Vance says over 99% of fraud found in federal government falls outside False Claims Act
President Donald Trump suggested he would serve as “the arbitrator” of reward decisions in the Justice Department’s new anti-fraud tip program during an Oval Office announcement at the White House. The Justice Department website says the department has “sole discretion” in issuing rewards and exercising its authority under the program. A photograph published with The Guardian’s report showed Trump with Vice President JD Vance at the White House on Tuesday; the credit was Jacquelyn Martin/AP.
The Guardian said it was unclear whether Trump was being genuine about his new role. The Guardian asked the Justice Department and the White House for comment.
The program awards compensation to people whose tips result in a conviction or significant federal enforcement. The Justice Department website says anyone who submits a tip has an opportunity to receive a financial reward of up to $30,000 for tips in the “charging stage of a criminal case.”
The government already gives financial rewards to whistleblowers who file lawsuits against individuals and companies committing financial fraud through the False Claims Act. If the government intervenes in a suit and prosecutes it, whistleblowers can obtain 15% to 25% of the financial penalties. Vance said the new program provides whistleblower rewards at an earlier stage of investigation, rather than requiring the matter to result in large fines or forfeiture.
Trump said he had a solution for situations in which multiple people submitted tips about the same alleged fraud. “I was just thinking, when you do these things, sometimes there’s a dispute as to who turned ’em in and who didn’t turn ’em in, who’s supposed to get what and when, you know,” Trump told reporters.
“So I am going to do something, which I think people will like, I will be the arbitrator of all of these decisions. In other words, I’ll determine whether or not the person is deserving, and I will be very generous, believe me,” Trump said, resulting in laughter from the group.
Trump also said money would be paid immediately. “You’ll get your money immediately, but I’ll make the determination,” Trump added. “So if two people are fighting over it, maybe they’ll split it or maybe whatever, but I’ll make the determination. It’ll be done expeditiously and fairly.”
During the Oval Office announcement, Trump indicated that the program would result in whistleblowers obtaining 1% of however much fraud was uncovered. He insisted people could make “millions and millions” of dollars from submitting tips. The Justice Department website says the program is limited to a $30,000 reward.
Trump encouraged members of the media to participate by investigating and reporting instances of fraud. He said the government would be willing to give reporters the financial reward so long as their respective outlet allowed it. “We’re going to let the reporters partake because you know a lot of things that is happening,” Trump said.
Vance, who leads the White House taskforce to eliminate fraud, said the new program differs from the False Claims Act because it expands the opportunity for financial reward in cases of fraud related to the government. “Over 99% of the fraud that we’re finding in the federal government isn’t covered by the False Claims Act,” Vance said.
Vance said he and Trump decided to create the program to incentivize more people to report fraud like Nick Shirley, a conservative influencer who went viral earlier this year for accusing Somali-run childcare centers in Minnesota of “rampant fraud.”