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The Deficit Reduction Act of 2005 and the Virginia Fraud Against Taxpayers Act: One Year Anniversary

March 13, 2008 marked the one year anniversary of the Virginia Fraud Against Taxpayers Act’s /files/116785-109034/DRA_regs.pdf”>Deficit Reduction Act of 2005.  In a nutshell, the Commonwealth now gets an extra 10% of all monies received in false claims cases brought under the Virginia statute.  

This is one of the biggest reasons for Virginia’s jump in recoveries for Medicaid fraud.  

Almost immediately, the Commonwealth began to experience the benefits of passing a OIG-approved false claims act.  On May 10, 2007, for example, a nationwide settlement of more than $600 million was announced against the Purdue Frederick Company, Inc.  Virginia’s cut was a total of $58.8 million dollars.

Next week, we will begin looking at what this has meant for the Commonwealth’s budget in the past year.  

Zachary A. Kitts
Cook & Kitts, PLLC  


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