False Claims Act (31 U.S.C. §§ 3729–3733)

The False Claims Act (FCA) is the single most powerful tool for combating fraud against the U.S. government. It’s also the foundation for nearly every major healthcare fraud case we see today.

Originally passed during the Civil War in 1863, the FCA was designed to stop suppliers from defrauding the Union Army. It has since evolved into the cornerstone of modern whistleblower law. The Act imposes liability on individuals or companies that knowingly submit false or fraudulent claims for payment to federal programs—such as Medicare, Medicaid, or TRICARE.

What makes the False Claims Act unique is its qui tam provision, which allows private citizens (known as relators) to file lawsuits on behalf of the government. If the case succeeds, the whistleblower may receive a percentage of the government’s recovery—an incentive that has driven billions in recoveries and deterrence of fraud.

Under the FCA, violators can face treble damages (three times the government’s loss) and additional civil penalties per false claim. Importantly, the law also protects whistleblowers from retaliation by their employers.

At Barrett Johnston, we’ve seen firsthand how the False Claims Act empowers individuals to expose fraud that would otherwise remain hidden. It remains a critical legal mechanism not only for justice, but for restoring trust in taxpayer-funded healthcare programs.