FCA Penalties Set To Double, Raising Fears Of Excess Fines

By Jeff Overley (May 3, 2016, 8:35 PM EDT) -- False Claims Act penalties would double under a federal regulation released this week, an increase likely to surprise some corporations and fuel arguments about constitutionally excessive punishment, attorneys say.

The regulation emerged Monday from an obscure agency called the Railroad Retirement Board, which occasionally generates FCA cases involving fraudulent benefit claims. In an interim final rule, the board became the first federal agency to adjust FCA penalties for inflation in accordance with a budget deal that Congress struck last year.

Under the rule, minimum per-claim penalties would rise to $10,781 from $5,500, and maximum per-claim penalties would rise to $21,563 from...

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