· The
False Claims Act comes into play when an individual
or group (frequently referred to as the "whistleblower")
suspects illegal conduct by another person or entity
who:
- Knowingly presents a false claim (in the form of
an invoice or request for funds) to the United
States Government.
- Willingly participates in activities with intent of
obtaining a false claim from the United States Government.
- Conspires to obtain, withhold, conceal, or purchase
property from the United States Government without
proper authorization.
- Knowingly misrepresents the truth with the intent
of defrauding the United States Government by avoiding
financial or material obligations.
Once found guilty under the False
Claims Act, a perpetrator is liable for treble the damages
sustained by the government as a result of the false
claim, in addition to a mandatory fine of between $5,500
and $11,000 per false claim. Since individuals or entities
found guilty of submitting false claims usually submit
multiple claims, these penalties can quickly add up.
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