Overview

The False Claims Act provides for the award of treble damages and penalties against companies or individuals who knowingly present false statements or claims for payment to the United States government. The basic elements of liability and damages under the Act are explained briefly below.

1. False Statements or Claims

The Act requires proof that a false statement or claim was submitted, directly or indirectly, to the government. Examples of false statements include false representations regarding goods or services allegedly provided, false certifications regarding performance on a contract, or false progress reports. False claims are simply the actual claims for payment submitted to the government, such as invoices, progress payment requests, or other bills requesting payment. False statements can be found in any communications with the government that ultimately provide a basis for a claim to be paid or approved.

2. Payment

All types of false claims are covered by the Act. It is generally not significant whether a false claim is submitted to the U.S. government itself or through a third party. So long as the claim is ultimately presented to and paid by the United States, it should be covered. Indeed, even representations that are designed to reduce an obligation to pay the government (with the exception of tax obligations) are covered by the Act.

3. Knowledge Requirement

The Act requires proof that the false statement or claim have been made “knowingly.” The term “knowingly” is defined in the Act to include “actual knowledge,” “reckless disregard” or “deliberate ignorance” of the truth. No proof of specific intent is required.

4. Damages

The Act provides for the award of treble damages plus penalties from $13,508 to $27,108 for each violation of the Act.