US Laws, Codes, Statutes & Cases

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[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
  January 7, 2003 and December 19, 2003]
[CITE: 31USC3729]

 
                       TITLE 31--MONEY AND FINANCE
 
                   SUBTITLE III--FINANCIAL MANAGEMENT
 
                           CHAPTER 37--CLAIMS
 
       SUBCHAPTER III--CLAIMS AGAINST THE UNITED STATES GOVERNMENT
 
Sec. 3729. False claims

    (a) Liability for Certain Acts.--Any person who--
        (1) knowingly presents, or causes to be presented, to an officer 
    or employee of the United States Government or a member of the Armed 
    Forces of the United States a false or fraudulent claim for payment 
    or approval;
        (2) knowingly makes, uses, or causes to be made or used, a false 
    record or statement to get a false or fraudulent claim paid or 
    approved by the Government;
        (3) conspires to defraud the Government by getting a false or 
    fraudulent claim allowed or paid;
        (4) has possession, custody, or control of property or money 
    used, or to be used, by the Government and, intending to defraud the 
    Government or willfully to conceal the property, delivers, or causes 
    to be delivered, less property than the amount for which the person 
    receives a certificate or receipt;
        (5) authorized to make or deliver a document certifying receipt 
    of property used, or to be used, by the Government and, intending to 
    defraud the Government, makes or delivers the receipt without 
    completely knowing that the information on the receipt is true;
        (6) knowingly buys, or receives as a pledge of an obligation or 
    debt, public property from an officer or employee of the Government, 
    or a member of the Armed Forces, who lawfully may not sell or pledge 
    the property; or
        (7) knowingly makes, uses, or causes to be made or used, a false 
    record or statement to conceal, avoid, or decrease an obligation to 
    pay or transmit money or property to the Government,

is liable to the United States Government for a civil penalty of not 
less than $5,000 and not more than $10,000, plus 3 times the amount of 
damages which the Government sustains because of the act of that person, 
except that if the court finds that--
        (A) the person committing the violation of this subsection 
    furnished officials of the United States responsible for 
    investigating false claims violations with all information known to 
    such person about the violation within 30 days after the date on 
    which the defendant first obtained the information;
        (B) such person fully cooperated with any Government 
    investigation of such violation; and
        (C) at the time such person furnished the United States with the 
    information about the violation, no criminal prosecution, civil 
    action, or administrative action had commenced under this title with 
    respect to such violation, and the person did not have actual 
    knowledge of the existence of an investigation into such violation;

the court may assess not less than 2 times the amount of damages which 
the Government sustains because of the act of the person. A person 
violating this subsection shall also be liable to the United States 
Government for the costs of a civil action brought to recover any such 
penalty or damages.
    (b) Knowing and Knowingly Defined.--For purposes of this section, 
the terms ``knowing'' and ``knowingly'' mean that a person, with respect 
to information--
        (1) has actual knowledge of the information;
        (2) acts in deliberate ignorance of the truth or falsity of the 
    information; or
        (3) acts in reckless disregard of the truth or falsity of the 
    information,

and no proof of specific intent to defraud is required.
    (c) Claim Defined.--For purposes of this section, ``claim'' includes 
any request or demand, whether under a contract or otherwise, for money 
or property which is made to a contractor, grantee, or other recipient 
if the United States Government provides any portion of the money or 
property which is requested or demanded, or if the Government will 
reimburse such contractor, grantee, or other recipient for any portion 
of the money or property which is requested or demanded.
    (d) Exemption From Disclosure.--Any information furnished pursuant 
to subparagraphs (A) through (C) of subsection (a) shall be exempt from 
disclosure under section 552 of title 5.
    (e) Exclusion.--This section does not apply to claims, records, or 
statements made under the Internal Revenue Code of 1986.

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 978; Pub. L. 99-562, Sec. 2, 
Oct. 27, 1986, 100 Stat. 3153; Pub. L. 103-272, Sec. 4(f)(1)(O), July 5, 
1994, 108 Stat. 1362.)

