What is covered by the False Claims Act?
Broadly speaking, anyone who makes a false or fraudulent claim upon federal dollars, or who causes another to do so, has engaged in conduct covered by this law. In addition, anyone who falsely appropriates government property or, delivers to the government a service or product that is substandard or defective, may have made a false claim for payment for such a service. Congress drafted the statute to cover most conduct that may adversely affect the federal treasury. • Q: What are the penalties for making a False Claim or Fraudulent Claim (for breaking this law)? A: A person who makes a false or fraudulent claim is liable to the United States Government for a civil penalty “of not less than $5,000.00 and not more than $11,000.00” for each false claim submitted. 31 USC § 3729 (1999). Moreover, the act requires the court to impose a penalty equal to three times the amount of damage sustained by the government. This amount may be reduced to two times the damage sustained by the government
