False Claims Act

Definition - What does False Claims Act mean?

The False Claims Act, also referred to as the Lincoln Law, is the main law that the government uses against individuals and private companies to stop them from placing any fraudulent claims into a government agency.

Whenever a business or individual is found to have filed a false claim with the government, they would be open to charges of violating the False Claims Act.

Justipedia explains False Claims Act

The false claim(s) could be of any nature, ranging from the type and volume of raw materials used by a government contractor, to the overall financial situation of a person applying for welfare.

The severity of the sentence or fine that would result from such a claim would depend on the size and severity of the fraud, and on how long it had occurred for. It would be considered a criminal offense, and sentences could include a large fine, repayment and incarceration.

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