Federal False Claims Act – 18 U.S.C. § 287: Complete Legal Guide

18 U.S.C. § 287 is a federal criminal statute that makes it illegal to knowingly submit false, fictitious, or fraudulent claims to the United States government or any of its departments and agencies.

Commonly prosecuted by federal attorneys in matters involving Medicare billing fraud, defense procurement schemes, and federal grant misuse, Section 287 carries penalties of up to 5 years in federal prison per count, substantial fines, and mandatory financial restitution.

What Is 18 U.S.C. § 287?

18 U.S.C. § 287 criminalizes the presentation of false or fraudulent requests for payment or approval to the federal government. Unlike general wire or mail fraud statutes, Section 287 specifically targets deceptive claims directly or indirectly affecting federal government funds and property.

Key Statutory Principles

Scope of Application: Applies to individuals, corporate executives, medical practices, defense contractors, and third-party vendors.
Jurisdictional Trigger: The demand or request for payment must be submitted to a department, agency, or authorized representative of the United States.
Focus on Intent: Prosecutions require proof that the party acted knowingly, distinguishing criminal fraud from honest accounting or billing mistakes.

Core Types of Prohibited Conduct Under Section 287

Federal prosecutors use Section 287 across sectors to target schemes that extract government funds through misrepresentation.

1. Submitting False Claims for Payment

Directly requesting payment with inflated charges, billing for unprovided services/goods, or seeking reimbursement for non-qualifying expenses.

2. Causing False Claims to Be Submitted

Directing employees, subcontractors, or third-party billing management companies to process improper billing requests on an enterprise's behalf.

3. Using Falsified Supporting Documentation

Submitting deceptive medical charts, altered procurement contracts, fabricated timecards, or misleading compliance certifications to validate a claim.

4. Concealing Material Eligibility Information

Omitting critical facts—such as failing to return known overpayments or hiding non-compliance with statutory guidelines—to maintain entitlement to federal funds.

Criminal False Claims vs. Related Federal Statutes

Understanding how 18 U.S.C. § 287 interacts with civil remedies and related criminal charges is essential for evaluation and legal strategy.

Statutory Provision	Type & Purpose	Key Distinctions & Penalties
18 U.S.C. § 287 (Criminal False Claims)	Criminal Statute Punishes the knowing submission of false claims to federal agencies.	Up to 5 years in prison per count, criminal fines, and mandatory restitution. Requires proof beyond a reasonable doubt.
31 U.S.C. §§ 3729–3733 (Civil False Claims Act)	Civil Remedy Recovers government losses and imposes statutory civil penalties.	Treble (3x) damages plus inflation-adjusted per-claim civil penalties. Features Qui Tam (whistleblower) provisions.
18 U.S.C. § 1347 (Healthcare Fraud)	Criminal Statute Targets schemes to defraud any healthcare benefit program.	Up to 10 years in prison (longer if bodily harm occurs); frequently charged alongside § 287 in medical cases.

Hypothetical Case Example: Government Contracting Fraud

Scenario: Apex Defense Solutions, a federal logistics vendor, secures a contract to supply specialized field equipment to a military installation. Due to supply chain delays, Apex substitutes lower-grade commercial components that cost 40% less to produce. However, Apex prepares and submits electronic invoices to the Department of Defense billing for the higher-grade military-spec equipment.

Application of 18 U.S.C. § 287:

Presentation of Claim: Apex submitted electronic invoices directly to a federal agency payment portal.
Falsity: The invoices certified that contract specifications were met, which was factually inaccurate.
Knowledge & Intent: Management knowingly approved the substitution and invoice to maintain projected profit margins.

Outcome: Even if the military auditing team catches the error before issuing payment, the act of submitting the false claim completes the offense under 18 U.S.C. § 287. Company executives face potential federal indictment carrying up to 5 years per false invoice submitted.

Penalties and Federal Sentencing Guidelines

A conviction under 18 U.S.C. § 287 exposes defendants to strict penalties evaluated on a per-count basis under the United States Sentencing Guidelines (USSG).

Imprisonment: Up to 5 years in federal prison per count. Prosecutors can charge multiple fraudulent invoices separately, increasing exposure.
Criminal Fines: Up to $250,000 for individuals per count, or up to $500,000 (or more) for corporations.
Mandatory Restitution: Full financial repayment of losses suffered by the federal government under the Mandatory Victims Restitution Act (MVRA).
Impact of "Loss Amount": USSG calculations rely on the intended or actual loss amount. Higher monetary values drastically increase offense levels and recommended prison terms.
Collateral Consequences: Mandatory exclusion from federal programs (Medicare/Medicaid), revocation of professional licenses, and debarment from federal contracting.

