Compliance Programs:
G. Initiate any internal investigation based upon credible information concerning reported offenses.
H. Consistently enforce company policies and procedures through corrective action.
A contractor is liable to the Government for a civil penalty of not less than $5,000 and not more than $10,000 for each false claim plus three (3) times amount of damages which the Government sustains because of the false claims. Each invoice is routine claim against the Government, so each invoice submitted to the Government that is false is subject to the civil penalty. If an employee knowingly (A) submits a false or fraudulent claim against the Government, he or she may be subject to a fine of $25,000 and imprisonment of five (5) years; and (B) makes false or misleading statements to the Government regarding the claims submitted, that person may be subject to a fine of $10,000 and imprisonment for up to five (5) years for each false statement.
Protect yourself and your company to the greatest extent possible by implementing and enforcing a vibrant compliance program within the company without delay!! The longer you delay implementing such a Government contract compliance program, your company is at risk. Regardless of your company size, the Justice Department will not hesitate to prosecute your company for violations of the False Claims Act of other felonies and fraud, waste, and abuse.
Tom Petruska, Owner
Contracts Unlimited, Incorporated
The foregoing is not legal advice nor is it a legal opinion. Please contact your attorney for legal advice.
Do you need assistance with Compliance Programs or other contracting issues?
