31 U.S.C. § 3732 — False claims jurisdiction

Page 341 TITLE 31—MONEY AND FINANCE § 3732 1 So in original. Probably should be preceded by ‘‘section’’. 1986—Pub. L. 99–562, § 3, amended section generally, revising and expanding provisions of subsecs. (a) to (c), adding subsecs. (d) and (e), redesignating former sub- sec. (d) as (f), and adding subsec. (g). Subsec. (h). Pub. L. 99–562, § 4, added subsec. (h). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking. EFFECTIVE DATE OF 2009 AMENDMENT Amendment by Pub. L. 111–21 effective May 20, 2009, and applicable to conduct on or after May 20, 2009, see section 4(f) of Pub. L. 111–21, set out as a note under section 3729 of this title. EFFECTIVE DATE OF 1990 AMENDMENT Pub. L. 101–280, § 10(c), May 4, 1990, 104 Stat. 162, pro- vided that: ‘‘The amendments made by subsections (a) and (b) [amending this section and section 2397a of Title 10, Armed Forces] shall take effect on January 1, 1991.’’ § 3731. False claims procedure (a) A subpena requiring the attendance of a witness at a trial or hearing conducted under section 3730 of this title may be served at any place in the United States. (b) A civil action under section 3730 may not be brought— (1) more than 6 years after the date on which the violation of section 3729 is committed, or (2) more than 3 years after the date when facts material to the right of action are known or reasonably should have been known by the official of the United States charged with responsibility to act in the cir- cumstances, but in no event more than 10 years after the date on which the violation is committed, whichever occurs last. (c) If the Government elects to intervene and proceed with an action brought under 3730(b),1 the Government may file its own complaint or amend the complaint of a person who has brought an action under section 3730(b) to clar- ify or add detail to the claims in which the Gov- ernment is intervening and to add any addi- tional claims with respect to which the Govern- ment contends it is entitled to relief. For stat- ute of limitations purposes, any such Govern- ment pleading shall relate back to the filing date of the complaint of the person who origi- nally brought the action, to the extent that the claim of the Government arises out of the con- duct, transactions, or occurrences set forth, or attempted to be set forth, in the prior complaint of that person. (d) In any action brought under section 3730, the United States shall be required to prove all essential elements of the cause of action, includ- ing damages, by a preponderance of the evi- dence. (e) Notwithstanding any other provision of law, the Federal Rules of Criminal Procedure, or the Federal Rules of Evidence, a final judgment rendered in favor of the United States in any criminal proceeding charging fraud or false statements, whether upon a verdict after trial or upon a plea of guilty or nolo contendere, shall estop the defendant from denying the essential elements of the offense in any action which in- volves the same transaction as in the criminal proceeding and which is brought under sub- section (a) or (b) of section 3730. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 979; Pub. L. 99–562, § 5, Oct. 27, 1986, 100 Stat. 3158; Pub. L. 111–21, § 4(b), May 20, 2009, 123 Stat. 1623.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 3731(a) ..... 31:232(F). R.S. § 3491(F); added Nov. 2, 1978, Pub. L. 95–582, § 1, 92 Stat. 2479. 3731(b) ..... 31:235. R.S. § 3494. In subsection (b), the words ‘‘A civil action under sec- tion 3730 of this title’’ are substituted for ‘‘Every such suit’’ for clarity. Editorial Notes REFERENCES IN TEXT The Federal Rules of Criminal Procedure, referred to in subsec. (e), are set out in the Appendix to Title 18, Crimes and Criminal Procedure. The Federal Rules of Evidence, referred to in subsec. (e), are set out in the Appendix to Title 28, Judiciary and Judicial Procedure. AMENDMENTS 2009—Subsecs. (c) to (e). Pub. L. 111–21, which directed amendment of section ‘‘3731(b)’’ of this title by adding subsec. (c) and redesignating former subsecs. (c) and (d) as (d) and (e), respectively, was executed by making the amendment to this section, to reflect the probable in- tent of Congress. 1986—Subsecs. (b) to (d). Pub. L. 99–562 added subsecs. (b) to (d) and struck out former subsec. (b) which read as follows: ‘‘A civil action under section 3730 of this title must be brought within 6 years from the date the violation is committed.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2009 AMENDMENT Amendment by Pub. L. 111–21 effective May 20, 2009, and applicable to conduct on or after May 20, 2009, ex- cept that this section, as amended by Pub. L. 111–21, ap- plicable to cases pending on May 20, 2009, see section 4(f) of Pub. L. 111–21, set out as a note under section 3729 of this title. § 3732. False claims jurisdiction (a) ACTIONS UNDER SECTION 3730.—Any action under section 3730 may be brought in any judi- cial district in which the defendant or, in the case of multiple defendants, any one defendant can be found, resides, transacts business, or in which any act proscribed by section 3729 oc- curred. A summons as required by the Federal Rules of Civil Procedure shall be issued by the appropriate district court and served at any place within or outside the United States. (b) CLAIMS UNDER STATE LAW.