The False Claim Act (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. FCA liability can arise in other situations, such as when someone knowingly uses a false record material to a false claim or improperly avoids an obligation to pay the government. Conspiring to commit any of these acts also is a violation of the FCA.
In addition to allowing the United States to pursue perpetrators of fraud on its own, the FCA allows private citizens to file suits on behalf of the government (called “qui tam” suits) against those who have defrauded the government. Private citizens who successfully bring qui tam actions may receive a portion of the government’s recovery. Many Fraud Section investigations and lawsuits arise from such qui tam actions.
The Department of Justice obtained more than $2.9 billion in settlements and judgments from civil cases involving fraud and false claims against the government in the fiscal year ending Sept. 30, 2024.
Examples of false claims against government contracts are:
- Submitting false time records
- False medical billing by providers
- False or overbilling for materials
- Using non-approved materials
- Knowingly providing a false product
“The FCA, a federal law aimed at combating fraud against governmental programs, imposes severe penalties on violators. In this case, the total statutory penalty for the false claims was calculated at $411,560,406, bringing the total damages to $417,910,021.26.
The court awarded Nancy D’Anna and Valerie Paige Zeiger, the qui tam relators who played a pivotal role in uncovering the fraud, 25% of the total award, amounting to $104,477,503.30.” (Source ABC News 33 – Birmingham, AL)
Whistleblower case results in $417 million judgment against Alabama medical provider
Information on False Claims Act Litigation | U.S. GAO
Civil Division | Fraud Section Press Releases | United States Department of Justice