New US Law Combats Fraud, Waste and Abuse in Federal Programs and Financial Institutions, including new Federal Bailout/Stimulus Programs
28 May 2009
Mayer Brown Legal Update
On May 20, 2009, President Obama signed into law the Fraud Enforcement and Recovery Act of 2009 (FERA). FERA contains a number of measures intended to combat mortgage, securities and commodities fraud, and to protect against fraud, waste and abuse in federal bailout/stimulus programs. In addition to the modifications of criminal law, the bill amends the civil False Claims Act (FCA) to both broaden liability and to enhance the ability of the US Department of Justice and qui tam plaintiffs (whistleblowers) to bring actions and share information. We review and highlight some of the key effects of the new law.