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Elements Of False Claims Act
Last Updated on: 29th March 2025, 01:57 am
ELEMENTS OF THE FALSE CLAIMS ACT
If you are accused of violating the False Claims Act, you face possible fines, a criminal record, and even prison. These consequences can disrupt your family life and your finances, and can make it difficult for you to move forward with your career. We are Spodek Law Group, a nationwide federal defense law firm created by Todd Spodek, and our goal is simple: we want to protect you.
WHAT IS THE FALSE CLAIMS ACT?
The False Claims Act (Department of Justice – False Claims Act) is a federal law that was created to punish anyone who submits a false or fraudulent claim to the United States government. The law covers situations where an individual or company knowingly bills the government for products, services, or grants that were never provided as promised.
This law is enforced under 31 U.S.C. §§ 3729 – 3733. If you break this law, you may be sued by the government or by a private person who was acting as a whistleblower. You could be required to pay huge financial penalties, and you could face jail time, if the government shows you acted knowingly and caused losses.
CORE ELEMENTS THAT THE GOVERNMENT MUST PROVE
1. A Claim that was False or Fraudulent
A claim that was false or fraudulent is the first element. This means the government must show that an invoice or request for payment was based on an untrue statement. This claim could be for goods or services that were not provided, or for inflated amounts. If prosecutors can show you filed a phony invoice, they will argue it was fraud. As a result, you might end up paying major fines.
2. A Person who was Acting Knowingly
A person who was acting knowingly is the second element. The government needs to prove that you knew, or should have known, that the information in the claim was false. If the court believes you submitted it recklessly, you can be found liable. If you are found liable, you could face financial ruin. Once a judgment is entered, you might owe triple the government’s losses.
3. Materiality that was Significant to the Government’s Decision
Materiality that was significant is the third element. This means the false statement had to matter to the government’s decision to pay. If the misleading claim had no real impact, then the law may not apply. If the claim was significant, the judge or jury may hold you responsible for the full amount of losses, plus extra penalties.
4. Submission that was Made to the Government or Its Agent
Submission that was made to the government is the fourth element. The False Claims Act applies only if the claim was presented to a federal agency, a government program, or a contractor working for the government. If the claim never reached the government, this law may not apply. If the government paid money because of your submission, you could owe significant amounts in restitution.
5. Damages that Were Caused by the False Claim
Damages that were caused by the false claim are the final element. The government must show that it suffered some loss, or that it paid more than it should have. If the government can show a loss, you face the real possibility of repaying several times the amount involved, which can result in massive debt for you or your business.
POTENTIAL PENALTIES IF YOU ARE FOUND LIABLE
The civil penalties for breaking the False Claims Act can include monetary fines ranging from thousands of dollars up to tens of thousands of dollars, per violation. You may also owe triple the government’s damages. If prosecutors decide to pursue criminal charges, you might face prison, in addition to these civil fines. A felony conviction can cause you to lose key rights, like the ability to hold certain licenses or practice in certain professions.
COMMON ACTIONS THAT TRIGGER AN INVESTIGATION
- Overbilling the government for services that were never delivered
- Charging more for services that were provided but at inflated prices
- Using substandard materials in government contracts and misrepresenting their quality
- Receiving money that was intended for qualified recipients but lying about eligibility
If the Department of Justice believes you performed any of these actions, it can investigate. That investigation can lead to subpoenas, searches, and the seizure of property. Once you are under investigation, you may feel pressure to cooperate and might face intimidation from federal agents.
WHY YOU NEED A STRATEGY
You might think you can explain your side of the story without a lawyer. That is a mistake. Prosecutors who are experienced with the False Claims Act have studied these cases for years, and they know how to frame the evidence against you. If you do not build a legal defense, you risk severe punishments. Once a conviction is final, you could be stuck with a criminal record that harms your future.
We do not accept excuses, and neither will the courts. If you want to defend yourself and avoid crippling fines, you need an action plan. We are here to identify your critical gaps and push you to overcome them. When the government has evidence that was collected from third parties, we want to examine whether law enforcement violated your rights. Evidence that was seized unlawfully may be thrown out, which weakens the prosecutor’s case and opens the door to a favorable outcome for you.
DEFENSE STRATEGIES THAT WE MAY USE
Lack of Knowledge
If you did not know the claim was false, you might avoid liability. We will seek evidence that shows you relied on someone else’s numbers or trusted what you believed were valid documents. If the court is convinced you had no intention to commit fraud, you can be cleared.
Materiality Issues
If the government cannot show it would have rejected the claim if it had known the truth, then the false statement may not rise to the level of a violation. If the court recognizes that the claim was not essential, you could see charges dismissed.
Coercion or Honest Mistake
If you can show you were forced or threatened to submit false information, that evidence can help you. If your error was an honest mistake, then we can present that argument. If a judge or jury buys it, your penalties can be reduced or dropped entirely.
HOW SPODEK LAW GROUP CAN HELP YOU
We Are Committed to Your Defense
We are Spodek Law Group, and we have extensive experience with federal cases. Our team can begin investigating your situation right away, looking at all the details surrounding your charges. We care about you, but we will not sugarcoat the truth. If you made an error, we will call it out. If you do not cooperate, we will push you harder. Our priority is to get you the best possible result.
We Develop a Systemic Approach
When you face allegations under the False Claims Act, we do not rely on guesswork. We gather proof, speak with witnesses, and review contracts or billing statements that were used in your transactions. Once we see the bigger picture, we exploit every possible weakness in the prosecution’s argument. We leave no stone unturned in building your defense. If there is a legal path that helps you, we will find it.
We Are Available 24/7
We understand that a single phone call from a federal agent can upend your entire life. We offer the convenience of 24/7 phone consultations to address urgent concerns. If you are ready to fight for your future, then we are here to help you do it. If you are not ready, we will tell you to get ready, because you do not have time to waste.
FREQUENTLY ASKED QUESTIONS
| Question | Answer |
|---|---|
| Can you go to prison for a False Claims Act violation? | Yes. If the government treats the violation as a criminal offense, you can go to prison. Once you have a felony record, many career paths close off to you. |
| What if I did not intend to defraud the government? | If you truly had no knowledge of fraud, then you have a defense. We can gather proof showing you acted in good faith. If the court believes it, the charges might be dropped. |
| How soon should I contact a lawyer? | Right away. Early intervention can prevent escalation of charges. If you wait too long, the government may build a stronger case against you. |
CONTACT US FOR A RISK-FREE CONSULTATION
If you have received a subpoena or if you suspect that you are under federal investigation, do not wait. Call us now for a risk-free consultation. We have offices throughout the USA, and we can discuss your case no matter where you live.
We are Spodek Law Group. We will be harsh if we sense you are not taking this seriously, and we will be relentless in defending you. We are prepared to speak with you about possible solutions, and if there is a path to success, we will help you find it. Every day that passes is a day the government can use to build a stronger case. Contact us now, before your options disappear.
Disclaimer: This article is not legal advice. No attorney-client relationship is formed by reading this content or contacting our office. Every case is unique, and you should get personalized advice from an attorney who is licensed in your state. If you have questions about how federal law applies to you, call us directly, and we will help you understand your rights and options. We may work with affiliated lawyers in various states.