False Claims Act would target fraud in Kentucky

FRANKFORT, Ky. (AP) - 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.

(Copyright 2012 by The Associated Press. All Rights Reserved.)


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