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U.S.
Code › Title 31 › Subtitle
III › Chapter 37 › Subchapter III › § 3729

31 U.S. Code § 3729 - False claims

US
Code

Notes

Authorities
(CFR)

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§ 3729.

False claims

(a) Liability for Certain Acts.—

(1)In general.—Subject
to paragraph (2), any person who—

(A)

knowingly presents, or causes to be presented, a false or
fraudulent claim for payment or approval;

(B)

knowingly makes, uses, or causes to be made or used, a
false record or statement material to a false or fraudulent claim;

(C)

conspires to commit a violation of subparagraph (A), (B),
(D), (E), (F), or (G);

(D)

has possession, custody, or control of property or money
used, or to be used, by the Government and knowingly delivers, or causes to be
delivered, less than all of that money or property;

(E)

is authorized to make or deliver a document certifying
receipt of property used, or to be used, by the Government and, intending to
defraud the Government, makes or delivers the receipt without completely knowing
that the information on the receipt is true;

(F)

knowingly buys, or receives as a pledge of an obligation
or debt, public property from an officer or employee of the Government, or a
member of the Armed Forces, who lawfully may not sell or pledge property;
or

(G)

knowingly makes, uses, or causes to be made or used, a
false record or statement material to an obligation to pay or transmit money or
property to the Government, or knowingly conceals or knowingly and improperly
avoids or decreases an obligation to pay or transmit money or property to the
Government,

is liable to the United States
Government for a civil penalty of not less than $5,000 and not more than
$10,000, as adjusted by the Federal Civil Penalties Inflation Adjustment Act of
1990 (28
U.S.C. 2461 note; Public
Law 104–410 [1]), plus 3
times the amount of damages which the Government sustains because of the act of
that person.

(2)Reduced damages.—If
the court finds that—

(A)

the person committing the violation of this subsection
furnished officials of the United States responsible for investigating false
claims violations with all information known to such person about the violation
within 30 days after the date on which the defendant first obtained the
information;

(B)

such person fully cooperated with any Government
investigation of such violation; and

(C)

at the time such person furnished the United States with
the information about the violation, no criminal prosecution, civil action, or
administrative action had commenced under this title with respect to such
violation, and the person did not have actual knowledge of the existence of an
investigation into such violation,

the court may assess not less
than 2 times the amount of damages which the Government sustains because of the
act of that person.

(3)Costs of civil actions.—

A person violating this subsection shall also be liable to
the United States Government for the costs of a civil action brought to recover
any such penalty or damages.

(b)Definitions.—For
purposes of this section—

(1) the terms “knowing” and
“knowingly”—

(A) mean that a person, with respect to information—

(i)

has actual knowledge of the information;

(ii)

acts in deliberate ignorance of the truth or falsity of
the information; or

(iii)

acts in reckless disregard of the truth or falsity of the
information; and

(B)

require no proof of specific intent to defraud;

(2) the term “claim”—

(A) means any request or demand, whether under a contract or
otherwise, for money or property and whether or not the United States has title
to the money or property, that—

(i)

is presented to an officer, employee, or agent of the
United States; or

(ii) is made to a contractor, grantee,
or other recipient, if the money or property is to be spent or used on the
Government’s behalf or to advance a Government program or interest, and if the
United States Government—

(I)

provides or has provided any portion of the money or
property requested or demanded; or

(II)

will reimburse such contractor, grantee, or other
recipient for any portion of the money or property which is requested or
demanded; and

(B)

does not include requests or demands for money or property
that the Government has paid to an individual as compensation for Federal
employment or as an income subsidy with no restrictions on that individual’s use
of the money or property;

(3)

the term “obligation” means an established duty, whether
or not fixed, arising from an express or implied contractual, grantor-grantee,
or licensor-licensee relationship, from a fee-based or similar relationship,
from statute or regulation, or from the retention of any overpayment; and

(4)

the term “material” means having a natural tendency to
influence, or be capable of influencing, the payment or receipt of money or
property.

