The False Claims Act is a candle of hope for the taxpayers of the U. S. of America who are sick and tired of their taxes being taken from under their noses by central authority contractors. It is a crucial tool in the hands of American taxpayers with the power to make billions of bucks of money that goes within the pockets of the govt contractors each year return to where it belongs.
Under the Fake Claims Act, those persons who intentionally submit or prompt someone else or entity to submit false claims for payment of government funds will be responsible to pay 3 times of the government’s damages and also civil penalties ranging between $5,500 and $11,000 per false claim.
Tax crime is however not included in the Fake Claims Act. Section 3729 (e) of the aforementioned act states the Act “does not apply to claims, records, or statements made under the Internal Income Code.” As such any fraud related to taxes will not come under the Fake Claims Act. For this, there are IRS related laws that will look into the problem and submit penalties for wrongdoers.
The False Claims Act has provisions for ‘qui tam’. The qui tam is a unique feature in the laws of our country. Qui tam permits standard citizens of the country to sue on behalf of the government if she has proof of crime in central authority programs and contracts so that the thieved funds can be recovered.
The voter who goes thru the effort of filing a qui tam case can be awarded compensation for his risk and work done. The citizen whistle blowers may be awarded a part of the funds he helps in recovering usually something between 15% and twenty five percent. After a qui tam suit has been filed, it usually remains under seal during which time the Office of Justice investigates and decides whether to join the action.
Learn the significance of the Federal False Claims Act to stop Medicaid fraud. Read on the piece of Karylle Piesse to understand why.
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