The U.S. False Claims Act is a federal law, under which any entity or person who submits false claims for payment from government agencies can be prosecuted. The act prohibits knowingly submitting (or causing to be submitted) false claims for payment, or submitting a false statement that is material to a false claim. This act also contains “whistle blower” or “qui tam” provisions, which allow for persons who have evidence of fraud against government programs to sue for recovery of payments made for false claims. Whistle blowers may receive between 10 and 25 percent of funds recovered. The importance of this federal law to organizations and employees of organizations that sell and distribute medical devices, technology, software, pharmaceuticals, and provide health care or medical products cannot be overstated. Each organization and its employees must recognize the boundaries and implications in order to prevent fraud and stay within the law, while allowing the organization to be productive and profitable.
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