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(A
version of this article will appear in the Construction Law Digests,
published by the West Group.)
By James E. Acret
The
False Claims Act provides for civil penalties against “any person”
who “knowingly presents… to an officer or employee of the United States
government… a false or fraudulent claim for payment or approval.”
31 USC §3729 (a) (1). If the claim succeeds, the defendant is liable
to the government for a civil penalty of $5,000 to $10,000 for each violation,
treble damages and costs. Relator
filed this qui tam action claiming that Cook County submitted false statements
to obtain grant funds to study a treatment regimen for pregnant drug addicts.
The county moved to dismiss the action, arguing that it was not a “person.”
The 7th U.S. Circuit Court of Appeals held that local governments commonly receive
all sorts of federal funding and that Congress intended them to be “persons”
subject to the False Claims Act. Cook County, Illinois v. U.S. ex rel. Chandler,
538 U.S. 119, 2003 DJDAR 2775 (7th Cir. 2003).
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To learn more about Thelen Reid's Construction and Government Contracts Department, click here. For more information about books and other legal materials written by James Acret, click here and enter "Acret" in the Search Products Field. To learn more about topics covered in this article, contact Paul Berning at (415) 369-7229 or at pwberning@thelen.com.
©2004 Thelen Reid Brown Raysman & Steiner LLP
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