Tips for Responding to Civil Investigative Demand False Claims Act CID Requests 31 USC 3733
Former Federal Government Attorneys – Experienced in False Claims Act (FCA) (CID) Civil In
vestigative Demand False Claims Act Defense
The Civil investigative demand False Claims Act (FCA) – 31 USC 3733 is a common federal statute used by various federal law enforcement agencies to compel individuals, healthcare industry members, and federal government contractors to produce documents or testify in civil and criminal investigations.
In civil investigations, the U.S. Attorney’s Office can send civil investigative demands that force the production of documents, written responses, and even testimony. This is not a good position to be in. The stress of learning how to respond to civil investigative demands can be overbearing and confusing. The reality is that you do not want to make mistakes when responding to False Claims Act government CIDs.
While mandatory, responding to a False Claims Act civil investigative demand can be a slippery slope. When you receive a CID request from the DOJ or OIG, you should have all of the information you need to respond adequately and completely. Whether you are in health care or government contracting, hiring experienced defense attorneys is essential to your success.
At Watson & Associates, LLC, with law offices in Washington, DC and in Colorado, we offer experienced former government lawyers with experience in the federal False Claims Act (FCA) and government investigations.
What is a False Claim?
A false claim is a demand for money or property that is based on a material falsehood or a fraudulent premise. A false claim could result when the medical bill submitted to Medicare by the biller and the submitted seeks payment for procedures the doctor did not actually perform; when government contract goods or services do not conform to the representations made by the contractor; when the competitively awarded contract was procured through bid-rigging or fraud; or when the SBA loan or grant application contains which intentional false statements.
31 U.S. Code § 3733 – Civil investigative demands (statutory language)
When it comes FCA investigations, we help government contractors and health care clients across the country to defend against civil and criminal investigations or litigation defense.
- Our goal is to get investigations to end with a favorable result, and
- Push for charges to be dropped or negotiate the most favorable outcome.
What You Need to Know about Your (or Your Company’s) Civil Investigative Demand False Claims Act Response Under 31 USC 3733
Knowing how to respond to a 31 USC 3733 False Claims Act civil investigative demand means knowing the investigative process, your constitutional rights not to incriminate yourself, and any legal grounds to challenge the CID. Your response and cooperation also mean doing so while still protecting your company’s confidential information.
Critical Information About Civil Investigative Demand False Claims Act Requests
Federal Prosecutors Office Can Issue CIDs During Government-Initiated Investigations and In Response to False Claims Act Qui Tam Lawsuits
False Claims Act government investigations can come to fruition from a self-initiated federal investigation or in response to the filing a whistleblower Qui Tam lawsuit.
- The U.S. Attorney’s Office can issue CIDs in both situations.
- Remember that receiving an FCA CID will not always prompt you to the government’s intent.
In other words, you may not be currently a target of the. Investigation. Yet, depending on the information provided to the U.S. Attorney’s office, you can quickly become a target. This is one main reason you would want an experienced 31 USC 3733 False Claims Act CID defense attorney on your legal team.
Getting a CID Issued Means That You are Not Currently In Litigation
Responding to a False Claims Act civil investigative demand can be positive because it means that the government has not reached a conclusion about its findings.
This means that you may be able to get the investigation or any contemplated charges thrown out, or you may have a shot at getting a favorable result after the investigation.
- Federal Attorneys issue government CIDs before litigation or Intervening in a Qui Tam Lawsuit
- Receiving a CID does not necessarily mean that you have committed a crime.
False Claims Act Civil Investigative Demand False Claims Act Requests Give the Government the Ability to Reach Your Sensitive Information
You should know that the government’s use of 31 USC 3733 CID FCA investigation requests means that they have the authority to reach your sensitive personal and corporate information.
The Federal government’s reach can include corporate and personal bank accounts, emails and cell phone records, invoices and contracts between third parties and more.
However, you have constitutional rights and certain protections. Working with federal lawyers who understand the CID process in a federal False Claims Act case is essential.
- The federal government does not have a right to compel you to incriminate yourself
- Communications between your CID compliance attorneys are generally privileged communications.
What Happens If You Fail to Respond to a Civil Investigative Demand False Claims Act Request Adequately?
When it comes to responding to the civil investigative demand. False Claims Act request, you must cooperate. However, you cannot spoon-feed the U.S. Attorney’s office what you think you want them to know. Instead, you must comply with the CID or subpoena (criminal cases).
Failing to respond to a CID adequately can have serious consequences. You can find yourself facing mounting legal fees for forcing the OIG or DOJ from seeking enforcement help from the Court; You can face charges for interfering with a federal investigation and many more sanctions.
Withholding information or lying to federal investigators can result in additional charges, such as lying to a government official ( a felony).
The above are all reasons why having a federal lawyer civil investigative demand attorney is essential to a more favorable outcome.
How to Respond to a CID
Individuals, government contractors, and healthcare professionals receiving a CID should immediately bring in experienced CID False Claims Act defense counsel. The first steps in responding to a CID often include the following:
- Meet with your defense attorney to develop a response plan
- Identify relevant data sources and document custodians (this may require the expensive task of hiring forensic technician services)
- Implement a legal CID hold to preserve potentially relevant documents
- Have your attorney negotiate with the DOJ or OIG, or FTC about the scope and timing of any response
- Conduct internal investigations and start correcting any issues
CID Response Tips
- When you respond to a civil investigative demand False Claims Act request, be aware that the documents and information provided to the government are usually kept confidential and used only for federal investigations. However, 31 USC 3733 allows the federal government to share information produced in response to a CID with a qui tam relator if the government “determine[s] it is necessary.”
- When you receive a civil demand, government contractors or health care companies often will have no idea why the demand was sent to you. The False Claims Act is usually the default statute when the government decides that you have violated some underlying statute. Examples can be the Buy American Act (BAA), the Trade Agreements Act (TAA), FAR regulations or some other substantive rule. When you retain legal counsel, some Civil Investigative Demand attorneys can digest the information, speak to the U.S. attorneys and sometimes get an idea of the reason for the CID or subpoena.
- Imt destroy documents or evidence within the purview of the CID. Even if destruction is considered accidental, without a CID hold, your company could face allegations of spoliation and potentially even obstruction of justice.
If you have any questions about the civil investigative demand False Claims Act process, please contact a CID compliance attorney at Watson & Associates, LLC. Call us immediately at 1.866.601.5518 and speak to lead attorney Theodore Watson.