NCJ Number
81189
Journal
Journal of Criminal Law and Criminology Volume: 72 Issue: 4 Dated: (Winter 1981) Pages: 1482-1521
Date Published
1981
Length
40 pages
Annotation
This article proposes that Congress enact a statute granting taxpayers standing to sue to recover money for the Government in cases of fraud and corruption of public officials. This strategy is needed in view of the magnitude of the Government's losses to fraud and the lack of Federal resources to handle the problem.
Abstract
General Accounting Office and other governmental agency data suggest that the magnitude of fraud is between $25-70 billion per year. The inadequacy of current criminal and civil sanctions, and the desirability of taxpayer litigation are detailed. Such litigation would supplement Government enforcement efforts. The concept of allowing citizens' suits as a vehicle for the Government to recover money is not new. In the 14th century, England enacted statutes allowing private individuals to initiate litigation on behalf of the Crown; such citizen suits were called 'qui tam' actions. Authority for citizen suits will lead to increased investigation, prosecution, and penalties, resulting in greater deterrence of future fraud and corruption. However, the current law of standing bars taxpayer suits in nonconstitutional cases unless they are explicitly authorized by statute. The only statute which could be used as a vehicle for these actions has been interpreted to totally preclude taxpayer-initiated proceedings. However, Congress does have the power to establish taxpayer standing by statute. The statute creating authority for taxpayer litigation should contain provisions setting forth the cause of action, jurisdiction, the relationship of the citizen's suit to the Government, and remedies. Each of these areas is considered in the article, and possible objections to authority for taxpayer standing are mentioned. A proposed statute to establish taxpayer standing is appended, and footnotes are included.