United States, ex rel. Brandon Barrick v. Parker-Migliorini International, LLC, et al.

Relator Brandon Barrick brought suit on behalf of the United States under the “reverse false claims” provision of the federal False Claims Act alleging liability against the Respondent exporters for their extensive fraudulent scheme involving the exportation of U.S.- based meat products to their customers in Japan, Hong Kong, and China. The federal False Claims Act (“FCA”) has been evolving since its early beginnings when Congress passed the original statute in 1863. Long thereafter in 1986, Congress amended the FCA and explicitly attempted to encourage qui tam actions, adding the reverse false claims provision at issue here. In 2009, Congress again amended the FCA as part of the Fraud Enforcement and Recovery Act of 2009. At this time, Congress made clear its intent that the FCA and its reverse false claims provision be applied with broad scope. However, despite both the FCA’s plain language as well as explicit congressional intent, the Tenth Circuit found that the Respondents’ rampant fraud upon the government is not cognizable under the FCA. The Question Presented Is: Are exporters liable under the reverse false claims provision of the FCA when they circumvent the United States regulatory inspection process and in doing so, knowingly conceal and avoid their obligation to obtain and pay for any and all certifications and inspections required when exporting U.S.-based meat products internationally?