The Fictitious Claims Act stipulates a monetary penalty of three times the total amount of damage incurred by the government, along with substantial statutory fines for each false claim made. Each individual statement, invoice, or record submitted to the government, in violation of the Fictitious Claims Act, is considered as a separate false claim.
The company could also face criminal penalties, either against the company itself or the individuals responsible for organizing and overseeing the fraud. Criminal penalties may take the form of fines, seizure of assets, or even imprisonment.
In the most severe instances, the company may be barred from future government contracts. For instance, the government could disqualify a healthcare provider from participating in the Medicare and Medicaid programs, or blacklist a defense contractor. The duration and permanence of these sanctions depend on the nature and seriousness of the fraud.
If the defendant reaches a settlement with the government, the penalties are often reduced through negotiation in exchange for the company’s cooperation. Typically, the settling company will also be required to enter into a corporate integrity agreement, allowing government supervision to ensure future compliance.
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