The False Claims Act ( et seq.), a United States federal law, provides a powerful legal tool to counteract fraudulent billings turned in to the Federal Government. Citizens with insider knowledge of false claims in health care, military, or other government spending programs can be rewarded.

Provisions

The Act establishes liability when any person or entity improperly receives from or avoids payment to the Federal government--tax fraud excepted. In summary, the Act prohibits:

1. Knowingly presenting, or causing to be presented to the Government a false claim for payment;
2. Knowingly making, using, or causing to be made or used, a false record or statement to get a false claim paid or approved by the government;
3. Conspiring to defraud the Government by getting a false claim allowed or paid;
4. Falsely certifying the type or amount of property to be used by the Government;
5. Certifying receipt of property on a document without completely knowing that the information is true;
6. Knowingly buying Government property from an unauthorized officer of the Government, and;
7. Knowingly making, using, or causing to be made or used a false record to avoid, or decrease an obligation to pay or transmit property to the Government.

1986 changes

(False Claims Act Amendments of 1986, Pub. L. 99-562, Oct. 27, 1986, 100 Stat. 3153)

1. The elimination of the "government possession of information" bar against qui tam lawsuits;
2. The establishment of defendant liability for "deliberate ignorance" and "reckless disregard" of the truth;
3. Restoration of the "preponderance of the evidence" standard for all elements of the claim including damages;
4. Imposition of treble damages and civil fines of $5,000 to $10,000 per false claim;
5. Increased rewards for qui tam plaintiffs of between 15-30 percent of the funds recovered from the defendant;
6. Defendant payment of the successful plaintiff's expenses and attorney's fees, and;
7. Employment protection for whistleblowers including reinstatement with seniority status, special damages, and double back pay.

Example

In March 2006 the US contractor, Custer Battles, was found liable for fraud in connection with contracts for the U.S. Government in Iraq. This was the first time that the False Claims Act has been used against a contractor in Iraq. Further accusations, still to be tried in court, relate to a US$16 million contract for securing Baghdad International Airport.

See also

• U.S. false claims law (in depth)

External links

• Taxpayers Against Fraud
• FalseClaimsLaw.Com
• False Claims Law Abuse
• Qui Tam your False claims Act Source
• Civil False Claims/Qui Tam Page
• How a Qui Tam Whistleblower Case Works
• Fraudhotline.com