Any time someone makes a false statement in order to receive a payment from the Federal Government (like a Federal grant, for example), it’s called a “false claim.” The False Claims Act allows anyone who knows about the false claim to bring a lawsuit against the person who made it.
The person who made the false claim has to pay back three times the amount of the payment. The person who brings the lawsuit gets to keep from 15% to 30% of that money. Worse for the person who made the claim, this can mean permanent debarment from Federal grant awards.
Please visit the latest issue of Valley Business Front September [PDF link] for a case study on this topic.
And if you’re interested in learning more about grant management, join us at our next round of Shark Bites this month.