Is there a “voluntary disclosure” provision contained within the False Claims Act?
It is frequently overlooked that the FCA contains its own voluntary disclosure provision in ‘ 3729(a)(7)(A)-(C). Please note that all three provisions therein specified must be satisfied -an extremely difficult undertaking when negotiating with the Department of Justice. Compliance officers, in particular, should become conversant with this provision, which can result in some substantial benefit if properly invoked. Most importantly, in recognition of cooperation with the government, a court may assess “not less than 2 times the amount of damages which the Government sustains because of the act of the person.” Notice that this language suggests that no penalties will be assessed. In actuality, this section is never applied by courts; its real significance is in negotiations with DOJ where it can afford an effective argument for reducing ambitious government damage demands. It is important to remember that no voluntary disclosure to any government agency should be undertaken without tho
