FRAUD RECOVERY PROCEEDS MUST BE DELIVERED TO U.S. TREASURY DEPARTMENT.

PURPOSE: All penalties and government recoveries from defense industries' fraud, under the qui tam statute, were originally intended to be deposited in the federal treasury's "general funds" account which is sometimes called the "miscellaneous receipts account". U.S. ex rel Kelly v. Boeing Corp., 9 F.3d at 769

Title 31 U.S.C. § 3729-3733. The False Claims Act.

"Recent reports from the Department of Justice indicate that over a billion dollars has been recovered in civil fraud cases brought under the False Claims Act during the past decade. These substantial returns to the Treasury show the value of this Act. Edwin Meese III, 15 Aug. 1996

"Qui tam" is abbreviation of the Latin phrase "qui tarn pro domino rege quam pro si ipso in hac parte sequitur" meaning "Who sues on behalf of the King as well as for himself."

SUCCESSION: QUI TAM AWARDS - U.S. v. Florida-Vanderbilt Development Corp., D.C. Fla., 326 F.Supp. 289, 290. (It is an action brought by a relator, under a statute which establishes a penalty for the commission or omission of a certain act, and provides that the same shall be recoverable in a civil action, part of the penalty to go to any person who will bring such action and the remainder to the state or some other institution. It is called a "qui tam action" because the plaintiff states that he sues as well for the state as for himself.)

U.S. ex rel Gibeault v. Texas Instruments, 104 F.3d 276 (9th Cir. 1997) - "...were in part proceeds of the action and due to the public treasury."

U.S. ex rel Kelly v. Boeing Corp., 9 F.3d at 769 (All penalties and government recoveries from defense industries' fraud, under the qui tam statute, were originally intended to be deposited in the federal treasury's "general funds" account which is sometimes called the "miscellaneous receipts account".)

U.S. ex rel Springfield Terminal Ry. Co. v. Quinn, 14 F.3d 645, 649 (D.C. Cir. 1994) (qui tam provisions are meant to encourage insiders with "genuinely valuable information" which will return money to the Federal Treasury).

U.S. ex rel Jane Doe 1 et al. v. X, Inc. et al., 2000 WL 305742 (E.D. Va. March 23, 2000) - "The court noted that, even without intervention, the United States receives the majority of any amount recovered and retains significant rights over the litigation."

"Moreover, in the course of the qui tam proceedings, any findings of fact which show a potential for increased return to the Federal Treasury are material to the court's application of Section 3730(b)(5), (Comment added: Section 3730(b)(5) is the "first-to-file" bar)." Source: Page 3 - Brief of Taxpayers Against Fraud, The False Claims Act Legal Center as AMICUS CURIAE Supporting Appellant in United States of America, ex rel. Linda A. Lujan, Appellant, vs. Hughes Aircraft Company, Appellee, No, 00-55328, in the United States Court of Appeals For The Ninth Circuit.

• Reference: DOJ, US Attorney's Manual (DOJ), § 4-1.511 - Cases Delegated To United States Attorneys., ¶ 2, (Rev.06/98.) - "Disposition of delegated cases, like the disposition of nondelegated cases, must be accurately reported on the Department's statistical reporting system. In particular, all money and property collected for the government should be reported."

• Reference: DOJ, US Attorney's Manual, Title 4, 4-4.430 Collections. "A major responsibility of the Attorney General, the Civil Division, and the United States Attorneys is recovering sums owed the United States. "In particular, all referrals of money claims which come within the United States Attorneys' delegated authority up to $1,000,000 should be made through the National Central Intake Facility. Referrals beyond that amount should continue to be made directly to the Commercial Litigation Branch of the Civil Division."