{"id":357905,"date":"2017-01-12T14:30:16","date_gmt":"2017-01-12T19:30:16","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/employment\/whistleblowers\/what-is-the-false-claims-act.html"},"modified":"2024-03-19T13:21:26","modified_gmt":"2024-03-19T18:21:26","slug":"what-is-the-false-claims-act","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/employment\/whistleblowers\/what-is-the-false-claims-act.html","title":{"rendered":"What Is the False Claims Act?"},"content":{"rendered":"\n
\n \n
\n

What Is the False Claims Act? <\/h1>\n
\n
\n By Olivia Wathne, J.D.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last reviewed\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

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
\n

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

Wars take their toll on societies because of the lives affected, but also due to the economic damage they leave behind. As an example, the U.S. Civil War, which caused the deaths of nearly 2% of the U.S. population at the time, cost an estimated $4.2 billion<\/a>. To add insult to this exorbitant injury, many of these costs were due to fraudulent claims<\/a> to the federal government.<\/p>\r\n

During the war, Congress uncovered significant instances of bribery and corruption. In one case it found that the U.S. government had unknowingly repurchased arms it had discarded as obsolete. Considering the impact of such fraud on the United States government budget and the war effort itself, it’s no surprise that Congress passed the False Claims Act<\/a> (FCA) in 1863.<\/p>\r\n

The FCA, codified in the U.S.C (United States Code), remains in effect today. It operates under the oversight of the Department of Justice. It has provisions protecting whistleblowers<\/a> and incentives for those who report fraud in all areas of government spending. With recoveries of nearly $2 billion<\/a> in 2022, the FCA plays a vital role in protecting the government’s coffers.<\/p>\r\n

What Does the False Claims Act Do?<\/h2>\r\n

The FCA, among other things, is a federal law that imposes strict consequences for those who submit fraudulent claims. This can include:<\/p>\r\n