{"id":357894,"date":"2017-01-17T14:22:24","date_gmt":"2017-01-17T19:22:24","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/employment\/whistleblowers\/false-claims-act-penalties.html"},"modified":"2024-04-09T15:01:16","modified_gmt":"2024-04-09T20:01:16","slug":"false-claims-act-penalties","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/employment\/whistleblowers\/false-claims-act-penalties.html","title":{"rendered":"False Claims Act Penalties"},"content":{"rendered":"\n
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False Claims Act Penalties<\/h1>\n
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\n By Lisa Burden, J.D.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

The False Claims Act<\/a> (FCA) is a federal law allowing the federal government, and even private individuals<\/a>, to sue those making fraudulent financial claims against the government.<\/p>\r\n

The U.S. Department of Justice<\/a> collected more than $2.68 billion in judgments and settlements<\/a> from civil cases involving false crimes and fraud in the fiscal year ending Sept. 30, 2023. The program has collected more than $75 billion since 1986.<\/p>\r\n

Healthcare fraud is a leading cause of FCA settlements and judgments. The healthcare industry accounted for $1.8 billion of financial recovery in FY 2023. The federal False Claims Act was expanded in 1986 to include federal healthcare programs, such as Medicare and Medicaid programs.<\/p>\r\n

The penalties for knowingly submitting a fraudulent claim can be severe. The FCA imposes treble damages<\/a> and penalties for violations of the FCA.<\/p>\r\n

Below, you’ll find a general overview of FCA penalties and how the False Claims Act works to deter fraud.<\/p>\r\n

False Claims Act Overview<\/h2>\r\n

The federal government enacted the False Claims Act in 1863 in response to defense contractor fraud during the Civil War.<\/p>\r\n

For a claim to be fraudulent, the offender must knowingly submit a false statement or invoice or cause someone else to submit it. An inadvertent clerical mistake isn’t fraud unless someone knew there was an error and failed to correct it. The FCA defines \u201cknowingly<\/a>" to include:<\/p>\r\n