False Claims Act allegations leave two contractors with millions of dollars in fines (2024)

  • The Justice Department's Civil Cyber-Fraud Initiative chalked up another successful case by winning more than $11 million from two contractors to resolve False Claims Act allegations. Guidehouse paid $7.6 million and Nan McKay and Associates paid $3.7 million to put to rest claims they violated the False Claims Act. The companies failed to meet cybersecurity requirements in contracts intended to ensure a secure environment for low-income New Yorkers to apply online for federal rental assistance during the COVID-19 pandemic. Guidehouse and Nan McKay admitted that they failed to satisfy their obligation to complete the required pre-production cybersecurity testing of the system.
  • House appropriators are digging in even further into federal telework and agencies’ return-to-office policies. One fiscal 2025 spending bill that the GOP-led committee advanced this week includes language targeting teleworking feds. Language accompanying the bill would set new requirements for agencies to publicly report their policies on telework and office space. It would also require agencies to publicly share their office space utilization rates in the D.C. area. Unions are pushing back against the language, saying that telework policies should be tailored to the nature of employees’ work, rather than having a one-size-fits-all approach.

    (More House appropriators target federal telework, office space - Fedeal News Network)

  • Two Defense Department projects made the cut for the Presidential Federal Sustainability Awards the White House announced this week. One is a project the Air Force has been working on since 2019 at Florida’s Tyndall Air Force Base, about half of which was destroyed by Hurricane Michael the previous fall. The White House credited Air Force officials with rebuilding with a “base of the future” in mind, and using construction techniques that should make the installation more resilient against severe weather. The second is the huge Edwards Air Force Base solar project, which became one of the world’s biggest solar and battery storage facilities when officials cut the ribbon last year. The 4,000-acre project is also DoD’s biggest public-private partnership to date.
  • The Federal Risk and Authorization Management Program (FedRAMP) finalizes the "fast pass" approval process for AI tools. The FedRAMP cloud security program is opening up its doors to specific types of generative artificial intelligence capabilities for priority approvals starting August 31. Under the new emerging technology prioritization framework, FedRAMP is telling vendors to submit three types of GenAI tools for expedited reviews. The FedRAMP management office said it will start with GenAI tools used for chat interfaces and code generation, and debugging tools that use large language models and prompt-based image generation. It also will review associated application programming interfaces (APIs) that provide these functions. It will release the first list of prioritized AI tools by September 30.

    (FedRAMP to begin prioritizing AI cloud capabilities for approvals - Federal News Network)

  • Soon-to-retire feds, are you ready for your post-work life? Download our exclusive Retirement Guide for all the must-know info, sponsored by GEHA.
  • The Defense Counterintelligence and Security Agency is managing a surge in security clearance applications. DCSA Director David Cattler said his agency is receiving up to 11,000 new applications for investigations every week. The surge has led to longer security clearance processing timelines. Cattler told the House Oversight Committee this week that secret-level cases are taking an average of 92 days to process and a top-secret case about 188 days.

    (An examination of DOD’s struggling background check system - House Oversight and Accountability Committee )

  • For the first time in a decade, the Government Accountability Office is out with a proposed revision of federal internal controls. Called the "Green Book," GAO said its changes emphasize preventive control activities and highlights management's responsibility for internal control at all levels and within all functions of an agency's structure, such as program and financial managers. The proposed revisions provide additional requirements, guidance and resources for addressing risk areas such as fraud, improper payments and information security when designing, implementing and operating an internal control system. GAO has not updated the Standards for Internal Control in the Federal Government since 2014. Comments on the proposed revisions are due by August 26.
  • The Department of Homeland Security is expanding a new cyber personnel system. DHS established the Cyber Talent Management System (CTMS) in 2021. It got off to a slow start, but DHS has now hired nearly 200 people using CTMS. DHS Chief Information Officer Eric Hysen said the department has made hundreds of offers using the system. Hysen told the House Homeland Security Committee that in the coming years, DHS will expand use of CTMS across the department.

    (DHS aims to expand CTMS after ‘challenges’ with rollout - Fedeal News Network)

  • The Partnership for Public Service is down to just six finalists for the 2024 Sammies People’s Choice Award. The finalists are part of the larger awards program, which recognizes the work of career civil servants. The People’s Choice finalists include one team that made it possible for non-tax forms to be electronically submitted to the IRS. Another finalist developed an app that lets veterans use their phones to make health care appointments and manage insurance claims. Voting on all six finalists is open to the public until July 12. The winner will be recognized later this year during a Sammies ceremony at the Kennedy Center in Washington, D.C.

    (2024 Sammies People’s Choice Award finalists - Partnership for Public Service)

Copyright ©2024 Federal News Network. All rights reserved. This website is not intended for users located within the European Economic Area.

False Claims Act allegations leave two contractors with millions of dollars in fines (2024)

FAQs

False Claims Act allegations leave two contractors with millions of dollars in fines? ›

False Claims Act allegations leave two contractors with millions of dollars in fines. Guidehouse paid $7.6 million and Nan McKay & Associates paid $3.7 million to resovled claims that they violated the False Claims Act.

What are the fines and penalties for violating the False Claims Act? ›

False Claims Act [31 U.S.C.

It is illegal to submit claims for payment to Medicare or Medicaid that you know or should know are false or fraudulent. Filing false claims may result in fines of up to three times the programs' loss plus $11,000 per claim filed.

