[Code of Federal Regulations]
[Title 28, Volume 2]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 28CFR71.3]

[Page 284-285]
 
                    TITLE 28--JUDICIAL ADMINISTRATION
 
              CHAPTER I--DEPARTMENT OF JUSTICE (Continued)
 
PART 71--IMPLEMENTATION OF THE PROVISIONS OF THE PROGRAM FRAUD CIVIL REMEDIES ACT OF 1986--Table of Contents
 
  Subpart A--Implementation for Actions Initiated by the Department of 
                                 Justice
 
Sec. 71.3  Basis for civil penalties and assessments.

    (a) Any person shall be subject, in addition to any other remedy 
that may be prescribed by law, to a civil penalty of not more than 
$5,000 for each claim listed in paragraphs (a)(1) through (a)(4) of this 
section made before September 29, 1999, and not more than $5,500 for 
each such claim made on or after September 29, 1999, if that person 
makes a claim that the person knows or has reason to know:
    (1) Is false, ficticious, or fraudulent;
    (2) Includes, or is supported by, any written statement which 
asserts a material fact which is false, ficticious or fraudulent;
    (3) Includes or is supported by, any written statement that
    (i) Omits a material fact;

[[Page 285]]

    (ii) Is false, ficticious, or fraudulent as a result of such 
omission; and
    (iii) Is a statement in which the person making such a statement has 
a duty to include such material fact; or
    (4) Is for payment for the provision of property or services which 
the person has not provided as claimed.
    (b) Each voucher, invoice, claim form, or other individual request 
or demand for property, services, or money constitutes a separate claim.
    (c) A claim shall be considered made to the authority, recipient, or 
party when such claim is actually made to an agent, fiscal intermediary, 
or other entity, including any State or political subdivision thereof, 
acting for or on behalf of the authority, recipient, or party.
    (d) Each claim for property, services, or money is subject to a 
civil penalty regardless of whether such property, services, or money is 
actually delivered or paid.
    (e) If the Government has made any payment (including transferred 
property or provided services) on a claim, a person subject to a civil 
penalty under paragraph (a)(1) of this section shall also be subject to 
an assessment of not more than twice the amount of such claim or that 
portion thereof that is determined to be in violation of paragraph 
(a)(1) of this section. Such assessment shall be in lieu of damages 
sustained by the Government because of such claim.
    (f) Any person shall be subject, in addition to any other remedy 
that may be prescribed by law, to a civil penalty of not more than 
$5,000 for each statement listed in paragraphs (f)(1) and (f)(2) of this 
section made before September 29, 1999, and not more than $5,500 for 
each such statement made on or after September 29, 1999, if that person 
makes a written statement that:
    (1) The person knows or has reason to know
    (i) Asserts a material fact which is false ficticious, or 
fraudulent; or
    (ii) Is false, fictitious, or fraudulent because it omits a material 
fact that the person making the statement has a duty to include in such 
statement; and
    (2) Contains, or is accompanied by, an express certification or 
affirmation of the truthfulness and accuracy of the contents of the 
statement.
    (g) Each written representation, certification, or affirmation 
constitutes a separate statement.
    (h) A statement shall be considered made to the authority when such 
statement is actually made to an agent, fiscal intermediary, or other 
entity, including any State or political subdivision thereof, acting for 
or on behalf of the authority.
    (i) No proof of specific intent to defraud is required to establish 
liability under this section.
    (j) In any case in which it is determined that more than one person 
is liable for making a claim or statement under this section, each such 
person may be held liable for a civil penalty under this section.
    (k) In any case in which it is determined that more than one person 
is liable for making a claim under this section on which the Government 
has made payment (including transferred property or provided services), 
an assessment may be imposed against any such person or jointly and 
severally against any combination of such persons.

[Order No. 1268-88, 53 FR 11646, Apr. 8, 1988, as amended by Order No. 
2249-99, 64 FR 47103, Aug. 30, 1999]