31 U.S.C. § 3802 — False claims and statements; liability

Page 350 TITLE 31—MONEY AND FINANCE § 3802 Subsec. (a)(4)(A)(i). Pub. L. 117–286, § 4(b)(56)(C), sub- stituted ‘‘chapter 4 of title 5’’ for ‘‘the Inspector Gen- eral Act of 1978’’. Subsec. (a)(4)(A)(ii). Pub. L. 117–286, § 4(b)(56)(D), sub- stituted ‘‘chapter 4 of title 5’’ for ‘‘the Inspector Gen- eral Act of 1978’’. 2008—Subsec. (a)(1)(F). Pub. L. 110–409 added subpar. (F). 2007—Subsec. (a)(1)(E). Pub. L. 110–69 added subpar. (E). 1994—Subsec. (a)(7)(B)(ii). Pub. L. 103–272 substituted ‘‘section 3803 of this title’’ for ‘‘section 3803 of such title’’. 1986—Subsec. (a)(3), (9). Pub. L. 99–514 substituted ‘‘Internal Revenue Code of 1986’’ for ‘‘Internal Revenue Code of 1954’’. Statutory Notes and Related Subsidiaries CHANGE OF NAME Pub. L. 118–159, div. E, title LII, § 5203(a)(2), Dec. 23, 2024, 138 Stat. 2440, provided that: ‘‘Any reference to the Program Fraud Civil Remedies Act of 1986 in any provi- sion of law, regulation, map, document, record, or other paper of the United States shall be deemed a ref- erence to the Administrative False Claims Act [see Short Title note below].’’ EFFECTIVE DATE Pub. L. 99–509, title VI, subtitle B (§§ 6101–6104), § 6104, Oct. 21, 1986, 100 Stat. 1948, provided that: ‘‘This sub- title and the amendments made by this subtitle [see Short Title note below] shall take effect on the date of enactment of this Act [Oct. 21, 1986], and shall apply to any claim or statement made, presented, or submitted on or after such date.’’ SHORT TITLE Pub. L. 99–509, title VI, subtitle B (§§ 6101–6104), § 6101, Oct. 21, 1986, 100 Stat. 1934, as amended by Pub. L. 118–159, div. E, title LII, § 5203(a)(1)(B), Dec. 23, 2024, 138 Stat. 2440, provided that: ‘‘This subtitle [enacting this chapter, amending section 504 of Title 5, Government Organization and Employees, and enacting provisions set out as notes under this section] may be cited as the ‘Administrative False Claims Act’.’’ REGULATIONS Pub. L. 118–159, div. E, title LII, § 5203(g)(3), Dec. 23, 2024, 138 Stat. 2443, provided that: ‘‘Not later than 180 days after the date of enactment of this Act [Dec. 23, 2024], each authority head, as defined in section 3801 of title 31, United States Code, and each board of contract appeals of a board described in subparagraph (B), (C), or (D) of section 7105(e)[(1)] of title 41, United States Code, shall amend procedures regarding proceedings as nec- essary to implement the amendments made by this sub- section [amending this section, section 3803 of this title, and section 7105 of Title 41, Public Contracts].’’ Pub. L. 118–159, div. E, title LII, § 5203(j), Dec. 23, 2024, 138 Stat. 2443, provided that: ‘‘Not later than 180 days after the date of enactment of this Act [Dec. 23, 2024], each authority head, as defined in section 3801 of title 31, United States Code, shall— ‘‘(1) promulgate regulations and procedures to carry out this Act [probably should be ‘‘this section’’, which amended this section, sections 3802, 3803, 3806, and 3808 of this title, section 405 of Title 5, Govern- ment Organization and Employees, and section 7105 of Title 41, Public Contracts, and enacted and amended provisions set out as notes under this section] and the amendments made by this Act; and ‘‘(2) review and update existing regulations and pro- cedures of the authority to ensure compliance with this Act and the amendments made by this Act.’’ REFERENCES IN OTHER LAWS TO GS–16, 17, OR 18 PAY RATES References in laws to the rates of pay for GS–16, 17, or 18, or to maximum rates of pay under the General Schedule, to be considered references to rates payable under specified sections of Title 5, Government Organi- zation and Employees, see section 529 [title I, § 101(c)(1)] of Pub. L. 101–509, set out in a note under section 5376 of Title 5. CONGRESSIONAL FINDINGS AND PURPOSES Pub. L. 99–509, title VI, subtitle B (§§ 6101–6104), § 6102, Oct. 21, 1986, 100 Stat. 1934, provided that: ‘‘(a) FINDINGS.