Disclaimer:This article is for your personal information only and is not intended as legal advice. This area of the law is very complex. Every case is different and the information contained herein is general. This information is not intended to be legal advice. Nor is this material intended to replace consultation with a professional. Always consult a licensed attorney for your particular case. Nothing herein shall create an attorney/client relationship.
Contract Law Q. What is the False Claims Act?
A. The False Claims Act, 31 U.S.C. 3729-3733, imposes civil liability on any person or entity who submits a false or fraudulent claim for payment to the United States government. In general, the False Claims Act covers fraud involving any federally funded contact or program, with the exception of tax fraud.
The primary activities that constitute violations under the False Claims Act are (1) knowingly presenting (or causing to be presented) to the federal government a false or fraudulent claim for payment; (2) knowingly using (or causing to be used) a false record or statement to get a claim paid by the federal government; (3) conspiring with others to get a false or fraudulent claim paid by the federal government; and (4) knowingly using (or causing to be used) a false record or statement to conceal, avoid, or decrease an obligation to pay money or transmit property to the federal government.
It is also improper to cause someone else to submit a false claim. For example, if a subcontractor provides false information to a contractor, who in turn bills the government based on that false information, the subcontractor is liable for causing the submission of a false claim.
Under the False Claims Act, an action must be filed within the later of the following two time periods: (1) six years from the date of the violation of the Act; or (2) three years after the Government knows or should have known about the violation, but in no event longer than ten years after the violation of the Act.
Q. What is a contractor's potential liability for violations of the False Claims Act?
A. Penalties under the False Claims Act can be severe. A person or entity who violates the act must repay three times the amount of damages suffered by the government plus a mandatory civil penalty of at least $5,500.00 per false claim, for all claims made after September 29, 1999.