Effective August 1, 2016, the penalties available under the False Claims Act will increase to a minimum of $10,781 to a maximum of $21,563. Prior to this adjustment, the penalties available under the FCA ranged from a minimum of $5,500 to a maximum of $11,000. This adjustment represents a significant increase, and will further the goal of FCA penalties – deterring fraudulent claims against the government.
The penalty increases are the result of the Federal Civil Monetary Penalties Inflation Adjustment Act of 1990. This Act provides for the regular evaluation and adjustment for inflation of civil monetary penalties to ensure that they continue to maintain their deterrent effect. For more about this adjustment, click here