31 U.S.C. § 3730 — Civil actions for false claims

Page 337 TITLE 31—MONEY AND FINANCE § 3730 1 So in original. Probably should be a reference to Rule 4(i). 1986—Subsec. (a). Pub. L. 99–562, § 2(1), designated ex- isting provisions as subsec. (a), inserted subsec. head- ing, 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 pen- alty 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 per- son’’ 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 ‘‘con- trol 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 of- ficer 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). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2009 AMENDMENT Pub. L. 111–21, § 4(f), May 20, 2009, 123 Stat. 1625, pro- vided 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.] § 3730. Civil actions for false claims (a) RESPONSIBILITIES OF THE ATTORNEY GEN- ERAL.—The Attorney General diligently shall in- vestigate a violation under section 3729. If the Attorney General finds that a person has vio- lated or is violating section 3729, the Attorney General may bring a civil action under this sec- tion against the person. (b) ACTIONS BY PRIVATE PERSONS.—(1) A person may bring a civil action for a violation of sec- tion 3729 for the person and for the United States Government. The action shall be brought in the name of the Government. The action may be dismissed only if the court and the Attorney General give written consent to the dismissal and their reasons for consenting. (2) A copy of the complaint and written disclo- sure of substantially all material evidence and information the person possesses shall be served on the Government pursuant to Rule 4(d)(4) 1 of the Federal Rules of Civil Procedure. The com- plaint shall be filed in camera, shall remain under seal for at least 60 days, and shall not be served on the defendant until the court so or- ders. The Government may elect to intervene and proceed with the action within 60 days after it receives both the complaint and the material evidence and information. (3) The Government may, for good cause shown, move the court for extensions of the time during which the complaint remains under seal under paragraph (2). Any such motions may be supported by affidavits or other submissions in camera. The defendant shall not be required to respond to any complaint filed under this sec- tion until 20 days after the complaint is un- sealed and served upon the defendant pursuant to Rule 4 of the Federal Rules of Civil Proce- dure. (4) Before the expiration of the 60-day period or any extensions obtained under paragraph (3), the Government shall— (A) proceed with the action, in which case the action shall be conducted by the Govern- ment; or (B) notify the court that it declines to take over the action, in which case the person bringing the action shall have the right to conduct the action. (5) When a person brings an action under this subsection, no person other than the Govern- ment may intervene or bring a related action based on the facts underlying the pending ac- tion. (c) RIGHTS OF THE PARTIES TO QUI TAM AC- TIONS.—(1) If the Government proceeds with the action, it shall have the primary responsibility for prosecuting the action, and shall not be bound by an act of the person bringing the ac- tion. Such person shall have the right to con- tinue as a party to the action, subject to the limitations set forth in paragraph (2). (2)(A) The Government may dismiss the action notwithstanding the objections of the person initiating the action if the person has been noti- fied by the Government of the filing of the mo- tion and the court has provided the person with an opportunity for a hearing on the motion. (B) The Government may settle the action with the defendant notwithstanding the objec- tions of the person initiating the action if the court determines, after a hearing, that the pro- posed settlement is fair, adequate, and reason- able under all the circumstances. Upon a show- ing of good cause, such hearing may be held in camera. (C) Upon a showing by the Government that unrestricted participation during the course of the litigation by the person initiating the action would interfere with or unduly delay the Gov- Page 338 TITLE 31—MONEY AND FINANCE § 3730 2 So in original. Probably should be ‘‘General’’. ernment’s prosecution of the case, or would be repetitious, irrelevant, or for purposes of harass- ment, the court may, in its discretion, impose limitations on the person’s participation, such as— (i) limiting the number of witnesses the per- son may call; (ii) limiting the length of the testimony of such witnesses; (iii) limiting the person’s cross-examination of witnesses; or (iv) otherwise limiting the participation by the person in the litigation. (D) Upon a showing by the defendant that un- restricted participation during the course of the litigation by the person initiating the action would be for purposes of harassment or would cause