—The Congress finds that— ‘‘(1) false, fictitious, and fraudulent claims and statements in Government programs are a serious problem; ‘‘(2) false, fictitious, and fraudulent claims and statements in Government programs result in the loss of millions of dollars annually by allowing per- sons to receive Federal funds to which they are not entitled; ‘‘(3) false, fictitious, and fraudulent claims and statements in Government programs undermine the integrity of such programs by allowing ineligible per- sons to participate in such programs; and ‘‘(4) present civil and criminal remedies for such claims and statements are not sufficiently respon- sive. ‘‘(b) PURPOSES.—The purposes of this subtitle [see Short Title note above] are— ‘‘(1) to provide Federal agencies which are the vic- tims of false, fictitious, and fraudulent claims and statements with an administrative remedy to rec- ompense such agencies for losses resulting from such claims and statements, to permit administrative pro- ceedings to be brought against persons who make, present, or submit such claims and statements, and to deter the making, presenting, and submitting of such claims and statements in the future; and ‘‘(2) to provide due process protections to all per- sons who are subject to the administrative adjudica- tion of false, fictitious, or fraudulent claims or state- ments.’’ § 3802. False claims and statements; liability (a)(1) Any person who makes, presents, or sub- mits, or causes to be made, presented, or sub- mitted, a claim that the person knows or has reason to know— (A) is false, fictitious, or fraudulent; (B) includes or is supported by any written statement which asserts a material fact which is false, fictitious, or fraudulent; (C) includes or is supported by any written statement that— (i) omits a material fact; (ii) is false, fictitious, or fraudulent as a result of such omission; and (iii) is a statement in which the person making, presenting, or submitting such statement has a duty to include such mate- rial fact; or (D) is for payment for the provision of prop- erty or services which the person has not pro- vided as claimed, shall be subject to, in addition to any other rem- edy that may be prescribed by law, a civil pen- alty of not more than $5,000 for each such claim. Except as provided in paragraph (3) of this sub- section, such person shall also be subject to an assessment, in lieu of damages sustained by the United States because of such claim, of not more than twice the amount of such claim, or the portion of such claim, which is determined under this chapter to be in violation of the pre- ceding sentence. (2) Any person who makes, presents, or sub- mits, or causes to be made, presented, or sub- mitted, a written statement that— Page 351 TITLE 31—MONEY AND FINANCE § 3803 (A) the person knows or has reason to know— (i) asserts a material fact which is false, fictitious, or fraudulent; or (ii)(I) omits a material fact; and (II) is false, fictitious, or fraudulent as a result of such omission; (B) in the case of a statement described in clause (ii) of subparagraph (A), is a statement in which the person making, presenting, or submitting such statement has a duty to in- clude such material fact; and (C) contains or is accompanied by an express certification or affirmation of the truthfulness and accuracy of the contents of the statement, shall be subject to, in addition to any other rem- edy that may be prescribed by law, a civil pen- alty of not more than $5,000 for each such state- ment. (3)(A) Except as provided in subparagraph (B), an assessment shall not be made under the sec- ond sentence of paragraph (1) with respect to a claim if payment by the Government has not been made on such claim. (B) In the case of a claim described in section 3801(a)(3)(C), an assessment shall not be made under the second sentence of paragraph (1) in an amount that is more than double the value of the property, services, or money that was wrongfully withheld from the authority. (b)(1) Except as provided in paragraphs (2) and (3) of this subsection— (A) a determination under section 3803(a)(2) of this title that there is adequate evidence to believe that a person is liable under subsection (a) of this section; or (B) a determination under section 3803 of this title that a person is liable under sub- section (a) of this section, may provide the authority with grounds for commencing any