The False Claims Act, 31 U.S. C. § 3729, et seq., is the federal government’s most important and most effective tool for fighting fraud. This post provides a high-level overview of the False Claims Act and highlights key aspects of this statute.
The False Claims Act is a Civil War-era statute passed in response to concerns that contractors and suppliers were regularly defrauding the Union Army by selling items such as moth-eaten blankets, injured cavalry horses and boxes of sawdust instead of guns. In 1863, at President Lincoln’s urging, Congress passed the False Claims Act, known as “Lincoln’s Law” since its passage.
Despite its important beginnings, the False Claims Act remained a little utilized tool until recently. The False Claims Act’s period of dormancy ended in 1986 when Congress passed amendments to the False Claims Act that expanded its scope significantly and breathed new life into what has now become the government’s primary enforcement tool against fraud. Amendments in 2009 and 2010 further strengthened this statute.
As it presently stands, the reach of the False Claims Act generally extends to individuals and entities who seek payment or reimbursement from the government. Those most likely to find themselves dealing with False Claims Act-related issues include healthcare providers seeking reimbursement from federal healthcare programs or government contractors who are paid to provide goods and services to the government. As...
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