False-claims enforcement has a civil track under 31 U.S.C. § 3729 and a criminal track commonly called the criminal False Claims Act under 18 U.S.C. § 287. These are separate statutes. The government or a private relator may bring civil cases through a qui tam lawsuit. Criminal charges may be brought only by federal prosecutors and can result in imprisonment, fines, and collateral consequences.
Section 287 applies when someone knowingly makes or presents a false, fictitious, or fraudulent claim against the United States or a federal agency. A civil audit, government investigation, or qui tam complaint may also uncover facts that lead to criminal review.
**Please remember that this blog is for informational purposes only and is not legal advice. It is meant to provide general information to help you understand the issues when you consult with a lawyer; it is not a consultation in itself and does not create an attorney-client relationship. Always consult a qualified attorney about your specific situation before taking any action.**
Table of Contents
False Claims Act Definition: Civil vs. Criminal at a Glance
The term “False Claims Act” usually refers to the civil statute. In criminal practice, “criminal False Claims Act” is commonly used as shorthand for 18 U.S.C. § 287, formally titled “False, fictitious or fraudulent claims.”
| Issue | Civil False Claims Act | Criminal False Claims Statute |
| Primary statute | 31 U.S.C. § 3729 | 18 U.S.C. § 287 |
| Who brings the case | DOJ or a qui tam relator on behalf of the United States | DOJ through a U.S. Attorney’s Office |
| Burden of proof | Preponderance of the evidence | Beyond a reasonable doubt |
| Knowledge standard | Actual knowledge, deliberate ignorance, or reckless disregard | Knowledge that the claim was false, fictitious, or fraudulent |
| Potential consequences | Treble damages and inflation-adjusted civil penalties | Up to five years per count, criminal fines, and collateral consequences |
| General limitations period | Six years, subject to an alternative discovery rule and ten-year maximum | Five years under 18 U.S.C. § 3282 |
The civil FCA expressly states that specific intent to defraud is unnecessary. Section 287 requires knowledge that the claim was false. Federal courts have not described every additional intent issue identically, so the jurisdiction and precise charging language matter.
What is 18 U.S.C. § 287?
Section 287 prohibits knowingly making or presenting a false, fictitious, or fraudulent claim to the United States or a federal department or agency.
The government generally must prove that:
- A claim was made or presented to the United States or a federal agency
- The claim was false, fictitious, or fraudulent
- The defendant knew it was false when it was presented
A claim may reach the government through an intermediary. Examples can include federal reimbursement requests, contractor invoices, grant-payment requests, and claims billed to federal healthcare programs.
Penalties for Criminal False Claims Act Violations
A conviction under § 287 carries up to five years in federal prison for each count. Federal fine provisions generally authorize fines of up to $250,000 for an individual or $500,000 for an organization. The court may instead impose a fine of up to twice the gross gain or gross loss when that amount is greater.
The statutory maximum does not predict the final sentence. The court considers the applicable federal sentencing guidelines, alleged loss, the defendant’s role, criminal history, acceptance of responsibility, and other sentencing factors.
Certain healthcare-related convictions may also trigger exclusion from Medicare, Medicaid, and other federal healthcare programs when the statutory requirements for exclusion are met. That consequence does not automatically follow every § 287 case.
Facing Questions About Criminal False Claims Exposure?
If you have received a government subpoena, been contacted by federal agents, or learned that a qui tam complaint names you or your organization, criminal exposure may already be in play. Kelleter Law represents individuals and businesses facing criminal investigation in federal court.
- Decades of federal defense experience
- Focus on white-collar and healthcare fraud
- Guidance for individuals and businesses
Statute of Limitations for Criminal False Claims Act Charges
The general Statute of Limitations for Criminal False Claims Act charges is five years under 18 U.S.C. § 3282. The government ordinarily must obtain an indictment or institute an information within five years after the alleged offense was committed.
The timing analysis can become more complicated when a case involves multiple claims, conspiracy allegations, tolling, sealed charges, or conduct outside the United States. The civil FCA follows a separate limitations framework and may reach conduct beyond the general five-year criminal period.
How Criminal False Claims Charges Differ From Qui Tam Lawsuits
A qui tam lawsuit is a civil action filed under seal by a private relator on behalf of the United States. The government investigates the complaint and decides whether to intervene. The case seeks civil recovery rather than imprisonment.
A § 287 prosecution is brought only by the government. A relator cannot file criminal charges, and resolving the civil case does not automatically eliminate criminal exposure.
Related Criminal Statutes Often Charged Alongside § 287
Prosecutors may use additional statutes when the alleged conduct involves a broader scheme or statements beyond the original claim.
Conspiracy and False Statements
18 U.S.C. § 286 addresses agreements to defraud the government by obtaining payment of false or fraudulent claims. It carries up to ten years in prison.
18 U.S.C. § 1001 may apply to materially false statements, documents, or concealment within federal jurisdiction, including statements made during audits and investigations.
Wire Fraud and Healthcare Fraud
Electronic communications used to execute an alleged fraud scheme may support charges under 18 U.S.C. § 1343. Healthcare fraud criminal charges under 18 U.S.C. § 1347 may apply to schemes involving healthcare benefit programs.
Can the Same Conduct Lead to Both Civil and Criminal Liability?
Yes. DOJ policy directs criminal, civil, regulatory, and administrative attorneys to coordinate when the same facts may support parallel remedies. An individual or business may therefore face a civil FCA case, criminal investigation, administrative action, and federal-program consequences arising from the same conduct.
