False Claims Act The False Claims Act of 1863 offer whistle-blowers rewards for disclosing fraud committed against the US government. This act was enacted in response to the rampant abuses by defense contractors who were supplying the government with Medicaid during the civil war (Carson, 2008). The False Claims Act called on individuals to bring to justice those found defrauding the government. Their role was to bring “qui tam” suits against those found defrauding the government. Under this act, both civil and criminal penalties could be assessed against any individual found guilty of defrauding the government. This act helps in controlling cost associated with Medicaid programs bringing to justice whoever found presenting false claims to the government. In addition, this Act ensured that persons found guilty of defrauding the government paid double the damages they caused the government. Again, defrauders had to pay a fine of $ 2,000 for false claim.
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