Qui Tam

Part 4: How the False Claims Act Works After the 2009-2010 Amendments (with Comparisons to Some State False Claims Acts)

By Finch McCranie, Esq.

This Part 4 of a six part summary explains how the federal False Claims Act works, after Congress amended it three times in 2009-2010. It also discusses similar provisions of some state False Claims Acts.

This is an update from a previously published article by whistleblower lawyer blog author Michael A. Sullivan.

III. Overview of How the Modern False Claims Act Works (with Comparisons to Some State False Claims Acts)

A. Conduct Prohibited

The federal False Claims Act imposes civil liability under several different theories, only four of which were generally used before FERA. FERA has added an additional theory of liability for retention of overpayments, which now will likely be used quite often in health care cases:

First, the Act makes liable any person who knowingly presents, or causes to be presented, a ?false or fraudulent claim for payment or approval.?

Second, the Act creates liability for using a ?false record or statement.? It imposes liability on any person who ?knowingly makes, uses, or causes to be made or used, a false record or statement material to a false or fraudulent claim.?

?Claim? is broadly defined, and is not limited to submissions made directly to the federal government:

Full post as published by Whistleblower Lawyer Blog on December 07, 2010 (boomark / email).