—The district courts shall have jurisdiction over any action brought under the laws of any State for the re- covery of funds paid by a State or local govern- ment if the action arises from the same trans- Page 342 TITLE 31—MONEY AND FINANCE § 3733 1 So in original. Probably should be ‘‘law’’. action or occurrence as an action brought under section 3730. (c) SERVICE ON STATE OR LOCAL AUTHORITIES.— With respect to any State or local government that is named as a co-plaintiff with the United States in an action brought under subsection (b), a seal on the action ordered by the court under section 3730(b) shall not preclude the Gov- ernment or the person bringing the action from serving the complaint, any other pleadings, or the written disclosure of substantially all mate- rial evidence and information possessed by the person bringing the action on the law enforce- ment authorities that are authorized under the law of that State or local government to inves- tigate and prosecute such actions on behalf of such governments, except that such seal applies to the law enforcement authorities so served to the same extent as the seal applies to other par- ties in the action. (Added Pub. L. 99–562, § 6(a), Oct. 21, 1986, 100 Stat. 3158; amended Pub. L. 111–21, § 4(e), May 20, 2009, 123 Stat. 1625.) Editorial Notes REFERENCES IN TEXT The Federal Rules of Civil Procedure, referred to in subsec. (a), are set out in the Appendix to Title 28, Ju- diciary and Judicial Procedure. AMENDMENTS 2009—Subsec. (c). Pub. L. 111–21 added subsec. (c). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2009 AMENDMENT Amendment by Pub. L. 111–21 effective May 20, 2009, and applicable to conduct on or after May 20, 2009, ex- cept that this section, as amended by Pub. L. 111–21, ap- plicable to cases pending on May 20, 2009, see section 4(f) of Pub. L. 111–21, set out as a note under section 3729 of this title. § 3733. Civil investigative demands (a) IN GENERAL.— (1) ISSUANCE AND SERVICE.—Whenever the At- torney General, or a designee (for purposes of this section), has reason to believe that any person may be in possession, custody, or con- trol of any documentary material or informa- tion relevant to a false claims law investiga- tion, the Attorney General, or a designee, may, before commencing a civil proceeding under section 3730(a) or other false claims law, or making an election under section 3730(b), issue in writing and cause to be served upon such person, a civil investigative demand re- quiring such person— (A) to produce such documentary material for inspection and copying, (B) to answer in writing written interrog- atories with respect to such documentary material or information, (C) to give oral testimony concerning such documentary material or information, or (D) to furnish any combination of such ma- terial, answers, or testimony. The Attorney General may delegate the au- thority to issue civil investigative demands under this subsection. Whenever a civil inves- tigative demand is an express demand for any product of discovery, the Attorney General, the Deputy Attorney General, or an Assistant Attorney General shall cause to be served, in any manner authorized by this section, a copy of such demand upon the person from whom the discovery was obtained and shall notify the person to whom such demand is issued of the date on which such copy was served. Any information obtained by the Attorney General or a designee of the Attorney General under this section may be shared with any qui tam relator if the Attorney General or designee de- termine it is necessary as part of any false claims act 1 investigation. (2) CONTENTS AND DEADLINES.— (A) Each civil investigative demand issued under paragraph (1) shall state the nature of the conduct constituting the alleged viola- tion of a false claims law which is under in- vestigation, and the applicable provision of law alleged to be violated. (B) If such demand is for the production of documentary material, the demand shall— (i) describe each class of documentary material to be produced with such defi- niteness and certainty as to permit such material to be fairly identified; (ii) prescribe a return date for each such class which will provide a reasonable pe- riod of time within which the material so demanded may be assembled and made available for inspection and copying; and (iii) identify the false claims law investi- gator to whom such material shall be made available. (C) If such demand is for answers to writ- ten interrogatories, the demand shall— (i) set forth with specificity the written interrogatories to be answered; (ii) prescribe dates at which time an- swers to written interrogatories shall be submitted; and (iii) identify the false claims law investi- gator to whom such answers shall be sub- mitted. (D) If such demand is for the giving of oral testimony, the demand shall— (i) prescribe a date, time, and place at which oral testimony shall be commenced; (ii) identify a false claims law investi- gator who shall conduct the examination and the custodian to whom the transcript of such examination shall be submitted; (iii) specify that such attendance and testimony are necessary to the conduct of the investigation; (iv) notify the person receiving the de- mand of the right to be accompanied by an attorney and any other representative; and (v) describe the general purpose for which the demand is being issued and the general nature of the testimony, including the primary areas of inquiry, which will be taken pursuant to the demand. (E) Any civil investigative demand issued under this section which is an express de- mand for any product of discovery shall not