the defendant undue burden or unneces- sary expense, the court may limit the participa- tion by the person in the litigation. (3) If the Government elects not to proceed with the action, the person who initiated the ac- tion shall have the right to conduct the action. If the Government so requests, it shall be served with copies of all pleadings filed in the action and shall be supplied with copies of all deposi- tion transcripts (at the Government’s expense). When a person proceeds with the action, the court, without limiting the status and rights of the person initiating the action, may neverthe- less permit the Government to intervene at a later date upon a showing of good cause. (4) Whether or not the Government proceeds with the action, upon a showing by the Govern- ment that certain actions of discovery by the person initiating the action would interfere with the Government’s investigation or prosecution of a criminal or civil matter arising out of the same facts, the court may stay such discovery for a period of not more than 60 days. Such a showing shall be conducted in camera. The court may extend the 60-day period upon a further showing in camera that the Government has pursued the criminal or civil investigation or proceedings with reasonable diligence and any proposed discovery in the civil action will inter- fere with the ongoing criminal or civil inves- tigation or proceedings. (5) Notwithstanding subsection (b), the Gov- ernment may elect to pursue its claim through any alternate remedy available to the Govern- ment, including any administrative proceeding to determine a civil money penalty. If any such alternate remedy is pursued in another pro- ceeding, the person initiating the action shall have the same rights in such proceeding as such person would have had if the action had contin- ued under this section. Any finding of fact or conclusion of law made in such other proceeding that has become final shall be conclusive on all parties to an action under this section. For pur- poses of the preceding sentence, a finding or conclusion is final if it has been finally deter- mined on appeal to the appropriate court of the United States, if all time for filing such an ap- peal with respect to the finding or conclusion has expired, or if the finding or conclusion is not subject to judicial review. (d) AWARD TO QUI TAM PLAINTIFF.—(1) If the Government proceeds with an action brought by a person under subsection (b), such person shall, subject to the second sentence of this paragraph, receive at least 15 percent but not more than 25 percent of the proceeds of the action or settle- ment of the claim, depending upon the extent to which the person substantially contributed to the prosecution of the action. Where the action is one which the court finds to be based pri- marily on disclosures of specific information (other than information provided by the person bringing the action) relating to allegations or transactions in a criminal, civil, or administra- tive hearing, in a congressional, administrative, or Government 2 Accounting Office report, hear- ing, audit, or investigation, or from the news media, the court may award such sums as it con- siders appropriate, but in no case more than 10 percent of the proceeds, taking into account the significance of the information and the role of the person bringing the action in advancing the case to litigation. Any payment to a person under the first or second sentence of this para- graph shall be made from the proceeds. Any such person shall also receive an amount for reasonable expenses which the court finds to have been necessarily incurred, plus reasonable attorneys’ fees and costs. All such expenses, fees, and costs shall be awarded against the de- fendant. (2) If the Government does not proceed with an action under this section, the person bringing the action or settling the claim shall receive an amount which the court decides is reasonable for collecting the civil penalty and damages. The amount shall be not less than 25 percent and not more than 30 percent of the proceeds of the action or settlement and shall be paid out of such proceeds. Such person shall also receive an amount for reasonable expenses which the court finds to have been necessarily incurred, plus rea- sonable attorneys’ fees and costs. All such ex- penses, fees, and costs shall be awarded against the defendant. (3) Whether or not the Government proceeds with the action, if the court finds that the ac- tion was brought by a person who planned and initiated the violation of section 3729 upon which the action was brought, then the court may, to the extent the court considers appro- priate, reduce the share of the proceeds of the action which the person would otherwise receive under paragraph (1) or (2) of this subsection, taking into account the role of that person in advancing the case to litigation and any rel- evant circumstances pertaining to the