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What Is The Penalty For Violating the False Claims Act?

Some companies regularly submit claims that are false to the federal government in an effort to get money to which they are not entitled. This is not a wise practice. The federal False Claims Act is a law that lets private individuals and the government to sue people and entities that submit false claims to the government.

Individuals or companies who are either deliberately ignorant of the falsehood of their claims or who have knowledge that they are false may be liable under the False Claims Act. The penalties for violating the act can be serious. If you have knowledge that your employer is committing fraud against the government, the legal team at Swartz Swidler might be able to help you.

What are the FCA civil penalties and potential damage awards?

Individuals and entities that submit false claims to the government face a civil penalty that ranges from $5,000 to $10,000 per claim that was filed. These penalties are adjusted each year for inflation. As of 2017, businesses or individuals who submit false claims face penalties that range from $10,957 to $21,916 per claim. The government is also able to recover triple the amount of damages that it lost because of the false claim.

This means that a hypothetical business that submits four false claims in the amount of $25,000 each could be penalized with fines of up to $21,916 for each of the four claims along with treble damages of $75,000 per filed false claim. This could total $387,664 that the company could be forced to pay to the government for the $100,000 total in false claims that it submitted.

Schedule an appointment today. Call (856) 685-7420 or

Schedule an appointment today.
Call (856) 685-7420 or

Crimes related to FCA violations

In many cases, actions that violate the FCA also violate the criminal laws. This means that a company or individual who submits false claims may face criminal penalties and potential imprisonment in addition to being assessed civil penalties and damages. Some of the crimes that may be involved in FCA violations include the following:

  • Forgery
  • Bribery
  • Theft
  • Identity theft
  • Insurance fraud
  • Money laundering

What to do

If you have knowledge that your employer has been submitting false claims to the government, and the knowledge has not been made public, you might want to talk to an experienced employment lawyer. Fraudulent claims that are submitted to the government take away tax dollars that could otherwise be used to help everyone. Contact Swartz Swidler to schedule an appointment so that you can learn more about what you might be able to do.

Most Frequently Asked Question: Do I Have A Case?

While it is true that every case is different, The law is pretty clear in most cases. The best way to determine if you have a case is to contact one of our attorneys. For more information check out the FAQ below or visit our FAQ Page

Most Frequently Asked Question:
Do I Have A Case?

While it is true that every case is different, The law is pretty clear in most cases. The best way to determine if you have a case is contact one of our attorneys. For more information on a just a few scenarios checkout the flip box FAQ below or visit our FAQ Page.

Our Locations

Cherry Hill Headquarters

1101 Kings Hwy N
Suite 402
Cherry Hill, New Jersey 08034

Phone: (856) 685-7420
Fax: (856) 685-7417

Philadelphia Satellite Office

123 South 22nd Street
Philadelphia, PA 19107

Phone: (215) 995-2733

Our Locations

Cherry Hill Headquarters

1101 Kings Hwy N
Suite 402
Cherry Hill, New Jersey 08034

Phone: (856) 685-7420
Fax: (856) 685-7417

Philadelphia Satellite Office

123 South 22nd Street
Philadelphia, PA 19107

Phone: (215) 995-2733