Congress enacted the first False Claims Act in 1863 in response to widespread procurement fraud in Civil War defense contracts. The False Claims Act was a little used anti-fraud enforcement vehicle for over a century before Congress re-invigorated the Act with sweeping amendments in 1986.
As currently structured, the False Claims Act subjects those who knowingly submit, or cause another person or entity to submit, false claims for payment of government funds to liability in the form of three times the government’s damages plus civil penalties of $5,500 to $11,000 per false claim. See 31 U.S.C. §§ 3729-3733.[1]
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