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The False Claims Act Statute is a federal statute that holds persons who cheat federal government programmes accountable.

False Claims Act Statute

The False Claims Act Statute is a federal statute that holds persons who cheat federal government programmes accountable. The legislation is the primary instrument utilised by the federal government in prosecuting people and businesses that commit fraud.

False Claims Act, 31 U.S. Code 3729

The Fraudulent Claims Act Statute is located in U.S. Code 3729, which goes into further depth concerning false claims and how people or businesses may be held accountable for specific conduct. It states that anybody who does any of the following offences faces a fine of at least $5,000 and up to $10,000, payable to the US government. The requirements for these obligations are provided in Public Law 104-401’s Federal Civil Penalties Adjustment Act of 1990, or 28 U.S.C. 2461. (1). The statute also empowers the government to recover three times the damages experienced as a result of the individual’s fraudulent claims or fraud. Among the actions for which someone may be held accountable are:

Presents a fraudulent or fake claim for approval or payment knowing and willfully.

Knowingly and purposefully causes or manufactures a false statement or record to be utilised or used as material for a fraudulent or false claim.

Conspiring to violate any legislation pertaining to making claims.

Having control, custody, or possession of money or property to be used or presently utilised by the government and willfully causing or supplying less than the whole amount of money or property.

Having authority to give or manufacture a document that confirms the receipt of property to be used by the government, and delivering or producing the receipt without knowing for certain that the information on the receipt is correct.

Receiving or acquiring property with knowledge from a governmental official, officer, or member of the armed forces who is not lawfully authorised to pledge or sell that property.

Knowingly hiding or evading a payment duty to the government, or using or producing a false statement or record concerning the responsibility to transfer or pay money or property to the government

Damages have been reduced.

In rare situations, the court may determine that a person or organisation qualifies for a lower damages punishment. If the court finds that any of the following conditions apply, the person or corporation may be eligible for reduced damages:

The person who broke the false claims statutes reported information about the offence to US authorities within 30 days of the information being supplied to the defendant.

The person completely cooperated with the government’s inquiry into the infraction.

The person who provided information regarding the violation was unaware of any investigation into the violation, and no administrative action, civil action, or criminal prosecution had begun in relation to the violation.

In some situations, the court may impose a punishment equal to twice the amount of damages experienced by the government as a result of the individual’s actions, rather than the typical triple penalty.

Costs of Civil Litigation

Civil actions may sometimes be quite expensive. An person or corporation that breaches laws relating to fraud or making false claims may be accountable to the United States government for the expenses of any civil legal action taken in court to collect damages or fines for what the government lost as a result of the activities.


It is critical to grasp what particular terminology, phrases, and words signify in these sections and subsections. For example, the phrases “knowingly” and “knowing” denote that a person, in relation to particular information:

Deliberately acts in ignorance of the information’s inaccuracy or veracity.

Has firsthand knowledge of the information.

In their acts, they recklessly ignore the inaccuracy or veracity of the information.

The government does not need evidence of intentional intent to cheat its officers.

Another phrase that appears often in these portions of the United States Code is claim, which refers to any demand or request for property or money, whether made via a contract or otherwise. To be eligible for a claim, the property or money must be:

Presented to a U.S. government agent, employee, or officer.

Made to a grantee, contractor, or other recipient for use or expenditure on behalf of the government.

The laws are in effect if the government:

Has supplied or will supply any share of the money or property asked or sought.

Will compensate any recipient for all or a part of the property or money claimed or asked.