litigation for over two decades) and discusses recent amendments to the FCA intended to strengthen the statute. Second, the article will discuss the qui tam provisions and practical FCA’s considerations for qui tam relators. The final section will address common issues of concern with FCA litigation and common theories of liability. I. History of the False Claims Act A. Enactment of False Claims Act and the 1943 Amendments The False Claims Act 31 U.S.C. §§3729-3730, was enacted by Congress in (“FCA”), 1863 at the request of President Abraham Lincoln, in an effort to combat profiteering by Union Army suppliers. The Act provided both civil and criminal penalties for fraudulent claims submitted to the United States. Initially known as the the FCA was designed to “Informer’s Act,” combat defense procurement fraud by providing to any private citizen the right to file a civil action against anyone who submitted a false claim for payment to the United States Government. Under the original FCA, the private citizen as a private attorney (“relator”) acted essentially general by bringing a civil suit and was rewarded by receiving fifty percent of all moneys recovered in the lawsuit. These civil suits were known by the tam pro domino rege quam pro si Latin phrase “qui ipso in of the hac parte sequitur,” which translated into English means he “who sues on behalf King as well as for The purpose of the provision of the FCA, originally and qui tam himself.” now, is to encourage private individuals who are aware of fraud being perpetrated against the Government to bring such information forward. The language of the original FCA permitted the relator to initiate suit even though that private individual contributed nothing to the exposure of the fraud alleged. That right remained intact until the FCA was amended. During the 1930s relators could, and routinely did, file FCA suits without having any independent knowledge of
litigation for over two decades) and discusses recent amendments to the FCA intended to strengthen the statute. Second, the article will discuss the FCA’s qui tam provisions and practical considerations for qui tam relators. The final section will address common issues of concern with FCA litigation and common theories of liability. I. History of the False Claims Act A. Enactment of False Claims Act and the 1943 Amendments The False Claims Act (“FCA”), 31 U.S.C. §§3729-3730, was enacted by Congress in 1863 at the request of President Abraham Lincoln, in an effort to combat profiteering by Union Army suppliers. The Act provided both civil and criminal penalties for fraudulent claims submitted to the United States. Initially known as the “Informer’s Act,” the FCA was designed to combat defense procurement fraud by providing to any private citizen the right to file a civil action against anyone who submitted a false claim for payment to the United States Government. Under the original FCA, the private citizen (“relator”) acted essentially as a private attorney general by bringing a civil suit and was rewarded by receiving fifty percent of all moneys recovered in the lawsuit. These civil suits were known by the Latin phrase “qui tam pro domino rege quam pro si ipso in hac parte sequitur,” which translated into English means he “who sues on behalf of the King as well as for himself.” The purpose of the qui tam provision of the FCA, originally and now, is to encourage private individuals who are aware of fraud being perpetrated against the Government to bring such information forward. The language of the original FCA permitted the relator to initiate suit even though that private individual contributed nothing to the exposure of the fraud alleged. That right remained intact until the FCA was amended. During the 1930s relators could, and routinely did, file FCA suits without having any independent knowledge of
False%20Claims%20Act%20Litigation.docx