A new federal statute that took effect last week, the Fraud Enforcement and Recovery Act, broadened the Civil War-era False Claims Act. (FERA did several other things, too. See White House "fact sheet" here.)
The False Claims Act in general authorizes private citizens to sue for the federal government. Suits aim to recover civil penalties and treble damages. The statute entitles whistleblowers to a share of the government's recovery.
You qui tam mavens out there already know about the False Claims Act. But you may not have studied the FERA sections that broaden the Act. For your convenience, Blawgletter offers the following to show most of the relevant False Claims Act amendments (additions in blue; deletions in blue strikeout):
Sec. 3729. False claims
(A) knowingly presents, or causes to be presented,to an officer or employee of the United States Government or a member of the Armed Forces of the United Statesa false or fraudulent claim for payment or approval;(B2) knowingly makes, uses, or causes to be made or used, a false record or statement material togeta false or fraudulent claimpaid or approved by the Government;(C3) conspires to commit a violation of subparagraph (A), (B), (D), (E), (F), or (G)defraud the Government by getting a false or fraudulent claim allowed or paid;(D4) has possession, custody, or control of property or money used, or to be used, by the Government and, intending to defraud the Government or willfully to conceal the property,knowingly delivers, or causes to be delivered, lessproperty than the amount for which the person receives a certificate or receiptthan all of that money or property;(E5) is authorized to make or deliver a document certifying receipt of property used, or to be used, by the Government and, intending to defraud the Government, makes or delivers the receipt without completely knowing that the information on the receipt is true;(F6) knowingly buys, or receives as a pledge of an obligation or debt, public property from an officer or employee of the Government, or a member of the Armed Forces, who lawfully may not sell or pledge the property; or(G7) knowingly makes, uses, or causes to be made or used, a false record or statement material toto conceal, avoid, or decreasean obligation to pay or transmit money or property to the Government, or knowingly conceals or knowingly and improperly avoids or decreases an obligaion to pay or transmit money or property to the Government,
is liable to the United States Government for a civil penalty of not less than $5,000 and not more than $10,000, as adjusted by the Federal Civil Penalties Adjustment Act of 1990 (28 U.S.C. 2461 note; Public Law 104-410), plus 3 times the amount of damages which the Government sustains because of the act of that person., except that if the court finds that—
(2) REDUCED DAMAGES- If the court finds that–
(A) the person committing the violation of this subsection furnished officials of the United States responsible for investigating false claims violations with all information known to such person about the violation within 30 days after the date on which the defendant first obtained the information;(C) at the time such person furnished the United States with the information about the violation, no criminal prosecution, civil action, or administrative action had commenced under this title with respect to such violation, and the person did not have actual knowledge of the existence of an investigation into such violation;
the court may assess not less than 2 times the amount of damages which the Government sustains because of the act of the person.
(3) COSTS OF CIVIL ACTIONS- A person violating this subsection shall also be liable to the United States Government for the costs of a civil action brought to recover any such penalty or damages.
(1) the terms “knowing” and “knowingly”—
(A) mean that a person, with respect to information—and(B) require no proof of specific intent to defraudis required.;
(A) meansincludesany request or demand, whether under a contract or otherwise, for money or property and whether or not the United States has title to the money or property, that–(i)whichis presented to an officer, employee, or agent of the United States; or(ii) is made to a contractor, grantee, or other recipient, if the money or property is to be spent or used on the Government's behaf or to advance a Government program or interest and if United States Government–(I) provides any portion of the money or propertywhich isrequested or demanded;,or(II)if the Governmentwill reimburse such contractor, grantee, or other recipient for any portion of the money or property which is requested or demanded.; and(B) does not include requests or demands for money or property that the Government has paid to an individual as compensation for Federal employment or as an income subsidy with no restrictions on that individual's use of the money or property;
(3) the term "obligation" means an established duty, whether or not fixed, arising from an express or implied contractual, grantor-grantee, or licensor-licensee relationship, from a fee-based or similar relationship, from statute or regulation, or from the retention of any overpayment; and
(4) the term "material" means having a natural tendency to influence, or be capable of influencing, the payment or receipt of money or property.
(cd) Exemption From Disclosure.— Any information furnished pursuant to subparagraphs (A) through (C) of subsection (a) subsection (a)(2) shall be exempt from disclosure under section 552 of title 5.
(de) Exclusion.— This section does not apply to claims, records, or statements made under the Internal Revenue Code of 1986.
Sec. 3731. False claims procedure
(a) A subpena requiring the attendance of a witness at a trial or hearing conducted under section 3730 of this title may be served at any place in the United States.
(2) more than 3 years after the date when facts material to the right of action are known or reasonably should have been known by the official of the United States charged with responsibility to act in the circumstances, but in no event more than 10 years after the date on which the violation is committed,whichever occurs last.
(c) If the Government elects to intervene and proceed with an action brought under 3730(b), the Government may file its own complaint or amend the complaint of a person who has brought an action under section 3730(b) to clarify or add detail to the claims in which the Government is intervening and to add any additional claims with respect to which the Government contends it is entitled to relief. For statute of limitations purposes, any such Government pleading shall relate back to the filing date of the complaint of the person who originally brought the action, to the extent that the claim of the Government arises out of the conduct, transactions, or occurrences set forth, or attempted to be set forth, in the prior complaint of that person.
(cd) In any action brought under section 3730, the United States shall be required to prove all essential elements of the cause of action, including damages, by a preponderance of the evidence.
(de) 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.
Eskiddly oaten doten whoadoat skadeeten datten whatidenchew.