We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
The Legal Definition of the False Claim Act and Its Impact on Fraud
Definition & Meaning
The False Claims Act is a federal law established in 1863 to combat fraud against the U.S. government. It allows individuals, known as whistleblowers or relators, to file lawsuits on behalf of the government against those who commit fraud, particularly in areas involving federal funds. This law aims to protect taxpayer dollars by discouraging fraudulent claims and ensuring accountability in government contracts and programs.
Table of content
Legal Use & context
The False Claims Act is primarily used in civil law to address fraud against the federal government. It is applicable in various sectors, including:
Healthcare, such as fraudulent billing practices in hospitals and nursing homes
Defense contracting, including overcharging for military supplies
Government contracts related to natural resources and low-income housing
Individuals can utilize legal templates from US Legal Forms to assist in filing qui tam actions, but it is advisable to consult an attorney for complex cases.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A healthcare administrator discovers that a hospital is billing Medicare for services not rendered. They file a qui tam action under the False Claims Act to recover the funds.
Example 2: A contractor learns that a defense company is inflating costs on government contracts. They report this fraud and file a claim, potentially receiving a percentage of the recovered funds. (hypothetical example)
Relevant laws & statutes
The primary statute governing this area is the False Claims Act, codified at 31 U.S.C. §§ 3. Key amendments were made in 1986 to enhance protections for whistleblowers and increase their financial rewards.
Comparison with related terms
Term
Definition
Key Difference
Qui Tam
A lawsuit filed by a whistleblower on behalf of the government.
False Claims Act encompasses qui tam actions.
Fraud
Intentional deception to secure unfair or unlawful gain.
Fraud is the basis for claims under the False Claims Act.
Common misunderstandings
What to do if this term applies to you
If you suspect fraud against the federal government, consider the following steps:
Document your findings and gather evidence.
Consult with an attorney experienced in False Claims Act cases.
Explore US Legal Forms for templates to assist in filing a qui tam action.
Professional legal help is recommended for complex cases to ensure proper handling of your claim.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.