violation. If the person bringing the action is convicted of criminal conduct arising from his or her role in the violation of section 3729, that person shall be dismissed from the civil action and shall not re- ceive any share of the proceeds of the action. Such dismissal shall not prejudice the right of the United States to continue the action, rep- resented by the Department of Justice. (4) If the Government does not proceed with the action and the person bringing the action conducts the action, the court may award to the defendant its reasonable attorneys’ fees and ex- penses if the defendant prevails in the action and the court finds that the claim of the person bringing the action was clearly frivolous, clear- Page 339 TITLE 31—MONEY AND FINANCE § 3730 3 So in original. Probably should be ‘‘or (ii) has’’. ly vexatious, or brought primarily for purposes of harassment. (e) CERTAIN ACTIONS BARRED.—(1) No court shall have jurisdiction over an action brought by a former or present member of the armed forces under subsection (b) of this section against a member of the armed forces arising out of such person’s service in the armed forces. (2)(A) No court shall have jurisdiction over an action brought under subsection (b) against a Member of Congress, a member of the judiciary, or a senior executive branch official if the ac- tion is based on evidence or information known to the Government when the action was brought. (B) For purposes of this paragraph, ‘‘senior ex- ecutive branch official’’ means any officer or employee listed in paragraphs (1) through (8) of section 13103(f) of title 5. (3) In no event may a person bring an action under subsection (b) which is based upon allega- tions or transactions which are the subject of a civil suit or an administrative civil money pen- alty proceeding in which the Government is al- ready a party. (4)(A) The court shall dismiss an action or claim under this section, unless opposed by the Government, if substantially the same allega- tions or transactions as alleged in the action or claim were publicly disclosed— (i) in a Federal criminal, civil, or adminis- trative hearing in which the Government or its agent is a party; (ii) in a congressional, Government Account- ability Office, or other Federal report, hear- ing, audit, or investigation; or (iii) from the news media, unless the action is brought by the Attorney General or the person bringing the action is an original source of the information. (B) For purposes of this paragraph, ‘‘original source’’ means an individual who either (i) prior to a public disclosure under subsection (e)(4)(a), has voluntarily disclosed to the Government the information on which allegations or trans- actions in a claim are based, or (2) who has 3 knowledge that is independent of and materially adds to the publicly disclosed allegations or transactions, and who has voluntarily provided the information to the Government before filing an action under this section. (f) GOVERNMENT NOT LIABLE FOR CERTAIN EX- PENSES.—The Government is not liable for ex- penses which a person incurs in bringing an ac- tion under this section. (g) FEES AND EXPENSES TO PREVAILING DE- FENDANT.—In civil actions brought under this section by the United States, the provisions of section 2412(d) of title 28 shall apply. (h) RELIEF FROM RETALIATORY ACTIONS.— (1) IN GENERAL.—Any employee, contractor, or agent shall be entitled to all relief nec- essary to make that employee, contractor, or agent whole, if that employee, contractor, or agent is discharged, demoted, suspended, threatened, harassed, or in any other manner discriminated against in the terms and condi- tions of employment because of lawful acts done by the employee, contractor, agent or as- sociated others in furtherance of an action under this section or other efforts to stop 1 or more violations of this subchapter. (2) RELIEF.—Relief under paragraph (1) shall include reinstatement with the same seniority status that employee, contractor, or agent would have had but for the discrimination, 2 times the amount of back pay, interest on the back pay, and compensation for any special damages sustained as a result of the discrimi- nation, including litigation costs and reason- able attorneys’ fees. An action under this sub- section may be brought in the appropriate dis- trict court of the United States for the relief provided in this subsection. (3) LIMITATION ON BRINGING CIVIL ACTION.—A civil action under this subsection may not be brought more than 3 years after the date when the retaliation occurred. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 978; Pub. L. 99–562, §§ 3, 4, Oct. 27, 1986, 100 Stat. 3154, 3157; Pub. L. 100–700, § 9, Nov. 19, 1988, 102 Stat. 4638; Pub. L. 101–280, § 10(a), May 4, 1990, 104 Stat. 162; Pub. L. 103–272, § 4(f)(1)(P), July 5, 1994, 108 Stat. 1362; Pub. L. 111–21, § 4(d), May 20, 2009, 123 Stat. 1624; Pub. L. 111–148, title X, § 10104(j)(2), Mar. 23, 2010, 124 Stat. 901; Pub. L. 111–203, title X, § 1079A(c), July 21, 2010, 124 Stat. 2079; Pub. L. 117–286, § 4(c)(36), Dec. 27, 2022, 136 Stat. 4358.