Any contractor who works on public projects knows that the federal False Claims Act, 31 U.S.C. § 3729 (the “FCA”), can pose serious risks for the unwary. The FCA imposes liability on any person who submits a claim to the federal government that he or she knows is false. “Knowingly” under the FCA means that a person, with respect to information, “(1) has actual knowledge of the information; (2) acts in deliberate ignorance of the truth or falsity of the information; or (3) acts in reckless disregard of the truth or falsity of the information.” Innocent mistakes or negligence are not actionable under the FCA. Fines for violations of the FCA include $5,500 to $11,000 per violation, plus three times the amount of damages which the government sustains resulting from the false claim.
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