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False Claims Act

BACKED BY PRESIDENT Abraham Lincoln, the False Claims Act (FCA) was enacted in 1863 and amended by Congress in 1986 to increase its implementation. The act is designed to deter fraud against the federal government by authorizing private citizens, known as qui tam relators, to file charges against any party attempting to collect payment from the government through fraudulent claims. The FCA covers a wide array of issues and requires only that a perpetrator did or would cause financial loss to the United States by “knowingly” committing fraud, whether through deliberate ignorance, disregard for proper practices, or outright falsification of claims. Examples of lawsuits filed under the FCA include: defense contractor overcharges, misrepresentation of Medicare healthcare services, and misuse of federal grant money from organizations ...

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