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 3730(a) ..... 31:233. R.S. § 3492. 3730(b)(1) 31:232(A), (B)(less words between 3d and 4th commas). R.S. § 3491(A)–(E); restated Dec. 23, 1943, ch. 377, § 1, 57 Stat. 608; June 11, 1960, Pub. L. 86–507, § 1(28), (29), 74 Stat. 202. 3730(b)(2) 31:232(C)(1st–3d sen- tences, 5th sen- tence proviso). 3730(b)(3) 31:232(C)(4th sen- tence, 5th sen- tence less pro- viso). 3730(b)(4) 31:232(C)(last sen- tence), (D). 3730(c)(1) 31:232(E)(1). 3730(c)(2) 31:232(E)(2)(less pro- viso). 3730(d) ..... 31:232(B)(words be- tween 3d and 4th commas), (E)(2)(proviso). In the section, the words ‘‘civil action’’ are sub- stituted for ‘‘suit’’ for consistency in the revised title and with other titles of the United States Code. In subsection (a), the words ‘‘Attorney General’’ are substituted for ‘‘several district attorneys of the United States [subsequently changed to ‘United States attorneys’ because of section 1 of the Act of June 25, 1948 (ch. 646, 62 Stat. 909)] for the respective districts, for the District of Columbia, and for the several Terri- tories’’ because of 28:509. The words ‘‘by persons liable to such suit’’ are omitted as surplus. The words ‘‘and found within their respective districts or Territories’’ are omitted because of the restatement. The words ‘‘If the Attorney General finds that a person has violated or is violating section 3729, the Attorney General may bring a civil action under this section against the per- son’’ are substituted for ‘‘and to cause them to be pro- ceeded against in due form of law for the recovery of such forfeiture and damages’’ for clarity and consist- ency. The words ‘‘as the district judge may order’’ are omitted as surplus. The words ‘‘of the Attorney Gen- eral’’ are substituted for ‘‘the person bringing the suit’’ for consistency in the section. Page 340 TITLE 31—MONEY AND FINANCE § 3730 In subsection (b)(1), the words ‘‘Except as hereinafter provided’’ are omitted as unnecessary. The words ‘‘for a violation of section 3729 of this title’’ are added be- cause of the restatement. The words ‘‘and carried on’’, ‘‘several’’ and ‘‘full power and’’ are omitted as surplus. The words ‘‘of the action’’ are substituted for ‘‘to hear, try, and determine such suit’’ to eliminate unnecessary words. The words ‘‘Trial is in the judicial district with- in whose jurisdictional limits the person charged with a violation is found or the violation occurs’’ are sub- stituted for ‘‘within whose jurisdictional limits the per- son doing or committing such act shall be found, shall wheresoever such act may have been done or com- mitted’’ for consistency in the revised title and with other titles of the Code. The words ‘‘withdrawn or’’ and ‘‘judge of the’’ are omitted as surplus. The words ‘‘At- torney General’’ are substituted for ‘‘district attorney [subsequently changed to ‘United States attorneys’ be- cause of section 1 of the Act of June 25, 1948 (ch. 646, 62 Stat. 909)], first filed in the case’’ because of 28:509. In subsection (b)(2), before clause (A), the words ‘‘bill of’’, ‘‘Whenever any such suit shall be brought by any person under clause (B) of this section’’ and ‘‘to the ef- fective prosecution of such suit or’’ are omitted as sur- plus. The words ‘‘served on the Government under rule 4 of the Federal Rules of Civil Procedure (28 App. U.S.C.)’’ are substituted for ‘‘notice . . . shall be given to the United States by serving upon the United States Attorney for the district in which such suit shall have been brought . . . and by sending, by registered mail, or by certified mail, to the Attorney General of the United States at Washington, District of Columbia’’ be- cause of 28:509 and to eliminate unnecessary words. The words ‘‘proceed with the action’’ are added for clarity. Clause (A) is substituted for ‘‘shall fail, or decline in writing to the court, during said period of sixty days to enter any such suit’’ for clarity and consistency. In clause (B), the words ‘‘a period of’’ and ‘‘therein’’ are omitted as surplus. In subsection (b)(3), the words ‘‘within said period’’ are omitted as surplus. The words ‘‘proceeds with the action’’ are substituted for ‘‘shall enter appearance in such suit’’ for consistency. The words ‘‘In carrying on such suit’’ and ‘‘and may proceed in all respects as if it were instituting the suit’’ are omitted as surplus. In subsection (b)(4), the words ‘‘Unless the Govern- ment proceeds with the action’’ are added because of the restatement. The words ‘‘shall dismiss an action brought by the person on discovering’’ are substituted for ‘‘shall have no jurisdiction to proceed with any such suit . . . or pending suit . . . whenever it shall be made to appear that’’ to eliminate unnecessary words. The words ‘‘or any agency, officer, or