What kind of penalties may be imposed under the False Claims Act for each claim filed?

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The False Claims Act allows for significant penalties for individuals or entities that knowingly submit false claims for payment to the government. The correct answer is that treble damages may be imposed, meaning that if a false claim is identified, the amount of damages sustained by the government can be tripled. This is intended to deter fraudulent behavior and ensure that those who commit fraud face serious financial consequences for their actions.

In addition to treble damages, the False Claims Act also authorizes fixed monetary penalties per false claim, but the key feature here is the treble damages, which is a stronger disincentive than simply assessing double damages or fixed penalties. This structure reflects the seriousness of the fraud and the government’s intent to recover not only the actual damages but to impose additional penalties as a punitive measure against fraudsters.

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