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“Double Down” on False Claims Act Penalties

Attention all contractors! Effective August 1, 2016, the U.S. government adjusted the penalty amounts applicable to civil penalties to include the penalty assessed under the False Claims Act (31 U.S.C. 3729(a)). The new penalty has increased from $11,000 to a maximum penalty of $21,563. Additionally, the penalty is assessed on top of “3 times the amount of damages which the Government sustains because of the act of that person,” unless reduced in court. This increase in penalties is actually a “catch up” by the government. The government has taken the position that to ensure an effective deterrent is maintained, and. Read More.