False Claims Act

The Federal False Claims Act is the government’s most commonly used tool in combating fraud against the federal government. Congress enacted the Federal False Claims Act during the Civil War to combat fraud by suppliers to the Union Army. Thereafter, the statute was used relatively rarely until it was amended in 1986. The 1986 amendments were motivated by highly publicized accounts of abuses in the defense contracting industry.

The amendments significantly expanded the role of—and increased financial incentives for—“whistleblowers” and made it easier for the government to bring actions against persons and entities alleged to have submitted false or fraudulent claims to the federal government. The government’s reliance on the False Claims Act has increased dramatically in the wake of those amendments. From 1986 to 2013, the federal government recovered more than $35 billion as a result of cases filed under the False Claims Act. Those cases have spanned a wide variety of industries, including the health-care, defense, energy, construction, and housing sectors, among many others. Angeli & Calfo has assisted clients in numerous civil and criminal False Claims Act investigations.

Representative Cases

• Represented a major national health care provider in a federal criminal investigation into allegedly fraudulent Medicare billing practices. After a thorough internal investigation and presentation to the government, the Justice Department ultimately declined prosecution.
• Defending a Fortune 200 company in a federal civil False Claims Act case alleging illegal payments to physicians.
• Representing employee of a large manufacturing company in connection with a federal criminal investigation into allegedly falsified results of testing performed on parts sold to the government.
• Represented a large defense contractor in connection with an investigation into allegations of falsified test records relating to aircraft parts.
• Represented an individual in connection with an investigation into Medicare billing practices allegedly involving unqualified and unlicensed technicians. After a thorough investigation and months of negotiation, no criminal or civil action was brought.