False Claims Act

Government Whistle-Blower Bill Advances in Kentucky House

Mar 20, 2012

Whistleblowers in Kentucky could get financial incentives for reporting misuse of state tax dollars under a measure that passed the state House Monday.  Speaker Greg Stumbo sponsored the bill now heading to the Senate for consideration. Stumbo says the bill, dubbed the "False Claims Act," could root out fraud and reduce the state's budget deficit by millions of dollars.  Kentucky already has a whistle-blower law in place that applies to Medicaid programs.

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