employee thereof’’ are omitted as unnecessary. The text of 31:232(C)(last sen- tence proviso) and (D) is omitted as executed. In subsection (c), the words ‘‘herein provided’’, ‘‘fair and . . . compensation to such person’’, and ‘‘involved therein, which shall be collected’’ are omitted as sur- plus. In subsection (c)(2), the words ‘‘whether heretofore or hereafter brought’’ are omitted as unnecessary. The words ‘‘bringing the action or settling the claim’’ are substituted for ‘‘who brought such suit and prosecuted it to final judgment, or to settlement’’ for clarity and consistency. The words ‘‘as provided in clause (B) of this section’’ are omitted as unnecessary. The words ‘‘the civil penalty’’ are substituted for ‘‘forfeiture’’ for clarity and consistency. The words ‘‘to his own use’’, ‘‘the court may’’, and ‘‘to be allowed and taxed accord- ing to any provision of law or rule of court in force, or that shall be in force in suits between private parties in said court’’ are omitted as surplus. Subsection (d) is substituted for 31:232(B)(words be- tween 3d and 4th commas) and (E)(2)(proviso) to elimi- nate unnecessary words. Editorial Notes REFERENCES IN TEXT The Federal Rules of Civil Procedure, referred to in subsec. (b)(2), (3), are set out in the Appendix to Title 28, Judiciary and Judicial Procedure. AMENDMENTS 2022—Subsec. (e)(2)(B). Pub. L. 117–286 substituted ‘‘section 13103(f) of title 5.’’ for ‘‘section 101(f) of the Ethics in Government Act of 1978 (5 U.S.C. App.).’’ 2010—Subsec. (e)(4). Pub. L. 111–148 added par. (4) and struck out former par. (4) which read as follows: ‘‘(4)(A) No court shall have jurisdiction over an ac- tion under this section based upon the public disclosure of allegations or transactions in a criminal, civil, or administrative hearing, in a congressional, administra- tive, or Government Accounting Office report, hearing, audit, or investigation, or from the news media, unless the action is brought by the Attorney General or the person bringing the action is an original source of the information. ‘‘(B) For purposes of this paragraph, ‘original source’ means an individual who has direct and independent knowledge of the information on which the allegations are based and has voluntarily provided the information to the Government before filing an action under this section which is based on the information.’’ Subsec. (h)(1). Pub. L. 111–203, § 1079A(c)(1), sub- stituted ‘‘agent or associated others in furtherance of an action under this section or other efforts to stop 1 or more violations of this subchapter’’ for ‘‘or agent on behalf of the employee, contractor, or agent or associ- ated others in furtherance of other efforts to stop 1 or more violations of this subchapter’’. Subsec. (h)(3). Pub. L. 111–203, § 1079A(c)(2), added par. (3). 2009—Subsec. (h). Pub. L. 111–21 amended subsec. (h) generally. Prior to amendment, subsec. (h) read as fol- lows: ‘‘Any employee who is discharged, demoted, sus- pended, threatened, harassed, or in any other manner discriminated against in the terms and conditions of employment by his or her employer because of lawful acts done by the employee on behalf of the employee or others in furtherance of an action under this section, including investigation for, initiation of, testimony for, or assistance in an action filed or to be filed under this section, shall be entitled to all relief necessary to make the employee whole. Such relief shall include re- instatement with the same seniority status such em- ployee would have had but for the discrimination, 2 times the amount of back pay, interest on the back pay, and compensation for any special damages sus- tained as a result of the discrimination, including liti- gation costs and reasonable attorneys’ fees. An em- ployee may bring an action in the appropriate district court of the United States for the relief provided in this subsection.’’ 1994—Subsec. (e)(2)(B). Pub. L. 103–272 substituted ‘‘paragraphs (1) through (8)’’ for ‘‘section paragraphs (1) through (8)’’. 1990—Subsec. (e)(2)(B). Pub. L. 101–280 substituted ‘‘paragraphs (1) through (8) of section 101(f)’’ for ‘‘201(f)’’. 1988—Subsec. (c)(4). Pub. L. 100–700, § 9(b)(1), which di- rected amendment of section 3730 of title 28 by sub- stituting ‘‘with the action’’ for ‘‘with action’’ in subsec. (c)(4), was executed to subsec. (c)(4) of this section as the probable intent of Congress. Subsec. (d)(3). Pub. L. 100–700, § 9(a)(1), (2), added par. (3). Former par. (3) redesignated (4). Subsec. (d)(4). Pub. L. 100–700, § 9(b)(2), which directed amendment of section 3730 of title 28 by substituting ‘‘claim of the person bringing the action’’ for ‘‘claim of the person bringing the actions’’ in subsec. (d)(4), was executed to subsec. (d)(4) of this section as the probable intent of Congress. Pub. L. 100–700, § 9(a)(1), redesignated former par. (3) as (4). 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-