                                 CODE OF VIRGINIA

FALSE CLAIMS; CIVIL PENALTY (§ 8.01-216.3)

A. Any person who:

   1. Knowingly presents, or causes to be presented, a false or fraudulent claim
   for payment or approval;

   2. Knowingly makes, uses, or causes to be made or used, a false record or
   statement material to a false or fraudulent claim;

   3. Conspires to commit a violation of subdivision 1, 2, 4, 5, 6, 7, 8, or 9;

   4. Has possession, custody, or control of property or money used, or to be
   used, by the Commonwealth and knowingly delivers, or causes to be delivered,
   less than all such money or property;

   5. Has possession, custody, or control of an illegal gambling device, as
   defined in &#xA7; 18.2-325, knowing such device is illegal, and knowingly
   conceals, avoids, or decreases an obligation to pay or transmit money to the
   Commonwealth that is derived from the operation of such device;

   6. Manufactures for sale, sells, or distributes an illegal gaming device
   knowing that such device is or is intended to be operated in the Commonwealth
   in violation of Article 1 (&#xA7; 18.2-325 et seq.) or Article 1.1:1 (&#xA7;
   18.2-340.15 et seq.) of Chapter 8 of Title 18.2;

   7. Is authorized to make or deliver a document certifying receipt of property
   used, or to be used, by the Commonwealth and, intending to defraud the
   Commonwealth, makes or delivers the receipt without completely knowing that
   the information on the receipt is true;

   8. Knowingly buys or receives as a pledge of an obligation or debt, public
   property from an officer or employee of the Commonwealth who lawfully may not
   sell or pledge the property; or

   9. Knowingly makes, uses, or causes to be made or used, a false record or
   statement material to an obligation to pay or transmit money or property to
   the Commonwealth or knowingly conceals or knowingly and improperly avoids or
   decreases an obligation to pay or transmit money or property to the
   Commonwealth;
   				shall be liable to the Commonwealth for a civil penalty of not less than
   $10,957 and not more than $21,916, except that these lower and upper limits on
   liability shall automatically be adjusted to equal the amounts allowed under
   the Federal False Claims Act, 31 U.S.C. &#xA7; 3729 et seq., as amended, as
   such penalties in the Federal False Claims Act are adjusted for inflation by
   the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended (28
   U.S.C. &#xA7; 2461 Note, P.L. 101-410), plus three times the amount of damages
   sustained by the Commonwealth.
   				A person violating this section shall be liable to the Commonwealth for
   reasonable attorney fees and costs of a civil action brought to recover any
   such penalties or damages. All such fees and costs shall be paid to the
   Attorney General&#8217;s Office by the defendant and shall not be included in
   any damages or civil penalties recovered in a civil action based on a
   violation of this section.

B. If the court finds that (i) the person committing the violation of this
section furnished officials of the Commonwealth responsible for investigating
false claims violations with all information known to the person about the
violation within 30 days after the date on which the defendant first obtained
the information; (ii) such person fully cooperated with any Commonwealth
investigation of such violation; (iii) at the time such person furnished the
Commonwealth with the information about the violation, no criminal prosecution,
civil action, or administrative action had commenced with respect to such
violation; and (iv) the person did not have actual knowledge of the existence of
an investigation into such violation, the court may assess not less than two
times the amount of damages that the Commonwealth sustains because of the act of
that person. A person violating this section shall also be liable to the
Commonwealth for the costs of a civil action brought to recover any such penalty
or damages.

C. For purposes of this section, the terms &#8220;knowing&#8221; and
&#8220;knowingly&#8221; mean that a person, with respect to information, (i) has
actual knowledge of the information; (ii) acts in deliberate ignorance of the
truth or falsity of the information; or (iii) acts in reckless disregard of the
truth or falsity of the information and require no proof of specific intent to
defraud.

D. Except as provided in subdivision A 5, this section shall not apply to
claims, records, or statements relating to state or local taxes.

HISTORY: 2002, c. 842; 2004, c. 589; 2007, c. 569; 2011, c. 676; 2018, c. 624;
2020, c. 791; 2022, c. 553.