CCCP False Claims Act & Whistleblower Laws 3 — Questions and Answers
Question 1: The Supreme Court's 2016 ruling in Universal Health Services v. Escobar confirmed which FCA doctrine?
- Implied false certification can support FCA liability (Correct answer)
- Express certification is the only basis for FCA liability
- Materiality is presumed from any regulatory violation
- Relators cannot pursue actions based on regulatory non-compliance
Correct answer: Implied false certification can support FCA liability
Escobar upheld the implied false certification theory but emphasized that liability requires the misrepresentation to be material to the government's payment decision.
Question 2: Under the IRS whistleblower program, what minimum amount of disputed tax must be involved for a whistleblower to be eligible for a mandatory award?
- $2 million (Correct answer)
- $1 million
- $500,000
- $5 million
Correct answer: $2 million
The IRS mandatory award program under IRC § 7623(b) applies when the disputed tax amount exceeds $2 million (or $200,000 for individual taxpayers).
Question 3: Which element distinguishes a Reverse False Claim from a standard False Claim under the FCA?
- The defendant improperly retains money owed to the government rather than receiving an improper payment (Correct answer)
- The relator is the original source of the government funds
- The government must prove intent beyond a reasonable doubt
- The civil penalties are doubled compared to standard claims
Correct answer: The defendant improperly retains money owed to the government rather than receiving an improper payment
A reverse false claim arises under 31 U.S.C. § 3729(a)(1)(G) when a person uses a false statement to avoid or reduce an obligation to pay money to the government.
Question 4: A pharmaceutical company pays a kickback to physicians who prescribe its drug covered by Medicaid. Under the FCA, why does this typically constitute a false claim?
- Claims tainted by Anti-Kickback Statute violations are deemed false under the FCA (Correct answer)
- Pharmaceutical companies are per se FCA violators
- The drug is presumed ineffective when kickbacks are paid
- It converts the claim into a criminal matter only
Correct answer: Claims tainted by Anti-Kickback Statute violations are deemed false under the FCA
The ACA explicitly made AKS violations a per se false claim under the FCA, so any Medicaid or Medicare claim tainted by an illegal kickback is actionable.
Question 5: What is the maximum civil penalty per false claim under the current FCA (post-2023 inflation adjustment)?
- Approximately $27,018 (Correct answer)
- $11,000
- $22,000
- $50,000
Correct answer: Approximately $27,018
FCA civil penalties are adjusted annually for inflation; as of 2023-2024, the per-claim penalty range is approximately $13,909 to $27,018 per violation.
Question 6: Under the FCA, a relator who voluntarily dismisses a qui tam action without the government's consent faces what consequence?
- Dismissal is not allowed without government and court consent once the complaint is unsealed (Correct answer)
- The relator forfeits only their attorneys' fees
- The government automatically takes over the action
- The relator must pay the defendant's legal fees
Correct answer: Dismissal is not allowed without government and court consent once the complaint is unsealed
Under 31 U.S.C. § 3730(b)(1), once the complaint is filed, the action may be dismissed only with written consent of the court and the Attorney General.
Question 7: Which federal agency administers the CFTC Whistleblower Program, which parallels the SEC program for commodity market fraud?
- The Commodity Futures Trading Commission (Correct answer)
- The Department of Justice
- The Financial Industry Regulatory Authority
- The Federal Reserve
Correct answer: The Commodity Futures Trading Commission
The CFTC operates its own whistleblower program under the Commodity Exchange Act, awarding 10-30% of sanctions exceeding $1 million for original information about commodity fraud.
CCCP False Claims Act & Whistleblower Laws 3
The Supreme Court's 2016 ruling in Universal Health Services v.
Escobar confirmed which FCA doctrine?