What is the rule 9B of the False Claims Act? ›

Rule 9B of the Federal Rules of Civil Procedure requires fraud to be pled with particularity. This creates a heightened pleading requirement, an additional burden on plaintiffs and the United States when filing a False Claims Act case.

What is an example of a violation of the False Claims Act? ›

FCA liability can arise in other situations, such as when someone knowingly uses a false record material to a false claim or improperly avoids an obligation to pay the government. Conspiring to commit any of these acts also is a violation of the FCA.

What is the penalty for False Claims Act 2024? ›

For any violations that occurred after November 2, 2015, but that are assessed after February 12, 2024, the adjusted penalties will be applied. The minimum False Claims Act penalty will increase from $13,508 to $13,946 per claim, and the maximum penalty will increase from $27,018 to $27,894 per claim.

What are the damages for False Claims Act? ›

Persons who violate the Act are liable for treble damages, or three times the actual damages, “which the Government sustains because of the act” giving rise to liability. Defendants found liable are also required to pay a mandatory penalty for each false claim (the current penalty range is between $5,500 and $11,000).

What happens if you are prosecuted under the False Claims Act? ›

The False Claims Act, 31 U.S.C. §§ 3729, provides that anyone who violates the law is liable for a civil penalty in addition to three times the damages. In addition, False Claims Act penalties are sometimes referred to as statutory penalties, civil penalties, or fines.

What is prohibited under the False Claims Act? ›

The False Claims Act [31 U.S.C. § § 3729-3733] prohibits individuals or entities from submitting inaccurate claims to a government payer (i.e., Medicare, Medicaid).

What are the elements of the False Claims Act retaliation? ›

Anti-Retaliation Provision of the Federal False Claims Act

Prohibited retaliation includes: termination, suspension, demotion, harassment, or any other discrimination in the terms and conditions of employment.

What is the Factual Falsity False Claims Act? ›

A factually false claim is rendered not payable because it rests on inaccurate factual information about the product or service billed. For example, a claim for 100 units of an injectable drug, when only 10 units were provided, is factually false and provides a basis for liability under the FCA.

How successful are False Claims Act cases? ›

69% of the $75 billion recovered since 1986 has come from qui tam lawsuits filed by whistleblowers under the False Claims Act. Relators have been awarded over $8.6 billion in so-called relator's share awards under the False Claims Act.

What is the qui tam Relator False Claims Act? ›

In False Claims Act (“FCA”) cases, the person who brings the False Claims Act claim against the company or individual who commits fraud is called a qui tam relator.

What is the largest False Claims Act settlement? ›

PROCUREMENT FRAUD

In one of the largest procurement settlements ever, Booz Allen Hamilton Holding Corporation paid $377 million to resolve allegations that it improperly billed its government contracts for costs incurred in its non-governmental commercial and international contracts.

What is knowingly under the Federal False Claims Act? ›

The term "knowingly" means that a person:

has actual knowledge of the information; acts in deliberate ignorance of the truth or falsity of the information; or. acts in reckless disregard of the truth or falsity of the information, and no proof of specific intent to defraud is required.

How many states have a False Claims Act? ›

Currently, HHS has certified sixteen states as having false claims acts at least as strong as the federal FCA, including California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Illinois, Iowa, Massachusetts, Minnesota, Montana, New York, Rhode Island, Tennessee, Texas, and Washington.

What is the Far False Claims Act? ›

Federal Acquisition Rule 52.203-13 requires a government contractor to timely disclose, in writing, to the agency Office of Inspector General whenever the contractor has credible evidence that a principal, employee, agent, or subcontractor of the contractor has committed a violation of the Civil False Claims Act or a ...

What is the penalty for violating the False Claims Act Quizlet? ›

Rationale: The statute originally provided for a civil penalty of not less than $5,000, and not more than $10,000, per claim, plus three times the amount of the government damages if FCA liability was found. This amount is occasionally increased based on the Federal Civil Penalties Inflation Adjustment Act (FCPIA).

What are the penalties for individuals and institutions that violate the False Claims Act? ›

In cases involving intentional false or fraudulent claims, federal prosecutors can pursue criminal charges under the False Claims Act. In criminal cases, potential penalties include fines and prison time. Criminal fines under the False Claims Act can be as high as $500,000 for businesses and $250,000 for individuals.

What is the penalty for violating the AKS? ›

Possible penalties for an AKS violation include the following: Criminal Penalties: fines, jail terms, and exclusion from participation in the Federal health care programs. Civil penalties: fines up to $50,000 per violation, extra fines up to three times the payment amount.

Which of the following actions may result in False Claims Act violation? ›

Submission of Fraudulent Claims: This means submitting false requests for payment to the government. Whether, for example, a healthcare provider bills Medicare for services a patient never received, or if a defense contractor charges too much for equipment, these deceptive practices constitute clear violations.

References

Top Articles
Latest Posts
Article information

Author: Melvina Ondricka

Last Updated:

Views: 6310

Rating: 4.8 / 5 (68 voted)

Reviews: 83% of readers found this page helpful

Author information

Name: Melvina Ondricka

Birthday: 2000-12-23

Address: Suite 382 139 Shaniqua Locks, Paulaborough, UT 90498

Phone: +636383657021

Job: Dynamic Government Specialist

Hobby: Kite flying, Watching movies, Knitting, Model building, Reading, Wood carving, Paintball

Introduction: My name is Melvina Ondricka, I am a helpful, fancy, friendly, innocent, outstanding, courageous, thoughtful person who loves writing and wants to share my knowledge and understanding with you.