(c)Exemption From Disclosure.—

Any information furnished pursuant to subsection (a)(2)
shall be exempt from disclosure under section 552 of title
5.

(d)Exclusion.—

This section does not apply to claims, records, or
statements made under the Internal Revenue Code of 1986.

(Pub.
L. 97–258, Sept. 13, 1982, 96
Stat. 978; Pub.
L. 99–562, § 2, Oct. 27, 1986,
100
Stat. 3153; Pub.
L. 103–272, § 4(f)(1)(O), July 5,
1994, 108
Stat. 1362; Pub.
L. 111–21, § 4(a), May 20, 2009,
123
Stat. 1621.)

[1]
So in original. Probably should be
“101–410”.

Historical and Revision Notes

Revised Section

Source (U.S. Code)

Source (Statutes at Large)

3729

31:231.

R.S. § 3490.

In the section, before clause (1), the words “a member of an armed force of
the United States” are substituted for “in the military or naval forces of the
United States, or in the militia called into or actually employed in the service
of the United States” and “military or naval service” for consistency with title
10. The words “is liable” are substituted for “shall forfeit and pay” for
consistency. The words “civil action” are substituted for “suit” for consistency
in the revised title and with other titles of the United States Code. The words
“and such forfeiture and damages shall be sued for in the same suit” are omitted
as unnecessary because of rules 8 and 10 of the Federal Rules of Civil Procedure
(28 App. U.S.C.). In clauses (1)–(3), the words “false or fraudulent” are
substituted for “false, fictitious, or fraudulent” and “Fraudulent or
fictitious” to eliminate unnecessary words and for consistency. In clause (1),
the words “presents, or causes to be presented” are substituted for “shall make
or cause to be made, or present or cause to be presented” for clarity and
consistency and to eliminate unnecessary words. The words “officer or employee
of the Government or a member of an armed force” are substituted for “officer in
the civil, military, or naval service of the United States” for consistency in
the revised title and with other titles of the Code. The words “upon or against
the Government of the United States, or any department of the United States, or
any department or officer thereof” are omitted as surplus. In clause (2), the
word “knowingly” is substituted for “knowing the same to contain any fraudulent
or fictitious statement or entry” to eliminate unnecessary words. The words
“record or statement” are substituted for “bill, receipt, voucher, roll,
account, claim, certificate, affidavit, or deposition” for consistency in the
revised title and with other titles of the Code. In clause (3), the words
“conspires to” are substituted for “enters into any agreement, combination, or
conspiracy” to eliminate unnecessary words. The words “of the United States, or
any department or officer thereof” are omitted as surplus. In clause (4), the
words “charge”, “or other”, and “to any other person having authority to receive
the same” are omitted as surplus. In clause (5), the words “document certifying
receipt” are substituted for “certificate, voucher, receipt, or other paper
certifying the receipt” to eliminate unnecessary words. The words “arms,
ammunition, provisions, clothing, or other”, “to any other person”, and “the
truth of” are omitted as surplus. In clause (6), the words “arms, equipments,
ammunition, clothes, military stores, or other” are omitted as surplus. The
words “member of an armed force” are substituted for “soldier, officer, sailor,
or other person called into or employed in the military or naval service” for
consistency with title 10. The words “such soldier, sailor, officer, or other
person” are omitted as surplus.

References
in Text

The Internal Revenue Code of 1986, referred to in subsec. (d), is classified
generally to Title 26, Internal Revenue Code.

Amendments

2009—Subsecs. (a), (b). Pub.
L. 111–21, § 4(a)(1), (2), added subsecs. (a) and (b) and struck out former
subsecs. (a) and (b) which related to liability for certain acts and defined
“knowing” and “knowingly”, respectively.

Subsec. (c). Pub.
L. 111–21, § 4(a)(4), substituted “subsection (a)(2)” for “subparagraphs (A)
through (C) of subsection (a)”.

