18 U.S.C. § 287 – False claims against U.S. government

18 U.S.C. § 287 – False Claims Against the U.S. Government

Making false claims against the government can lead to serious criminal penalties. 18 U.S.C. § 287 makes it a federal crime to knowingly present a false or fraudulent claim against any department or agency of the United States. This law imposes fines and up to 5 years in prison for violations. But what exactly constitutes a “false claim” under § 287? When does a claim cross the line into criminality? Let’s break down this complex statute.

What is a “Claim” Under § 287?

First, § 287 applies specifically to “claims” made against the federal government. This includes any demand for money or property, whether made directly or through a third party. Common examples include:

• Billing Medicare/Medicaid for services never provided
• Seeking reimbursement for fake travel or business expenses
• Filing for tax refunds based on false information
• Submitting inflated invoices to obtain government contracts

Not all requests for payment qualify as a “claim.” For instance, § 287 does not apply to anyone merely seeking government benefits, like Social Security or food stamps. The request must relate to an alleged debt or obligation owed by the government.

What Makes a Claim “False” Under § 287?

For criminal liability, the claim must be objectively false or fraudulent. This means either:

1. The claim is based on information known to be untrue, or
2. The claim intentionally conceals or omits material facts to deceive the government.

Mere mistakes or inaccuracies are not enough. The person must have actual knowledge that the claim is false. This is a high standard that requires proof of intent to defraud [1].

Can Opinions Be False Claims?

No, statements of opinion or scientific judgment cannot violate § 287. For example, a doctor cannot be prosecuted for an honest medical opinion about a patient’s condition, even if it turns out to be wrong. There must be factual falsity about the underlying claim itself [2].

What About Exaggerated or “Inflated” Claims?

Inflating a claim can constitute a false claim in certain cases. This often happens with government contractors padding expenses or work hours on invoices. However, courts have held that “minor” or “immaterial” discrepancies don’t necessarily violate § 287. The inflation must be significant enough to cross into fraudulent territory [3].

Are False Statements Enough?

No, false statements alone do not violate § 287. There must be an actual claim for money or property. For example, lying on a form to obtain government benefits is not covered by § 287. However, submitting that form to collect benefits would be a false claim.

False statements may violate other laws, like 18 U.S.C. § 1001 for false statements or 18 U.S.C. § 1341 for frauds by mail. But § 287 requires an actual claim.

What About Conspiracies or Attempts?

Conspiring to violate § 287 carries the same 5-year maximum sentence as the substantive crime. The government does not have to prove an actual false claim was made, only that the defendants agreed to do so. Attempting to violate § 287 is also punishable, even if the claim was not ultimately submitted [4].

Are There Defenses to False Claims?

Yes, possible defenses to § 287 charges include:

• Lack of intent – The person did not knowingly submit a false claim.
• Good faith – The person had an honest, reasonable belief the claim was valid.
• Advice of counsel – The person relied on the advice of legal counsel in submitting the claim.
• Statute of limitations – Too much time has passed between the claim and charges (generally 5 years).

The complexity of § 287 makes consulting an attorney critical when facing an investigation or indictment.

What Are the Penalties for Violating § 287?

Conviction under § 287 carries:

• Up to 5 years in federal prison
• Fines up to $250,000 for individuals or $500,000 for organizations
• Full restitution to the government
• Forfeiture of any property derived from proceeds of the false claims

These substantial penalties make § 287 a serious felony offense. The government often pursues false claims cases aggressively, especially those involving public health programs like Medicare.

Recent False Claims Act Cases

The Department of Justice recovers billions of dollars annually through False Claims Act cases, both criminal and civil. Recent examples include:

• A drug company paid $257 million to resolve claims it paid kickbacks to doctors to prescribe its fentanyl spray [5].
• A hospital system paid $260 million over allegations it defrauded Medicare through improper admissions and billing [6].
• A university paid $54 million over claims it fraudulently obtained federal grants for research .

These settlements illustrate the variety of false claims prosecuted by the DOJ. Any person or entity doing business with the government should ensure vigorous compliance to avoid liability.

The Bottom Line

False claims against federal agencies or programs is a serious matter with steep criminal penalties. Anyone facing a § 287 investigation should retain experienced legal counsel immediately. An attorney can carefully evaluate the case and build the strongest defenses. With skilled advocacy, some charges may get dismissed or reduced to avoid the worst outcomes. Don’t wait to protect your rights and future.