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DOJ Increases FCA Penalties

by | Apr 3, 2023 | News, Open Content

The U.S. Department of Justice recently announced inflationary increases to civil monetary penalties under the False Claims Act.

Like everything else, the cost of committing False Claims Act (FCA) violations is going up. The U.S. Department of Justice (DOJ) recently announced inflationary increases to civil monetary penalties under the FCA, the second such adjustment in less than one year. The adjustments are based on the Bureau of Labor Statistics’ Consumer Price Index for October 2022, and the applicable inflation factor for the adjustment is 1.07745.

The minimum FCA penalty increased from $12,537 to $13,508 per claim while the maximum penalty increased from $25,076 to $27,018 per claim, based on an inflation factor adjustment of 1.07745. The newest increase comes right after the minimum penalty went from $11,803 to $12,537 at the end of 2022, based on a 1.06222 inflation factor.

Program Fraud Civil Remedies Act violations that involve a false claim or false statement have also increased to $13,508 from $12,537. Fines relating to the Federal Property and Administrative Services Act and involve a violation relating to surplus government property are increased to $6,891 from $6,396. Fines for violations involving kickbacks under the Anti-Kickback Act increased from $25,076 to $27,018.

Find out more in upcoming issues of National Lab Reporter and Lab Compliance Advisor.