18 U.S.C. § 287 - False Claims Act
18 U.S. Code 287, also known as the False Claims Act, stipulates that anyone who knowingly presents a false, fictitious, or fraudulent claim to any person or officer in the civil, military, or naval service of the United States can face imprisonment for up to five years and a substantial fine.
The federal government takes the enforcement of the False Claims Act, a law designed to protect government funds and property, very seriously. They use it to threaten healthcare organizations with harsh penalties after an investigation brought by the Department of Justice (DOJ), whistleblowers, or private citizens (realtors) who file a qui tam lawsuit.
Simply put, 18 U.S.C. 287 is a federal law that prohibits making false claims to the United States government. It applies to claims made to any government department, agency, or officer.
Violation of the False Claims Act carries serious consequences. To secure a conviction, the federal prosecutor must prove, beyond a reasonable doubt, all the elements of the offense.
For instance, the prosecutor must establish that the defendant made a claim to the government, was aware of its falsity, and intended to violate the law.
The False Claims Act was passed in 1863 to protect government funds and property. Most false claims litigation involves violations of Section 287. Notably, conspiring with others to violate this statute carries the same maximum sentence as the underlying crime
The scope of False Claims Act liability has increased as whistleblowers report alleged violations. Since the DOJ and federal prosecutors review all complaints, healthcare providers often face scrutiny.
Suppose you, or someone you know, is under investigation or has been indicted in a false, fictitious, or fraudulent claims case under Title 18 of the United States Code, Section 287. In that case, our experienced federal criminal defense attorneys can help you.
What is the False Claims Act?
As noted, 18 U.S.C. 287 makes it a federal crime to submit false, fictitious, or fraudulent claims. This law is designed to protect the government against those who would cheat or mislead it in administering its programs and has been used to fight fraudulent claims filed under numerous federal programs, including Medicare and Medicaid.
The False Claims Act applies to individuals or businesses that have a contract and pay for services from the United States government. This federal law prohibits any person, person, business, or contractor from:
- Knowingly submit, or
- Cause to submit,
- A false or fraudulent claim
- With the intent was to receive payment from the federal government.
Submitting a false or inaccurate claim occurs when it is submitted with the knowledge that reasonable due diligence was not performed.
This means criminal liability under the False Claims Act occurs when someone submitting the claim should have known the correct billing code, for example. Still, they submitted an incorrect code anyway out of negligence.
Related 18 U.S.C. 286, Conspiracy to defraud the Government with respect to claims says, "Whoever enters into any agreement, combination, or conspiracy to defraud the United States, or any department or agency thereof, by obtaining or aiding to obtain the payment or allowance of any false, fictitious or fraudulent claim, shall be fined under this title or imprisoned not more than ten years, or both."
False Claims Act - Quick Facts
- This law is designed to criminalize the act of attempting to obtain money, goods, or services from the United States government.
- Federal false claims typically involve any type of deception, fraud, or false representations to obtain money from the government.
- The prosecutor must prove you knowingly intended to deceive the government to get payment you weren't entitled to receive.
- Good faith mistakes for potential entitlement for payment are not typically sufficient for criminal prosecution under the statute.
- In the context of this law, "false" means deliberately untrue and unlawful. An action with intent to perpetrate a betrayal of trust or fraud. It's done or said to fool or deceive someone or adjusted or made so as to deceive.
- Fictitious means false, feigned, or pretended. It's not real or true and was made up or fabricated.
- Fraudulent means it was tainted by fraud. It means it was done with a purpose or design to carry out fraud. It involves deception, especially criminal deception.
What are Related Federal Laws?
18 U.S. Code Chapter 15, Claims and services in matters affecting government, has several related laws, including the following:
- 18 U.S.C. 285 - Taking or using papers relating to claims.
- 18 U.S.C. 286 - Conspiracy to defraud the Government with respect to claims.
- 18 U.S.C. 287 - False, fictitious, or fraudulent claims.
- 18 U.S.C. 288 - False claims for postal losses.
- 18 U.S.C. 289 - False claims for pensions.
- 18 U.S.C. 290 - Discharge papers withheld by the claim agent.
- 18 U.S.C. 291 - Purchase of claims for fees by court officials.
- 18 U.S.C. 292 - Solicitation of employment and receipt of unapproved fees concerning Federal employees' compensation
What are Penalties?
The application of the Federal Sentencing Guidelines is important in false claims cases as the advisory guideline sentencing range for a particular defendant will vary depending on the loss amount, which is the amount of money claimed against the United States.
The guidelines calculate the loss amount as the total amount of intended loss rather than actual loss. Thus, even if the defendant's claim for payment was flagged for possible fraud and never actually paid out, the defendant can still be held responsible for the total amount of the claim as an enhanced offense level under the sentencing guidelines.
Notably, the maximum punishment allowable under the statute is five years in federal prison. The federal judge does not have the discretion to impose a sentence in excess of the congressionally mandated maximum of five years.
What are the Possible Defenses?
Suppose you were charged with violating 18 U.S.C. 287 False Claims Act. In that case, a federal criminal defense lawyer can use several strategies to obtain the best possible outcome, as discussed below.
Perhaps we can argue there was a lack of knowledge or intent to defraud. Even if it can be established that the defendant was not entitled to the money or services claimed against the United States, there is still the issue of whether the defendant had a good faith belief that they were entitled to payment.
Perhaps the defendant had simply been mistaken about the terms of a government contract or negligently presented a claim demanding more money than was actually owed.
These cases should not be prosecuted under Section 287 as the defendant lacked fraudulent intent. Other possible defenses might include duress, entrapment, or government misconduct.
Where the government relies on an informant or other unreliable source during its investigation, evidence might also potentially be suppressed to undermine the government's case through a formal motion to suppress before the District Court.
In the prefiling stage of the case, we can negotiate a resolution with the government before the indictment, thus lowering the punishment in most cases.
If necessary, we can litigate your matter in a federal jury trial to effectively communicate your innocence and attempt to obtain an acquittal. Contact us for a free initial consultation to determine which options will give you the best chance for a successful outcome in these serious federal criminal matters.
For more information, contact our criminal defense law firm, Cron, Israels & Stark, based in Los Angeles, California.
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