False Claims
  ·Summary of the False Claims Act

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.