{"id":108,"date":"2007-10-07T11:37:21","date_gmt":"2007-10-07T11:37:21","guid":{"rendered":"http:\/\/www.whistleblowerlawyerblog.com\/2007\/10\/part_4_the_modern_false_claims_1.html"},"modified":"2021-06-11T17:52:58","modified_gmt":"2021-06-11T21:52:58","slug":"part_4_the_modern_false_claims_1","status":"publish","type":"post","link":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/part_4_the_modern_false_claims_1\/","title":{"rendered":"Part 4: The Modern False Claims Act–How It Works"},"content":{"rendered":"

This Part 4 by whistleblower lawyer blog<\/a> is a continuation of a detailed article for those wishing to know the specifics of the principal qui tam whistleblower<\/a> statutes, the federal False Claims Act<\/a> and the new state False Claims Acts.<\/a> It is taken from a recently published article by whistleblower lawyer blog<\/a> author Michael A. Sullivan, <\/em><\/a> and it is reprinted with the permission of the Georgia Bar Journal. <\/em><\/p>\n

This Part 4 focuses on the “modern” False Claims Act–since the 1986 Amendments. Before considering it, please note that, in September 2007, a bipartisan group of Senators introduced the “False Claims Act Correction Act,”<\/a> a bill to further “modernize” the False Claims Act with substantial improvements intended to restore the Act to Congress’ original intentions. We at whistleblower lawyer blog<\/a> will provide regular updates as that bill is considered by Congress.<\/p>\n

III. Overview of How the Modern False Claims Act Works (with Comparisons to State False Claims Acts, With the New Georgia State False Medicaid Claims Act as a Primary Example)<\/strong><\/p>\n

A. Conduct Prohibited<\/strong><\/p>\n

The federal False Claims Act imposes civil liability under several different theories, only four of which are generally used:<\/p>\n

First, the Act makes liable any person who knowingly presents, or causes to be presented, a “false or fraudulent claim for payment or approval” to the federal government. [30] <\/em> “Claim” is broadly defined to include not only submissions made directly to the federal government, but also “any request or demand . . . for money or property” made to a “contractor, grantee, or other recipient” if the federal government provides any portion of the money or property in question. [31]<\/em><\/p>\n

Second, the Act creates liability for using a “false record or statement” to obtain payment of a false claim. It imposes liability on any person who “knowingly makes, uses, or causes to be made or used, a false record or statement to get a false or fraudulent claim paid or approved by the government.” [32]<\/em><\/p>\n

Third, the False Claims Act imposes liability under a “conspiracy” provision. Any person who “conspires to defraud the Government by getting a false or fraudulent claim allowed or paid” is also liable under the Act. [33]<\/em><\/p>\n

Fourth, since the government also can be defrauded when a private entity underpays or avoids paying an obligation to the government, the modern Act contains what is known as a “reverse false claim” provision. It creates liability for any person who “knowingly makes, uses, or causes to be made or used, a false record or statement to conceal, avoid, or decrease an obligation to pay or transmit money or property to the Government.” [34] <\/em> For example, a company that is obligated to pay royalties to the government under an oil lease can be held liable if it uses false records or statements to pay less than what it owes.<\/p>\n

Georgia Act compared<\/strong>: The same bases of liability are set forth in new section 49-4-168.1(a), with regard to the Georgia Medicaid program. “Claim” is also broadly defined in the Georgia statute in section 49-4-168(1). In fact, the Georgia statute’s definition of “claim” was intended by the legislature to eliminate a point of dispute about the federal statute <\/em>[35]<\/em> by making clear that it applies to “claims” submitted not only to the government, but also to other persons or entities, as long as the Georgia Medicaid program provides any portion of the money or property at issue. <\/p>\n

The federal False Claims Act also creates a cause of action for damages for retaliation against employees who assist in the investigation and prosecution of False Claims Act cases. [36] <\/em> This cause of action belongs to the employee alone, and the government does not share in any recovery for retaliation.<\/p>\n

Georgia Act compared<\/strong>: New section 49-4-168.4 establishes a similar right to pursue a claim for retaliation in employment.<\/em>
\n Continue reading \u2192<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This Part 4 by whistleblower lawyer blog is a continuation of a detailed article for those wishing to know the specifics of the principal qui tam whistleblower statutes, the federal False Claims Act and the new state False Claims Acts. It is taken from a recently published article by whistleblower lawyer blog author Michael A. […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,8,3,11],"tags":[],"class_list":["post-108","post","type-post","status-publish","format-standard","hentry","category-false-claims-act","category-medicare-and-medicaid-fraud","category-recent-developments","category-state-false-claims-acts"],"yoast_head":"\nPart 4: The Modern False Claims Act--How It Works — Whistleblower Lawyer Blog — October 7, 2007<\/title>\n<meta name=\"description\" content=\"This Part 4 by whistleblower lawyer blog is a continuation of a detailed article for those wishing to know the specifics of the principal qui tam — October 7, 2007\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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