Waxman Litigation defends companies against False Claims Act claims. It does not act for relators. Liability arises under 31 U.S.C. § 3729 for knowingly presenting a false or fraudulent claim for payment or approval. Most cases begin not with the government but with a private individual, a relator, filing under seal under 31 U.S.C. § 3730(b), which is why a company often learns of a case long after it started.
Waxman Litigation acts for companies and their boards. Seth B. Waxman spent 13 years as an Assistant United States Attorney in the District of Columbia, roughly eight of them on fraud and public corruption.
What creates liability?
(a) Liability for Certain Acts.— (1) In general.— Subject to paragraph (2), any person who— (A) knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval; (B) knowingly makes, uses, or causes to be made or used, a false record or statement material to a false or fraudulent claim; (C) conspires to commit a violation of subparagraph (A), (B), (D), (E), (F), or (G); (D) has possession, custody, or control of property or money used, or to be used, by the Government and knowingly delivers, or causes to be delivered, less than all of that money or property; (E) is authorized to make or deliver a document certifying receipt of property used, or to be used, by the Government and, intending to defraud the Government, makes or delivers the receipt without completely knowing that the information on the receipt is true; (F) knowingly buys, or receives as a pledge of an obligation or debt, public property from an officer or employee of the Government, or a member of the Armed Forces, who lawfully may not sell or pledge property; or (G) knowingly makes, use
31 U.S.C. § 3729How a qui tam case begins
(b) Actions by Private Persons.— (1) A person may bring a civil action for a violation of section 3729 for the person and for the United States Government. The action shall be brought in the name of the Government. The action may be dismissed only if the court and the Attorney General give written consent to the dismissal and their reasons for consenting. (2) A copy of the complaint and written disclosure of substantially all material evidence and information the person possesses shall be served on the Government pursuant to Rule 4(d)(4) [1] of the Federal Rules of Civil Procedure. The complaint shall be filed in camera, shall remain under seal for at least 60 days, and shall not be served on the defendant until the court so orders. The Government may elect to intervene and proceed with the action within 60 days after it receives both the complaint and the material evidence and informati
31 U.S.C. § 3730⭐ The consequence of the seal is practical: by the time a company is served, the government may have been investigating for a considerable period, and the relator is usually an insider. Defending well starts with understanding what the government already has.
Defending a company-side case
The elements are the ground: what was presented, what was known, and whether it was false. Parallel criminal exposure is common in health care and government-contracting matters. See health care fraud, government contracting fraud and parallel proceedings.
Where the allegation originates internally, a properly-run internal investigation, conducted for the company, with the privilege position thought through in advance, is usually the first substantive step.
What does the False Claims Act actually expose a defendant to?
The False Claims Act is civil, and its exposure is financial rather than custodial, treble damages plus a per-claim civil penalty. That is why FCA matters so often run alongside a criminal investigation: the same conduct can be charged under the criminal statutes in the bottom rows.
| Provision | Official heading | What it carries |
|---|---|---|
| 31 U.S.C. § 3729 | False claims | 3 times the amount of damages the Government sustains, plus a civil penalty of not less than $5,000 and not more than $10,000 per claim, as adjusted for inflation under the Federal Civil Penalties Inflation Adjustment Act |
| 31 U.S.C. § 3730 | Civil actions for false claims | The qui tam mechanism — a private relator may sue on the Government’s behalf, and the Government may intervene |
| 18 U.S.C. § 1001 | Statements or entries generally | 5 years (8 if terrorism-related) |
| 18 U.S.C. § 1519 | Destruction, alteration, or falsification of records in Federal investigations | 20 years |
Frequently asked questions
Does the firm act for whistleblowers?
No. Waxman Litigation acts for companies and their boards, and defends against False Claims Act claims.
Why did we not know a case had been filed?
Qui tam complaints are filed under seal, so a company may be unaware for a considerable period. See 31 U.S.C. § 3730(b).
Is an FCA case criminal?
The False Claims Act is civil. The same facts can attract separate criminal exposure, which is why the tracks are managed together.
What should we do on learning of a claim?
Preserve records and take advice before any internal inquiries begin. Statements and document handling carry their own exposure under §§ 1001 and 1519.
Who receives the money if a whistleblower case succeeds?
The relator takes a defined slice. Under 31 U.S.C. § 3730(d)(1), where the Government proceeds with an action brought under subsection (b), that person receives at least 15 percent but not more than 25 percent of the proceeds of the action or settlement, depending on how substantially they contributed to the prosecution.
When does the government’s time to bring an FCA claim run out?
On whichever of two limits falls later. 31 U.S.C. § 3731(b) bars an action brought more than 6 years after the violation, or more than 3 years after the date the responsible United States official knew or reasonably should have known the material facts — but in no event more than 10 years after the violation.
Where can a witness be required to attend?
A witness can be required to attend from anywhere in the country. A subpoena for attendance at a trial or hearing under the statute may be served at any place in the United States, which is a far wider reach than ordinary civil practice allows. See 31 U.S.C. § 3731(a).
Who pays the defendant’s legal fees if the claim was baseless?
The relator can be ordered to. Under 31 U.S.C. § 3730(d)(4), where the Government does not proceed and the person bringing the action conducts it, the court may award the prevailing defendant reasonable attorneys’ fees and expenses if it finds the claim was clearly frivolous, clearly vexatious, or brought primarily for purposes of harassment.
Sources and legal authorities
General information about federal law, not legal advice, and not a prediction of any outcome. Federal criminal exposure turns on facts this page cannot assess. If your company has been contacted by investigators or has received a subpoena, take advice before gathering documents or interviewing staff.
Related: White-Collar Defense · Government Contracting Fraud · Health Care Fraud · Parallel Criminal & Civil Proceedings · Internal Investigations. Call (301) 901-3109 or use the contact page.