False Claims Act Flashcards, test questions and answers

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What is False Claims Act?

The False Claims Act (FCA) is a federal law that prohibits individuals and businesses from defrauding the United States government. The purpose of the FCA is to protect taxpayers from fraud, waste, and abuse in government programs or contracts. The FCA allows private citizens to file civil lawsuits against those who have violated the act on behalf of the government. If successful, these relators can receive a portion of any settlement or award received by the government in exchange for their efforts. The FCA applies to any person or business that makes false claims when dealing with federal funds. This includes contractors, grantees, subcontractors, health care providers and others who submit false claims for payment to any branch of the federal government. These false claims can include overcharging for services provided, submitting bills for services not rendered, submitting fraudulent documents or records as evidence of performance on a contract or grant agreement and other types of fraudulent acts associated with obtaining funds from the federal government.In addition to allowing private citizens to file civil suits against violators on behalf of the government (known as qui tam lawsuits), there are also criminal penalties associated with violations under this act which can include fines up to $11,000 per violation and imprisonment up to five years per violation. The False Claims Act serves an important role in protecting taxpayer dollars from fraud and abuse within our nation’s programs and contracts funded by taxpayer money. It provides both civil remedies through qui tam lawsuits where relators are rewarded for their efforts in filing suit on behalf of the government as well as criminal penalties for those found guilty under this act.