The False Claims Act imposes liability on any person who knowingly submits, or causes to be submitted, a false or fraudulent claim to the federal government. While the FCA is primarily known for its civil provisions, which allow for treble damages and significant per-claim penalties, the federal government frequently pursues parallel criminal proceedings under 18 U.S.C. § 287 (Criminal False Claims) and 18 U.S.C. § 1347 (Health Care Fraud), among other statutes.

Under 31 U.S.C. § 3729(a)(1), liability attaches to any person who:

Knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval;

Knowingly makes, uses or causes to be made or used, a false record or statement material to a false or fraudulent claim;

Conspires to commit a violation of the FCA; or

Knowingly makes, uses or causes to be made or used, a false record or statement material to an obligation to pay or transmit money or property to the Government, or knowingly conceals or knowingly and improperly avoids or decreases an obligation to pay or transmit money or property to the Government (known as a “reverse false claim”).

**The Knowledge Requirement (Scienter)** A critical element of the FCA is the “knowing” requirement. The statute defines “knowing” and “knowingly” to mean that a person:

Has actual knowledge of the information;

In federal criminal cases, judges are required to consult the United States Sentencing Guidelines (U.S.S.G.) when determining an appropriate sentence. While the Guidelines are advisory following the Supreme Court’s decision in *United States v. Booker*, they remain the starting point and anchor for all federal sentencings.

Criminal convictions related to false claims are typically sentenced under U.S.S.G. § 2B1.1, which governs offenses involving fraud and deceit.

The **Base Offense Level** for most fraud offenses under § 2B1.1 is 6 (or 7 if the statutory maximum term of imprisonment is 20 years or more).

The most significant driver of the final offense level is the **Loss Amount** under § 2B1.1(b)(1). The Guidelines dictate substantial increases to the offense level based on the financial loss suffered by the government. For example, a loss of more than $150,000 adds 10 levels, while a loss exceeding $1.5 million adds 16 levels. The court will consider both the “actual loss” (the amount actually paid out by the government) and the “intended loss” (the amount the defendant sought to obtain), using whichever is greater.

Several specific offense characteristics can further increase the defendant’s sentencing exposure: