7.23 Virginia Fraud Against Taxpayers Act

• Library: Virginia Construction Law Deskbook (Virginia CLE) (2019 Ed.)

7.23 VIRGINIA FRAUD AGAINST TAXPAYERS ACT

7.2301 In General. The Virginia Fraud Against Taxpayers Act (VFATA) ⁵⁹⁹ is Virginia's version of the Federal False Claims Act. ⁶⁰⁰ The VFATA prohibits and penalizes presentation of false or fraudulent claims to the Commonwealth for payment or approval. ⁶⁰¹ A civil action for violation of the VFATA can be filed by the Attorney General. ⁶⁰² In addition, the VFATA permits "whistleblower" or qui tam actions brought by private parties in the name of the Commonwealth. ⁶⁰³

7.2302 Prohibited Acts. Under Virginia law, the prohibited false or fraudulent acts include:

1. Knowingly presenting or causing to be presented false or fraudulent claims for payment or approval;

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2.	Knowingly making, using, or causing to be made or used, a false record or statement material to a false or fraudulent claim;
3.	Conspiring to commit any of the other prohibited acts;
4.	Having possession, custody, or control of property or money used, or to be used, by the Commonwealth and knowingly delivering, or causing to be delivered, less than all such money or property;
5.	Having been 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, making or delivering the receipt without completely knowing that the information on the receipt is true;
6.	Knowingly buying or receiving 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
7.	Knowingly making, using, or causing 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 concealing or knowingly and improperly avoiding or decreasing an obligation to pay or transmit money or property to the Commonwealth. 604

Any person committing any of the prohibited acts is liable to the Commonwealth for a civil penalty of not less than $10,957 and not more than $21,916, plus three times the amount of damages sustained by the Commonwealth. ⁶⁰⁵ The offender is also liable for reasonable attorney fees and costs of a civil action for recovery of the penalties. ⁶⁰⁶ Violations of the VFATA are investigated by the Office of the Attorney General. ⁶⁰⁷

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7.2303 Cooperation by Offender. A person violating the VFATA may reduce the penalties assessed against him or her by (i) furnishing to the Attorney General all information known to the violator about the violation within 30 days after the date on which the violator first obtained the information, and (ii) fully cooperating with any Commonwealth investigation of the violation. If these conditions are met, the court may assess not less than two times the amount of damages that the Commonwealth sustained because of the violation, plus the costs of a civil action brought to recover any such penalty or damages. This relief is not available if, at the time the violator furnished the Commonwealth with the information about the violation, a criminal prosecution, civil action, or administrative action had commenced with respect to the violation, and the violator had actual knowledge of the existence of an investigation into the violation. ⁶⁰⁸

7.2304 Qui Tam Actions.

A. Procedure. Qui tam actions are...