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June 14, 2008

Currie Scandal: Citizens Need a Maryland False Claims Act

The ongoing news reports about search warrants and subpoenas to obtain documents from the offices of State Senator Ulysses Currie, a long-time protege of Senator for Life Mike 'Puddinhead' Miller, has highlighted a glaring deficiency in Maryland law:  Maryland is one of a dwindling number of states that has failed to enact a state False Claims Act to protect the citizens against politicians and government contractors who steal from taxpayer funds.

The federal False Claims Act was enacted shortly after the Civil War, reacting to public revulsion at the widespread wartime procurment corruption which lead to the deaths of thousands of Union soldiers.  Today whisteblower cases brought under the FCA recover literally billions of dollars in fraudulent claims every year.

The success of the federal FCA has lead states with clean government lobbies to adopt similar state measures. One of the more recent is the Virginia Fraud Against Taxpayers Act (Virginia Code 8.01-216.1 et seq.) The VFATA creates a cause of action providing for civil penalties, treble damages, and attorney's fees against 'any person' who submits false claims for payment to the Commonwealth.  In just its first year in force, VFATA whistleblowers recovered $117 million for the Virginia state treasury.

Maryland has a very limited FCA-type statute that only covers false claims against the state medicaid system.  The ongoing scandals in our one-party state underline the need for a law to empower the citizens to protect themselves from the waste, fraud and abuse that is far too prevalent in Maryland state and county government.

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Comments

All states should enact a false claims act law to protect the taxpayers from fraud, wast and abuse. The federal false claims act has recovered over 20 billion dollars of fraud by goverment contractors. Maryland surely needs to look at the success of Virgina and other states that have already enacted a false claims act law.

John Schilling, Author - "Undercover"
http://ethicsolutionsllc.com

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