Related Federal Statutes

Federal prosecutors rarely charge 18 U.S.C. § 287 in isolation. Depending on the industry, communication methods, and structure of the alleged scheme, federal authorities often pair Section 287 charges with—or indict under—the following related statutes:

31 U.S.C. §§ 3729–3733 – Civil False Claims Act: The primary civil counterpart to Section 287, allowing the federal government or private whistleblowers (qui tam relators) to recover treble damages and mandatory per-claim civil penalties for false payment requests.
18 U.S.C. § 1001 – False Statements: Criminalizes knowingly making false, fictitious, or fraudulent statements or submitting falsified documents to any executive, legislative, or judicial branch of the U.S. government, regardless of whether a direct claim for payment was presented.
18 U.S.C. § 1347 – Healthcare Fraud: Targets schemes executed to defraud any healthcare benefit program or secure money under false pretenses from federal healthcare systems like Medicare or Medicaid.
42 U.S.C. § 1320a-7b – Anti-Kickback Statute (AKS): Makes it a federal crime to knowingly offer, pay, solicit, or receive remuneration to induce or reward referrals for items or services payable by federal healthcare programs.
18 U.S.C. § 1343 – Wire Fraud: Prohibits using interstate wire communications, emails, online billing portals, or electronic fund transfers to execute a scheme to defraud.
18 U.S.C. § 1341 – Mail Fraud: Penalizes using the U.S. Postal Service or commercial interstate carriers (e.g., FedEx, UPS) to send fraudulent claims, invoices, or checks.
18 U.S.C. § 371 & § 286 – Conspiracy to Defraud the Government: Criminalizes agreements between two or more individuals to commit fraud against the U.S. or to obtain the allowance/payment of any false, fictitious, or fraudulent claim.

Strategic Legal Defenses Against Section 287 Charges

Mounting an effective defense against federal false claims allegations requires early intervention and thorough evidentiary analysis:

Lack of Intent / Absence of Knowledge: The prosecution must establish that the defendant acted knowingly. Demonstrating that actions resulted from confusion, administrative oversight, or ambiguity in federal regulations negates criminal intent.
Good Faith / Administrative Error: Complex federal billing frameworks (such as medical coding systems or FAR procurement regulations) frequently lead to honest mistakes. Good-faith errors do not constitute criminal fraud.
Reliance on Advice of Professionals: If actions were undertaken based on the full-disclosure advice of qualified CPA auditors, billing consultants, or legal counsel, this reliance can establish a lack of fraudulent intent.
Insufficient Evidence / Constitutional Violations: Defense teams can challenge the admissibility of evidence obtained via defective search warrants, improper subpoenas, or procedural errors during federal investigations to seek dismissal or reduction of charges.

Frequently Asked Questions (FAQs)

What constitutes a false claim under federal law?

A false claim is any bill, invoice, voucher, or request for government money, property, or services that contains materially untrue, misleading, or deceptive information submitted to a federal agency.

Can criminal charges be filed if the government never paid the claim?

Yes. 18 U.S.C. § 287 criminalizes presenting or submitting a false claim. The government does not need to pay the claim to secure a criminal conviction.

How does the government establish intent under 18 U.S.C. § 287?

Prosecutors use internal emails, accounting records, witness testimony, and billing patterns to demonstrate that a party acted with actual knowledge or deliberate ignorance of the claim's falsity.

Are simple billing or coding mistakes considered federal crimes?

No. Honest errors, clerical oversights, or technical coding misunderstandings lack the requisite criminal intent (mens rea) necessary for a conviction under Section 287.

What is the maximum sentence for an 18 U.S.C. § 287 violation?

The statutory maximum penalty is up to 5 years in federal prison for each count of false claims, plus criminal fines and mandatory restitution.

Can business entities be criminally prosecuted under Section 287?

Yes. Corporations, partnerships, and healthcare organizations can face criminal indictments, substantial corporate fines, program exclusion, and debarment under federal corporate liability principles.

Speak With a Federal Defense Attorney

If you or your organization are under investigation or facing charges under 18 U.S.C. § 287, prompt legal defense intervention is essential.

Federal agencies like the FBI, HHS-OIG, and DoD-OIG conduct comprehensive pre-indictment investigations long before charges are formally unsealed.

An experienced federal defense team can evaluate the allegations, manage communication with federal prosecutors, and build a defense focused on protecting your freedom and professional standing.

To arrange a confidential consultation regarding federal false claims defense, contact Eisner Gorin LLP at (818) 781-1570 or submit an inquiry through our secure contact portal.

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