II 

109TH CONGRESS 

1ST SESSION S. 636 

To direct the Inspector General of the Department of Justice to submit 

semi-annual reports regarding settlements relating to false claims and 

fraud against the Federal Government. 

IN THE SENATE OF THE UNITED STATES 

MARCH 16, 2005 

Mr. GRASSLEY introduced the following bill; which was read twice and referred 

to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To direct the Inspector General of the Department of Justice 

to submit semi-annual reports regarding settlements relating to false claims and fraud against the Federal 

Government. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. FALSE CLAIMS SETTLEMENTS. 

4 Section 8E of the Inspector General Act (5 U.S.C. 

5 App.) is amended by adding at the end the following: 

6 ‘‘(e)(1) In preparing the semi-annual report under 

7 section 5, the Inspector General of the Department of Jus8 tice shall describe each settlement or compromise of any 
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1 claim, suit, or other action entered into with the Depart2 ment of Justice that— 

3 ‘‘(A) relates to an alleged violation of section 

4 1031 of title 18, United States Code, or section 

5 3729 of title 31, United States Code (including all 

6 settlements of alternative remedies); and 

7 ‘‘(B) results from a claim of damages in excess 

8 of $100,000. 

9 ‘‘(2) The descriptions of each settlement or com10 promise required to be included in the semi-annual report 

11 under paragraph (1) shall include— 

12 ‘‘(A) the overall amount of the settlement or 

13 compromise and the portions of the settlement at14 tributed to various statutory authorities; 

15 ‘‘(B) the amount of actual damages estimated 

16 to have been sustained and the minimum and max17 imum potential civil penalties incurred as a con18 sequence of the defendants that is the subject of the 

19 settlement or compromise; 

20 ‘‘(C) the basis for the estimate of damages sus21 tained and the potential civil penalties incurred; 

22 ‘‘(D) the amount of the settlement that rep23 resents damages and the multiplier or percentage of 

24 the actual damages applied in the actual settlement 

25 or compromise; 
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1 ‘‘(E) the amount of the settlement that rep2 resents civil penalties and the percentage of the po3 tential penalty liability captured by the settlement or 

4 compromise; 

5 ‘‘(F) the amount of the settlement that rep6 resents criminal fines and a statement of the basis 

7 for such fines; 

8 ‘‘(G) the length of time involved from the filing 

9 of the complaint until the finalization of the settle10 ment or compromise, including— 

11 ‘‘(i) the date of the original filing of the 

12 complaint; 

13 ‘‘(ii) the time the case remained under 

14 seal; 

15 ‘‘(iii) the date upon which the Department 

16 of Justice determined whether or not to inter17 vene in the case; and 

18 ‘‘(iv) the date of settlement or compromise; 

19 ‘‘(H) whether any of the defendants, or any di20 visions, subsidiaries, affiliates, or related entities, 

21 had previously entered into 1 or more settlements or 

22 compromises related to section 1031 of title 18, 

23 United States Code, or section 3730(b) of title 31, 

24 United States Code, and if so, the dates and mone25 tary size of such settlements or compromises; 
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1 ‘‘(I) whether the defendant or any of its divi2 sions, subsidiaries, affiliates, or related entities— 

3 ‘‘(i) entered into a corporate integrity 

4 agreement related to the settlement or com5 promise; and 

6 ‘‘(ii) had previously entered into 1 or more 

7 corporate integrity agreements related to sec8 tion 3730(b) of title 31, United States Code, 

9 and if so, whether the previous corporate integ10 rity agreements covered the conduct that is the 

11 subject of the settlement or compromise being 

12 reported on or similar conduct; 

13 ‘‘(J) in the case of settlements involving med14 icaid, the amounts paid to the Federal Government 

15 and to each of the States participating in the settle16 ment or compromise; 

17 ‘‘(K) whether civil investigative demands were 

18 issued in process of investigating the case; 

19 ‘‘(L) in qui tam actions, the percentage of the 

20 settlement amount awarded to the relator, and 

21 whether or not the relator requested a fairness hear22 ing pertaining to the percentage received by the rela23 tor or the overall amount of the settlement; 

24 ‘‘(M) the extent to which officers of the depart25 ment or agency that was the victim of the loss re-
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1 solved by the settlement or compromise participated 

2 in the settlement negotiations; and 

3 ‘‘(N) the extent to which relators and their 

4 counsel participated in the settlement negotiations.’’. 

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