                                          Historical and Revision Notes
----------------------------------------------------------------------------------------------------------------
           Revised Section                   Source (U.S. Code)                Source (Statutes at Large)
----------------------------------------------------------------------------------------------------------------
3729.................................  31:231.                         R.S. Sec.  3490.
----------------------------------------------------------------------------------------------------------------

    In the section, before clause (1), the words ``a member of an armed 
force of the United States'' are substituted for ``in the military or 
naval forces of the United States, or in the militia called into or 
actually employed in the service of the United States'' and ``military 
or naval service'' for consistency with title 10. The words ``is 
liable'' are substituted for ``shall forfeit and pay'' for consistency. 
The words ``civil action'' are substituted for ``suit'' for consistency 
in the revised title and with other titles of the United States Code. 
The words ``and such forfeiture and damages shall be sued for in the 
same suit'' are omitted as unnecessary because of rules 8 and 10 of the 
Federal Rules of Civil Procedure (28 App. U.S.C.). In clauses (1)-(3), 
the words ``false or fraudulent'' are substituted for ``false, 
fictitious, or fraudulent'' and ``Fraudulent or fictitious'' to 
eliminate unnecessary words and for consistency. In clause (1), the 
words ``presents, or causes to be presented'' are substituted for 
``shall make or cause to be made, or present or cause to be presented'' 
for clarity and consistency and to eliminate unnecessary words. The 
words ``officer or employee of the Government or a member of an armed 
force'' are substituted for ``officer in the civil, military, or naval 
service of the United States'' for consistency in the revised title and 
with other titles of the Code. The words ``upon or against the 
Government of the United States, or any department of the United States, 
or any department or officer thereof'' are omitted as surplus. In clause 
(2), the word ``knowingly'' is substituted for ``knowing the same to 
contain any fraudulent or fictitious statement or entry'' to eliminate 
unnecessary words. The words ``record or statement'' are substituted for 
``bill, receipt, voucher, roll, account, claim, certificate, affidavit, 
or deposition'' for consistency in the revised title and with other 
titles of the Code. In clause (3), the words ``conspires to'' are 
substituted for ``enters into any agreement, combination, or 
conspiracy'' to eliminate unnecessary words. The words ``of the United 
States, or any department or officer thereof'' are omitted as surplus. 
In clause (4), the words ``charge'', ``or other'', and ``to any other 
person having authority to receive the same'' are omitted as surplus. In 
clause (5), the words ``document certifying receipt'' are substituted 
for ``certificate, voucher, receipt, or other paper certifying the 
receipt'' to eliminate unnecessary words. The words ``arms, ammunition, 
provisions, clothing, or other'', ``to any other person'', and ``the 
truth of'' are omitted as surplus. In clause (6), the words ``arms, 
equipments, ammunition, clothes, military stores, or other'' are omitted 
as surplus. The words ``member of an armed force'' are substituted for 
``soldier, officer, sailor, or other person called into or employed in 
the military or naval service'' for consistency with title 10. The words 
``such soldier, sailor, officer, or other person'' are omitted as 
surplus.

                       References in Text

    The Internal Revenue Code of 1986, referred to in subsec. (e), is 
classified generally to Title 26, Internal Revenue Code.


                               Amendments

    1994--Subsec. (e). Pub. L. 103-272 substituted ``1986'' for 
``1954''.
    1986--Subsec. (a). Pub. L. 99-562, Sec. 2(1), designated existing 
provisions as subsec. (a), inserted subsec. heading, 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 
penalty 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 person'' in introductory provisions.
    Subsec. (a)(1). Pub. L. 99-562, Sec. 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, Sec. 2(3), inserted ``by the 
Government'' after ``approved''.
    Subsec. (a)(4). Pub. L. 99-562, Sec. 2(4), substituted ``control of 
property'' for ``control of public property'' and ``by the Government'' 
for ``in an armed force''.
    Subsec. (a)(5). Pub. L. 99-562, Sec. 2(5), substituted ``by the 
Government'' for ``in an armed force'' and ``true;'' for ``true; or''.
    Subsec. (a)(6). Pub. L. 99-562, Sec. 2(6), substituted ``an officer 
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, Sec. 2(7), added par. (7).
    Subsecs. (b) to (e). Pub. L. 99-562, Sec. 2(7), added subsecs. (b) 
to (e).


       Increased Penalties for False Claims in Defense Procurement

    Pub. L. 99-145, title IX, Sec. 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.]

                  Section Referred to in Other Sections

    This section is referred to in sections 3730, 3731, 3732, 3733 of 
this title; title 10 section 2324; title 15 sections 637, 657a; title 20 
section 1078-9; title 41 section 256; title 42 section 1395i.