False Claims Against the Government

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Multi-State
Control #:
US-5THCIR-CR-2-14
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Word
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Description

False Claims Against the Government

False Claims Against the Government (also known as quitui tam”) is when a person or business knowingly submits false information to the government in order to receive some form of benefit or payment. These false claims can be intentional or unintentional, and the person or business submitting them can be liable for fines and/or imprisonment. Types of False Claims Against the Government include: submitting false information for contracts, submitting false information for grants, submitting false information for medical services, and submitting false information for tax benefits. In all cases, the government has the right to seek financial restitution for the fraud.

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FAQ

The False Claims Act defines knowledge broadly to include the following: Actual knowledge. Deliberate ignorance of the truth or falsity of the information. Reckless disregard of the truth or falsity of the information.

Fraud against the government, like any fraud, is just theft by another name. The ultimate victim is not the government: it is the hardworking taxpayer. Government funds come from taxpayers, and so theft from the government is theft from taxpayers.

The Federal False Claims Act is the U.S. Government's primary weapon for combatting fraud. It allows whistleblowers to sue persons or entities that are defrauding the government and recover damages and penalties on the government's behalf.

Common Examples of False Claims Billing for goods/services never delivered. Double billing for the same good/service. Failing to report government overpayments. Misrepresenting costs or records related to performance or quality. Billing for non-FDA approved drugs or devices. Performing unnecessary medical procedures.

The whistleblower protection provision of the False Claims Act encourages private citizens to act as whistleblowers when they suspect fraud on the government. The False Claims Act anti-retaliation provision protects both whistleblowing to the government and internal whistleblowing.

The FCA provides that any person who knowingly submits, or causes to submit, false claims to the government is liable for three times the government's damages plus a penalty that is linked to inflation .

31 U.S.C. 3729(b). In sum, the False Claims Act imposes liability on any person who submits a claim to the federal government that he or she knows (or should know) is false. An example may be a physician who submits a bill to Medicare for medical services she knows she has not provided.

The False Claims Act (?FCA?) prohibits individuals and companies from defrauding the federal government. It rewards whistleblowers who provide information about fraud against the government (see False Claim Act Whistleblower Incentives) and protects whistleblowers from retaliation after they report their concerns.

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False Claims Against the Government