Forensic Accountants Take on False Claims Act
June 11, 2022

Forensic accountants apply specialized knowledge and investigative skills to collect, analyze and evaluate evidential matter and to interpret and communicate findings in the courtroom, boardroom or other legal administrative venue. Now that we’ve covered that, curious what role these professionals play in connection with the United States’ Department of Justice? Here’s the rundown of how they assist in False Claims Act trials.

Q. What role can forensic accountants play in FCA matters?

A. There are many opportunities for forensic accountants in connection with FCA matters.  For example, they are often called upon to help clients assess the scope and the magnitude of the issue.  This evaluation is often critical, since the act provides for damages between $5,500 and $11,000 for each false claim submitted.  This, in turn, can result in significant potential damages because each invoice containing a false claim is subject to these penalties.  Forensic accountants, often working in conjunction with other industry specialists in areas such as medical billing, possess the skills and expertise to evaluate billings records and quantify a potentially false claim.

Moreover, the courts have held that an employer may be liable for an employee’s FCA violations when no or inadequate internal controls exist. Forensic accountants, either working individually or with other specialists in risk management, can help clients to evaluate the control environment, either before an issue arises or afterward.  Proactively, forensic accountants may be involved with projects such as compliance audits, data mining analyses and industry benchmarking and analyses.

ParenteBeard’s forensic, litigation and valuation services group has extensive experience in providing expert consulting and expert witness testimony in mediations, arbitrations and bench and jury trials. If you have questions regarding the False Claims Act, or think you may have information of a violation of this Act, reach out to a member of our leadership team.