Brief Fact Summary. The Government (Plaintiff) brought suit against the Krizeks (Defendants), a psychiatrist and his wife, for violating the False Claims Act by overbilling.
Synopsis of Rule of Law. A violation of the False Claims Act for “knowingly” filing false claims may be established without reference to the subjective intent of the defendant.
A correct application of the statutory language requires that the focus in each case be upon the specific conduct of the person from whom the Government seeks to collect the statutory forfeitures.
View Full Point of LawIssue. May a violation of the False Claims Act for “knowingly” filing false claims be established without reference to the subjective intent of the defendant?
Held. (Sentelle, J.) Yes. A violation of the False Claims Act for “knowingly” filing false claims may be established without reference to the subjective intent of the defendant. A person acts knowingly if he has actual knowledge of the information, acts in deliberate ignorance of the truth or falsity of the information, or acts in reckless disregard of the truth or falsity of the information. Dr. Krizek (Defendant) delegated the authority to his wife to submit claims on his behalf. In completely failing to review the false submissions, he acted with reckless disregard. The district court erred in its calculation of the civil penalty. Reversed and remanded.
Discussion. The court in this case found that the district court’s determination that the Krizeks (Defendants) had acted with reckless disregard was sufficiently supported by the evidence. The doctor was equally as liable as his wife. Their actions rose to the level of reckless disregard because there was little or no factual basis to multiple submissions.