The False Claims Act and Government Enforcement: Key Insights

Former Justice Department Officials to Present Critical Insights on False Claims Act Enforcement

Two prominent legal experts with extensive Department of Justice (DOJ) backgrounds are preparing to deliver a comprehensive analysis of current corporate enforcement priorities, with a special focus on False Claims Act (FCA) investigations and fraud allegations.

Zach Terwilliger and Alexander Canizares, both drawing from their significant experience within the DOJ, will provide strategic counsel to companies facing potential FCA enforcement actions. Their upcoming presentation aims to equip businesses with essential knowledge to navigate the increasingly complex landscape of government investigations.

The session will dissect recent DOJ policy pronouncements related to the False Claims Act, examining landmark cases that exemplify the department’s current enforcement focus. As federal authorities continue to expand their scrutiny across various sectors, understanding these priorities has become crucial for organizations that conduct business with the government.

One notable area of emerging risk highlighted in the presentation will be Diversity, Equity, and Inclusion (DEI) practices. As companies increasingly make public commitments and representations about their DEI initiatives, federal authorities have shown growing interest in verifying the accuracy of these claims, particularly when they impact government contracts or funding.

Tariff compliance represents another critical enforcement focus. With global trade tensions continuing to influence import regulations, the DOJ has intensified its examination of companies’ tariff declarations and classification practices. Misrepresentations in this area can trigger significant FCA investigations, with potential for substantial financial penalties.

Cybersecurity compliance has also emerged as a priority enforcement area for federal authorities. As government contractors handle increasingly sensitive information, their adherence to cybersecurity protocols and accurate reporting of security measures has come under heightened scrutiny. Recent cases demonstrate the DOJ’s willingness to pursue FCA claims against organizations that misrepresent their cybersecurity capabilities or fail to report breaches properly.

Beyond identifying risk areas, the presentation will offer practical guidance for managing internal issues before they escalate into formal whistleblower complaints. Whistleblower-initiated cases continue to drive a significant portion of FCA enforcement actions, making internal compliance programs and issue management strategies essential components of corporate risk mitigation.

The experts will also outline effective strategies for handling qui tam litigation – lawsuits brought by private individuals on behalf of the government alleging fraud – and navigating DOJ investigations. Their insights will be particularly valuable as the department continues to refine its approach to corporate enforcement under the current administration.

This presentation comes at a critical time, as FCA enforcement has seen notable increases in both case volume and settlement amounts over recent years. In fiscal year 2022 alone, the Justice Department recovered over $2.2 billion through False Claims Act cases, highlighting the significant financial exposure companies face when confronting these matters.

Industry observers note that the DOJ has recently emphasized individual accountability alongside corporate liability, creating additional complexities for organizations managing potential FCA issues. The department’s September 2022 policy update reinforced this focus on prosecuting individuals responsible for corporate wrongdoing, while also providing new guidance on how companies can receive cooperation credit during investigations.

For businesses operating in highly regulated industries or those with significant government contracts, understanding these enforcement trends has become an essential aspect of risk management. The False Claims Act, with its potential for treble damages and substantial per-claim penalties, represents one of the government’s most powerful enforcement tools against alleged fraud.

The presentation by Terwilliger and Canizares promises to provide valuable insights from their unique perspective as former DOJ officials who now advise companies navigating these complex challenges. Continuing legal education credit for attending the session is pending approval.