| False Claims Act |
Article Index for False |
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| united states federal legislation | |
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PROVISIONS The Act establishes liability when any person or entity improperly receives from or avoids payment to the Federal government--tax fraud excepted. In summary, the Act prohibits: # Knowingly presenting, or causing to be presented to the Government a false claim for payment; # Knowingly making, using, or causing to be made or used, a false record or statement to get a false claim paid or approved by the government; # Conspiring to defraud the Government by getting a false claim allowed or paid; # Falsely certifying the type or amount of property to be used by the Government; # Certifying receipt of property on a document without completely knowing that the information is true; # Knowingly buying Government property from an unauthorized officer of the Government, and; # Knowingly making, using, or causing to be made or used a false record to avoid, or decrease an obligation to pay or transmit property to the Government. 1986 CHANGES (False Claims Act Amendments of 1986, Pub. L. 99-562, Oct. 27, 1986, 100 Stat. 3153) # The elimination of the "government possession of information" bar against Qui Tam lawsuits; # The establishment of defendant liability for "deliberate ignorance" and "reckless disregard" of the truth; # Restoration of the " Preponderance Of The Evidence " standard for all elements of the claim including damages; # Imposition of treble damages and civil fines of $5,000 to $10,000 per false claim; # Increased rewards for qui tam plaintiffs of between 15-30 percent of the funds recovered from the defendant; # Defendant payment of the successful plaintiff's expenses and attorney's fees, and; # Employment protection for whistleblowers including reinstatement with seniority status, special damages, and double back pay. EXAMPLE In March 2006 the US contractor, Custer Battles , was found liable for fraud in connection with contracts for the U.S. Government in Iraq . This was the first time that the False Claims Act has been used against a contractor in Iraq. Further accusations, still to be tried in court, relate to a US$16 million contract for securing Baghdad International Airport . SEE ALSO EXTERNAL LINKS
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