AG Gonzales Failed to Effectively Prosecute False Claims Acts Against Private Contractors

During Senate confirmation, Alberto Gonzales pledged to vigorously pursue false claims actions against all who sought to defraud the U.S. government. Senator Grassley actually questioned Gonzales in writing regarding his position on the False Claims Act (FCA), 31 U.S.C. §§ 3729-3733. Specifically, the Senator asked Gonzales how he would handle false claims litigation and what Gonzales would do to defend the U.S. against those who seek to defraud it.

The importance of the unequivocal promise of Gonzales to vigorously pursue such claims lies in the fact that the FCA is a principle weapon in the U.S. arsenal against war profiteering. The FCA lets private individuals, ideally in conjunction with Attorney General Gonzales recover triple the fraudulent payments plus fines from anyone who knowingly participates in filing false claims with the U.S. government.

Called the Lincoln Law, Congress enacted it in March 1863 to root out war profiteering and fraud in times of war. For instance, profiteers would ship sawdust instead of guns. "You can sell anything to the government at almost any price you've got the guts to ask," boasted Jim Fisk, a Civil War profiteer, who made millions unloading moldy blankets to the military. In United States v. McNinch, 356 U.S. 595, 599 (1958), the Supreme Court explained:

The False Claims Act was originally adopted following a series of sensational congressional investigations into the sale of provisions and munitions to the War Department. Testimony before the Congress painted a sordid picture of how the United States had been billed for nonexistent or worthless goods, charged exorbitant prices for goods delivered, and generally robbed in purchasing the necessities of war.