The federal False Claims Act (FCA) penalizes anyone who knowingly makes a fraudulent claim for compensation to the federal government. The penalties can be severe, frequently rising into the millions of dollars and potentially even a prison sentence. Raising an effective defense strategy is essential for anyone accused of violating the FCA.
The Steep Penalties for Violating the False Claims Act
There are four different types of penalties that defendants can face if they are convicted of violating the FCA:
Individually, each type of penalty is enough to deter making fraudulent claims against the government. Together, the costs of a conviction are extreme and draconian.
Treble Damages
First and foremost, the FCA levies treble damages – or three times the amount fraudulently requested – against the defendant. This means that, if the charge alleges that the defendant made $50,000 of false claim submitted, law enforcement will be looking to recover $150,000 in treble damages.
For alleged conduct that created lots of claims for government money, whether because it was extremely widespread or because it lasted for a long period, the underlying claims can easily surpass a million dollars. The FCA allows the government to demand three times what is owed.
Trebled damages are statutorily required by the FCA. The judge does not have the discretion to reduce them. However, 31 U.S.C. § 3729(a)(2) states that the...
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