowers will be eligible to receive anywhere from 15 to 30 percent of the money recovered as a reward.