Is there a False Claims Act provision governing collateral estoppel?
It is important to recognize that the FCA contains a highly stringent provision regarding collateral estoppel. Section 3731 (d) reads: Notwithstanding any other provision of law, the Federal Rules of Criminal Procedure, or the Federal Rules of Evidence, a final judgment rendered in favor of the United States in any criminal proceeding charging fraud or false statements, whether upon a verdict after trial or upon a plea of guilty or nolo contendere, shall estop the defendant from denying the essential elements of the offense in any action which involves the same transaction as in the criminal proceeding and which is brought under subsection (a) or (b) of section 3730. (Emphasis added.) Put succinctly, a negotiated plea, as well as a finding of guilt after trial, can foreclose the ability of a FCA defendant to defend the action if the prior criminal action involves “the same transaction.” This provision is one of the main reasons why it is so important that defendants facing both crimina
