United States of America v. American Plastics, L.L.C.

Knoxville, Tennessee, criminal defense lawyers represented the Defendant accused of violation the False Claims Act, 31 U.S.C. 3729-3733.



The False Claims Act (FCA, 31 U.S.C. §§ 3729–3733), also known as "Lincoln's Law," is the United States government's primary civil anti-fraud statute. It makes it illegal to knowingly submit, or cause to be submitted, false or fraudulent claims for payment to the federal government.

Key Provisions & Liability

• Prohibited Acts: Submitting false claims, using false records to get a claim paid, conspiring to defraud the government, or engaging in "reverse false claims" (improperly avoiding or decreasing an obligation to pay money to the government).
• Knowledge Standard: "Knowingly" means actual knowledge, deliberate ignorance, or reckless disregard of the truth. Specific intent to defraud is not required.
• Common Areas: Most frequently applied to healthcare fraud (such as Medicare and Medicaid billing for services not rendered or upcoding), defense contracting, and customs/tariff evasions.

Penalties & Damages

• Treble Damages: Violators are liable for three times the actual damages the government sustains.
• Civil Penalties: Adjusted for inflation, civil penalties range roughly from $13,946 to $28,619 per false claim (varying based on the year of the violation).

The Qui Tam (Whistleblower) Provision

• Private Suits: The FCA includes a unique qui tam provision allowing private citizens, known as relators, to file lawsuits on behalf of the United States against entities committing fraud.
• Under Seal: Complaints are filed under seal so the Department of Justice can investigate privately before deciding whether to intervene and take over the litigation.
• Whistleblower Rewards: If the suit succeeds, the relator typically receives 15% to 30% of the total recovery, depending on whether the government intervenes.
• Anti-Retaliation: The act protects employees from workplace retaliation, offering remedies like reinstatement, double back pay, and legal fees.

Settled for $2,249,459.70.