On May 2, 2016, an interim final rule was published regarding False Claim Act (FCA) civil penalties. A brief recount of this adjustment is necessary to get the scope of how large the adjustment is pursuant to 31 U.S.C. 3729 (nearly doubles). There is also another adjustment contemplated by formula beginning in January of 2017. Briefly summarized below are the increases in the FCA penalties and the link the Federal Register. When reading the individual amounts, think for every invoice or statement.
· For claims or statements made on or before October 23, 1996, the minimum penalty assessed is $5,000 and the maximum penalty is $10,000.
· For claims or statements made after October 23, 1996, but before August 1, 2016, the minimum penalty which may be assessed is $5,500 and the maximum is $11,000.
· For claims or statements made on or after August 1, 2016, but before January 1, 2017, the minimum penalty is $10,781 and the maximum penalty is $21,563.
· For claims or statements made on or after January 1, 2017, the amount will be larger than the year before or based on an inflationary increase. The notice of the minimum and maximum will be published in the Federal Register by January 15th of every year.
If you have any questions, please contact the author Christine Williams
Click here for the Federal Registry Link