A civil settlement should not be assumed to resolve criminal exposure unless the agreement expressly addresses it.
How a Qui Tam Case Can Turn Into a Criminal Investigation
DOJ receives a sealed qui tam complaint and investigates its allegations. That review may involve records, witness interviews, civil investigative demands, and coordination with agency investigators.
Department policy calls for potential criminal, civil, regulatory, and administrative remedies to be considered from the intake stage. Evidence suggesting deliberate falsification, concealment, obstruction, or coordinated conduct may prompt a criminal inquiry.
A Medicaid investigation may follow a similar path when an audit or billing review uncovers evidence of possible knowing fraud.
Industries Where Criminal False-Claims Exposure Commonly Arises
Section 287 can apply in any industry where a person or organization knowingly submits a false claim for federal money or property. Certain sectors receive particular attention because they depend heavily on federal reimbursement, contracts, loans, grants, or payment certifications.
Healthcare and Federal Health Programs
Healthcare cases may involve billing for services that were not provided, fabricated patient records, false medical-necessity certifications, upcoding, or claims connected to unlawful financial arrangements.
Depending on the conduct, prosecutors may consider charges under 18 U.S.C. § 287 alongside healthcare fraud under 18 U.S.C. § 1347, false statements under 18 U.S.C. § 1001, conspiracy, or wire fraud. Healthcare remains one of the federal government’s leading false-claims enforcement areas.
Defense, Aerospace, and Government Procurement
Defense contractors and other federal vendors make representations about pricing, labor qualifications, product specifications, delivery, and compliance with contract requirements. Criminal exposure may arise when invoices or payment requests knowingly rely on inflated costs, undelivered goods, unauthorized substitutions, or false certifications.
Recent DOJ enforcement has addressed allegedly defective pricing on military-aircraft contracts, improper equipment billing, and invoices for personnel who did not meet contractual qualifications. Those matters were resolved civilly, but similar evidence of deliberate falsification may prompt criminal review.
Cybersecurity and Technology Contractors
Federal technology contracts increasingly require contractors to certify compliance with cybersecurity standards and incident-reporting obligations. False representations about security controls, data protection, or contractual compliance may affect whether the government approves or continues making payments.
DOJ’s Civil Cyber-Fraud Initiative focuses on contractors and grant recipients that allegedly misrepresent cybersecurity practices or knowingly fail to satisfy required controls. When the evidence suggests intentional false statements or a broader scheme, the same facts may also raise exposure under statutes such as § 1001, wire fraud, or conspiracy.
Financial Services, Federal Loans, and Grants
Banks, lenders, financial-technology companies, businesses, universities, and nonprofit organizations may submit applications, certifications, reimbursement requests, or reports tied to federal funds.
Potential cases include false loan-guarantee applications, fraudulent forgiveness requests, fabricated grant expenses, and inaccurate certifications about how federal money was used. The specific criminal charges depend on the program and conduct and may include § 287, false statements, bank fraud, wire fraud, or conspiracy. DOJ has pursued substantial civil enforcement involving federal loan and grant programs, including Paycheck Protection Program claims.
Customs and International Trade
Importers must provide accurate information about a product’s value, origin, classification, and applicable duties. Knowingly misrepresenting that information may create civil FCA exposure when the conduct improperly avoids money owed to the United States.
These cases require particular care because the civil theory often involves a reverse false claim based on unpaid customs duties rather than a conventional request for government payment. Related criminal investigations may proceed under customs laws, false-statement statutes, wire fraud, or conspiracy rather than § 287 alone.
What to Do If You’re Facing Criminal Exposure Under the False Claims Act
A subpoena, agent contact, civil investigative demand, unsealed complaint, or DOJ target letter should be reviewed before statements are made or records are produced beyond what is legally required.
Counsel can assess the investigation’s scope, coordinate with civil attorneys, preserve relevant evidence, evaluate interview requests, and identify conflicts between individual and organizational interests. Internal reviews should also be structured to protect applicable privileges and avoid inconsistent accounts.
A Note for Civil Qui Tam and False Claims Act Counsel
Civil qui tam defense and criminal false-claims defense require different strategies. Document productions, witness preparation, privilege decisions, and settlement positions developed in the civil matter may affect a parallel criminal investigation.
While KelleterLaw does not serve as relator’s counsel or handle standalone civil qui tam defense, we can work alongside civil FCA counsel when the facts create potential criminal exposure and coordinated representation is needed.
Key Takeaways
- Civil false-claims liability arises under 31 U.S.C. § 3729, while criminal charges arise under 18 U.S.C. § 287.
- Section 287 requires a knowingly false, fictitious, or fraudulent claim against the United States.
- A conviction can carry up to five years in prison per count.
- The general criminal limitations period is five years.
- Sections 286, 1001, 1343, and 1347 may also apply.
- Qui tam and criminal matters can proceed in parallel.
Conclusion
The civil False Claims Act and 18 U.S.C. § 287 address related conduct through different legal systems. A matter that begins as an audit, billing dispute, or qui tam lawsuit can carry criminal consequences when prosecutors believe a claim was knowingly false.
Statements, document productions, and litigation positions developed in the civil case may affect the criminal analysis. That exposure should be evaluated before responding to investigators or making strategic commitments.
Talk to a Federal Criminal Defense Attorney at KelleterLaw
If you have received a subpoena, been contacted by federal agents, or learned that a qui tam matter may involve criminal review, speak with a Federal criminal defense attorney before responding.
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