administrative or contractual action against such person which is authorized by law and which is in addition to any action against such person under this chapter. (2) A determination referred to in paragraph (1) of this subsection may be used by the author- ity, but shall not require such authority, to commence any administrative or contractual action which is authorized by law. (3) In the case of an administrative or contrac- tual action to suspend or debar any person who is eligible to enter into contracts with the Fed- eral Government, a determination referred to in paragraph (1) of this subsection shall not be con- sidered as a conclusive determination of such person’s responsibility pursuant to Federal pro- curement laws and regulations. (Added Pub. L. 99–509, title VI, § 6103(a), Oct. 21, 1986, 100 Stat. 1937; amended Pub. L. 118–159, div. E, title LII, § 5203(b)(2), Dec. 23, 2024, 138 Stat. 2440.) Editorial Notes AMENDMENTS 2024—Subsec. (a)(3). Pub. L. 118–159 designated exist- ing provisions as subpar. (A), substituted ‘‘Except as provided in subparagraph (B), an assessment’’ for ‘‘An assessment’’, and added subpar. (B). § 3803. Hearing and determinations (a)(1) The investigating official of an author- ity may investigate allegations that a person is liable under section 3802 of this title and shall report the findings and conclusions of such in- vestigation to the reviewing official of the au- thority. The preceding sentence does not modify any responsibility of an investigating official to report violations of criminal law to the Attor- ney General. (2) If the reviewing official of an authority de- termines, based upon the report of the inves- tigating official under paragraph (1) of this sub- section, that there is adequate evidence to be- lieve that a person is liable under section 3802 of this title, the reviewing official shall transmit to the Attorney General a written notice of the intention of such official to refer the allegations of such liability to a presiding officer of such au- thority. Such notice shall include— (A) a statement of the reasons of the review- ing official for the referral of such allegations; (B) a statement specifying the evidence which supports such allegations; (C) a description of the claims or statements for which liability under section 3802 of this title is alleged; (D) an estimate of the amount of money or the value of property or services requested or demanded in violation of section 3802 of this title; and (E) a statement of any exculpatory or miti- gating circumstances which may relate to such claims or statements. (b)(1) Within 90 days after receipt of a notice from a reviewing official under paragraph (2) of subsection (a), the Attorney General or an As- sistant Attorney General designated by the At- torney General shall transmit a written state- ment to the reviewing official which specifies— (A) that the Attorney General or such As- sistant Attorney General approves or dis- approves the referral to a presiding officer of the allegations of liability stated in such no- tice; (B) in any case in which the referral of alle- gations is approved, that the initiation of a proceeding under this section with respect to such allegations is appropriate; and (C) in any case in which the referral of alle- gations is disapproved, the reasons for such disapproval. (2) A reviewing official may refer allegations of liability to a presiding officer only if the At- torney General or an Assistant Attorney Gen- eral designated by the Attorney General ap- proves the referral of such allegations in a writ- ten statement described in paragraph (1) of this subsection. (3) If the Attorney General or an Assistant At- torney General designated by the Attorney Gen- eral transmits to an authority head a written finding that the continuation of any hearing under this section with respect to a claim or statement may adversely affect any pending or potential criminal or civil action related to such claim or statement, such hearing shall be imme- diately stayed and may be resumed only upon written authorization of the Attorney General. (c)(1) No allegations of liability under section 3802 of this title with respect to any claim made,