Frequently Asked Questions

What is the False Claims Act Statute as outlined in U.S. Code § 3729?

The False Claims Act Statute, as outlined in U.S. Code § 3729, is a federal law that holds individuals or companies liable for fraudulent claims against the U.S. Government. The Act stipulates that anyone who knowingly and intentionally presents a fraudulent claim, makes a false statement or record, conspires to break any law related to making claims, or knowingly conceals or avoids an obligation to pay the government, among other acts, is liable for a penalty of at least $5,000 and up to $10,000. This penalty is payable to the U.S. Government and is regulated by the Federal Civil Penalties Adjustment Act of 1990. In addition to the penalty, the government can also collect three times the damages sustained by the fraudulent act. However, in some cases, the court may reduce the damages if the individual or company who violated the false claims laws provided information about the violation to U.S. officials within 30 days, fully cooperated with the government's investigation, and had no prior knowledge of an investigation into the violation. In such cases, the court may assess a penalty of double the damages sustained by the government.