Under the False Claims Act, penalties can be up to $22,000 per claim plus 3x the government's damages.

Under the False Claims Act, penalties can be up to $22,000 per claim plus 3x the government's damages.

• A. They are unlimited
• B. They are limited to fines of $5,000 per claim
• C. They are civil penalties only with no per-claim cap
• D. They can be up to $22,000 per claim plus 3x damages

Answer: (D)

Under the False Claims Act, each false claim carries a civil penalty and the government can recover three times its actual damages. The per-claim penalty is set by statute and periodically adjusted for inflation, which is why it can be as high as $22,000 per claim. In addition to these per-claim penalties, damages owed to the government are trebled (multiplied by three). So the total liability isn’t unlimited or limited to a fixed fine; it combines a per-claim penalty with treble damages, making option that states penalties up to $22,000 per claim plus 3x the government’s damages the correct description.

Under the False Claims Act, each false claim carries a civil penalty and the government can recover three times its actual damages. The per-claim penalty is set by statute and periodically adjusted for inflation, which is why it can be as high as $22,000 per claim. In addition to these per-claim penalties, damages owed to the government are trebled (multiplied by three). So the total liability isn’t unlimited or limited to a fixed fine; it combines a per-claim penalty with treble damages, making option that states penalties up to $22,000 per claim plus 3x the government’s damages the correct description.