Pub.
L. 111–21, § 4(a)(2), (3), redesignated subsec. (d) as (c) and struck out
heading and text of former subsec. (c). Prior to amendment, text read as
follows: “For purposes of this section, ‘claim’ includes any request or demand,
whether under a contract or otherwise, for money or property which is made to a
contractor, grantee, or other recipient if the United States Government provides
any portion of the money or property which is requested or demanded, or if the
Government will reimburse such contractor, grantee, or other recipient for any
portion of the money or property which is requested or demanded.”

Subsecs. (d), (e). Pub.
L. 111–21, § 4(a)(3), redesignated subsecs. (d) and (e) as (c) and (d),
respectively.

1994—Subsec. (e). Pub.
L. 103–272 substituted “1986” for “1954”.

1986—Subsec. (a). Pub.
L. 99–562, § 2(1), designated existing provisions as subsec. (a), inserted
subsec. heading, and substituted “Any person who” for “A person not a member of
an armed force of the United States is liable to the United States Government
for a civil penalty of $2,000, an amount equal to 2 times the amount of damages
the Government sustains because of the act of that person, and costs of the
civil action, if the person” in introductory provisions.

Subsec. (a)(1). Pub.
L. 99–562, § 2(2), substituted “United States Government or a member of the
Armed Forces of the United States” for “Government or a member of an armed
force”.

Subsec. (a)(2). Pub.
L. 99–562, § 2(3), inserted “by the Government” after “approved”.

Subsec. (a)(4). Pub.
L. 99–562, § 2(4), substituted “control of property” for “control of public
property” and “by the Government” for “in an armed force”.

Subsec. (a)(5). Pub.
L. 99–562, § 2(5), substituted “by the Government” for “in an armed force”
and “true;” for “true; or”.

Subsec. (a)(6). Pub.
L. 99–562, § 2(6), substituted “an officer or employee of the Government, or
a member of the Armed Forces,” for “a member of an armed force” and “property;
or” for “property.”

Subsec. (a)(7). Pub.
L. 99–562, § 2(7), added par. (7).

Subsecs. (b) to (e). Pub.
L. 99–562, § 2(7), added subsecs. (b) to (e).

Effective
Date of 2009 Amendment

Pub.
L. 111–21, § 4(f), May 20, 2009,
123
Stat. 1625, provided that:

“The
amendments made by this section [amending this section and sections 3730 to 3733 of this title]
shall take effect on the date of enactment of this Act [May
20, 2009] and shall apply to conduct on or after the date of enactment,
except that—

“(1)

subparagraph (B) of section
3729(a)(1) of title 31, United States Code, as added by subsection (a)(1),
shall take effect as if enacted on June 7,
2008, and apply to all claims under the False Claims Act (31 U.S.C. 3729 et
seq.) that are pending on or after that date; and

“(2)

section 3731(b) [probably should be section 3731] of title
31, as amended by subsection (b); section 3733, of title
31, as amended by subsection (c); and section 3732 of title
31, as amended by subsection (e); shall apply to cases pending on the date
of enactment.”

Increased Penalties for False Claims in
Defense Procurement

Pub.
L. 99–145, title IX, § 931(b), Nov. 8,
1985, 99
Stat. 699, provided that:

“Notwithstanding section
3729 of title 31, United States Code, the amount of the liability under that
section in the case of a person who makes a false claim related to a contract
with the Department of Defense shall be a civil penalty of $2,000, an amount
equal to three times the amount of the damages the Government sustains because
of the act of the person, and costs of the civil action.”

[Section
931(c) of Pub. L. 99–145 provided that section 931(b) is applicable to
claims made or presented on or after Nov.
8, 1985.]

This is a list of parts within the Code
of Federal Regulations for which this US Code section provides rulemaking
authority.

This list is taken from the Parallel Table of Authorities and
Rules provided by GPO
[Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the
database weekly. More limitations on accuracy are described at the GPO site.

20 CFR - Employees' Benefits

20 CFR Part
356 - CIVIL MONETARY PENALTY INFLATION ADJUSTMENT

32 CFR - National Defense

32 CFR Part
516 - LITIGATION

45 CFR - Public Welfare

45 CFR Part 30
- CLAIMS COLLECTION

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