How Do Conspiracy False Claims Work?

Below False Claims Act attorney Tony Munter discusses conspiracy claims dealing with the False Claims Act. To learn more schedule a free consultation with an FCA attorney today.

If I Know That Two or More Companies Are Actively Planning to Defraud The Government Can I File The False Claims Act?

That is a little tricky in a sense that planning to isn’t the same thing as actually ripping off the government. So I do not believe there is an action under the False Claims Act  for planning to commit fraud against the government if in fact you don’t actually go out and commit fraud against the government. Obviously if you plan the fraud and then proceed to do it you would be liable under the act and there is no reason why two companies can’t be sued under this circumstance.

What is the False Claims Conspiracy Section 3729?

Well it covers really any other type of False Claims Act except when there are two and it just requires that there be an agreement between two parties at least, it could be more to violate the False Claims Act, or to take action that would violate the False Claims Act with other provisions.

So if you have two companies that agree that they are going to bid, rig a bid and lie about it to the government as long as you can show that there is an agreement between these two companies then you can sue them for conspiracy under the False Claims Act as well and they would be jointly held liable for whatever the damages are under that particular claim. So that is what the Conspiracy under the False Claims Act is anyway.

How is it Different From Other Kinds of False Claims Cases?

I would just say that Conspiracy is the derivative of other False Claims Acts cases. To have a False Claims Act case, whether it involves conspiracy of you know 50 companies or one person, we need to show either that the government was ripped off in some way, was lied to in some way, or that money was owed to the government and the government was lied to about it in some way. You can with the conspiracy, assuming that there is agreements to pursue such a scheme, add as many of the conspirators as you wish if you have evidence I should say are involved in such a conspiracy.