You may be contacted by federal agents or receive a DOJ civil investigative demand claiming that you may have violated the False Claims Act. The reality is that if the government contacts you in any way, it is building a case against you. This presumption is safe.  If you are a federal government contractor, in the healthcare industry or a CEO of a corporation facing this challenge, call of California False Claims Act Defense Lawyers at Watson & Associates, LLC

Watson & Associates LLC defends companies, executives, government contractors, and healthcare providers in federal False Claims Act investigations in California. We do not handle California’s state-level False Claims Act — if your matter is a purely state claim, we’ll tell you that on the first call and point you toward counsel who handles it.

California meeting locations (by appointment): We do NOT accept mail or service at these addresses.

San Diego — 402 West Broadway, Suite #400, San Diego, CA 92101

Los Angeles — 1800 Vine St, Los Angeles, CA 90028

Call 1.866.601.5518 to speak directly with Carolyn Oliver or Theodore Watson. Free, confidential consultation, 24/7.

What Is the Federal False Claims Act, and How Is It Different From California’s State Version?

The federal False Claims Act (31 U.S.C. §§ 3729–3733) makes it illegal to knowingly submit a false or fraudulent claim for payment to the federal government. California also has its own state False Claims Act, which applies to fraud against state or local government agencies and is enforced separately by the California Attorney General or local district attorneys. The False Claims Act primarily targets fraudulent substandard contractor performance and materials, submitting medical bills and invoices for treatment not given, and billing and false submissions made to the government.  A sealed case may be filed on behalf of the government against individuals or entities alleged to have defrauded federal government programs. These are different statutes, different enforcement bodies, and often different counsel.

Watson & Associates LLC’s practice is limited to federal matters — if DOJ, an OIG, or a federal agency isn’t involved, this isn’t the right firm for a purely state-level claim, and we’ll say so directly rather than take the engagement anyway.

“Knowingly” under the federal statute covers actual knowledge, deliberate ignorance, and reckless disregard. Reckless disregard is where most defensible cases sit — a billing error or a misread regulation can look like reckless disregard to an investigator who has never run your business, and that gap is frequently where a case is won.

The same underlying conduct can also be charged criminally under 18 U.S.C. § 287, which carries up to five years in federal prison per count. A civil FCA matter and a criminal referral are not mutually exclusive, and they need to be evaluated together from the first call, not handled by separate, uncoordinated teams.

31 U.S.C. 3729. False claims

(a) Liability for Certain Acts.-Any person who-

(1) knowingly presents, or causes to be presented, to an officer or employee of the United States Government or a member of the Armed Forces of the United States a false or fraudulent claim for payment or approval;

(2) knowingly makes, uses, or causes to be made or used, a false record or statement to get a false or fraudulent claim paid or approved by the Government;

(3) conspires to defraud the Government by getting a false or fraudulent claim allowed or paid;

(4) has possession, custody, or control of property or money used, or to be used, by the Government and, intending to defraud the Government or willfully to conceal the property, delivers, or causes to be delivered, less property than the amount for which the person receives a certificate or receipt;

(5) authorized to make or deliver a document certifying receipt of property used, or to be used, by the Government and, intending to defraud the Government, makes or delivers the receipt without completely knowing that the information on the receipt is true;

(6) knowingly buys, or receives as a pledge of an obligation or debt, public property from an officer or employee of the Government, or a member of the Armed Forces, who lawfully may not sell or pledge the property; or

(7) knowingly makes, uses, or causes to be made or used, a false record or statement to conceal, avoid, or decrease an obligation to pay or transmit money or property to the Government,

is liable to the United States Government for a civil penalty of not less than $5,000 and not more than $10,000, plus 3 times the amount of damages which the Government sustains because of the act of that person, except that if the court finds that-

(A) the person committing the violation of this subsection furnished officials of the United States responsible for investigating false claims violations with all information known to such person about the violation within 30 days after the date on which the defendant first obtained the information;

(B) such person fully cooperated with any Government investigation of such violation; and

(C) at the time such person furnished the United States with the information about the violation, no criminal prosecution, civil action, or administrative action had commenced under this title with respect to such violation, and the person did not have actual knowledge of the existence of an investigation into such violation;

How Does the FCA Actually Work?

In a traditional case, the prosecution, through a whistleblower or some other source, gets wind that you company has violated a particular procurement statute or healthcare regulation. Once that allegation, and evidence enough to go forward, is established, then the government will monetize or criminalize the violation by invoking the False Claims Act.

Along with the allegations come other related claims such as conspiracy, wire fraud, and other counts that the federal prosecution may choose to bring against you.

Federal False Claims Act Elements

For the federal government to  establish a False Claims Act violation, it must show the following:

1. A false claim.
2. The false claim was made with the requisite scienter (or knowledge that it was false).
3. The false claim is material to payment.
4. The false claim caused the government to pay money.

These four elements are discussed in further detail below.

I Just Received a Civil Investigative Demand (CID), Subpoena, or Target Letter. What Do I Do Right Now?

1. Don’t speak to agents or investigators without counsel present. You are not required to submit to a civil investigative demand interview, and declining is not evidence of guilt.
2. Don’t alter, delete, or reorganize any records or communications related to the matter — including routine auto-deletion. Once a duty to preserve attaches, deletion that happens automatically still looks like destruction of evidence.
3. Don’t conduct your own internal investigation before talking to counsel. Without privilege protection built in from the start, an internal review can create the evidence the government later uses against you.
4. Call counsel before responding to anything in writing — including the document itself. The response window is usually not as short as it looks, and it’s frequently negotiable through counsel.

Which California Federal District Is Handling My Matter, and Why Does It Matter?

California has four federal districts, each with its own U.S. Attorney’s Office, its own enforcement priorities, and its own track record on FCA matters:

• Central District (Los Angeles) — the largest federal district in the country, with heavy healthcare and aerospace/defense contract fraud enforcement.
• Southern District (San Diego) — a major hub for defense contractors and healthcare providers, with historically aggressive FCA enforcement.
• Northern District (San Francisco, San Jose, Oakland) — a high volume of technology and federal grant fraud cases.
• Eastern District (Sacramento, Fresno) — enforcement concentrated in agricultural and healthcare program fraud.

This matters practically because how a case gets investigated, evaluated, and — critically — declined or settled varies by office. An attorney who has actually worked inside the specific district investigating you understands that office’s internal standards for declining a case, not just the statute on paper. Our team has handled matters in all four.

What Are Penalties Under the Federal False Claims Act?

Civil False Claims Act penalties currently range from $14,308 to $28,619 per false claim, in addition to treble (three times) the government’s actual damages. Because “per claim” can mean per invoice or per line item, the total penalty can significantly exceed what the government actually lost — a modest damages figure multiplied across many claims produces a number with little relationship to the underlying harm.

Criminal convictions under 18 U.S.C. § 287 carry up to five years in federal prison per count, with fines up to $250,000 for individuals or $500,000 for organizations.

Beyond the direct financial exposure, contractors and healthcare providers also face suspension, debarment from federal contracting, and loss of professional licensure — consequences that can outlast and outweigh the underlying case itself.

What this doesn’t mean: these are statutory maximums, not a forecast of your outcome. Most FCA matters resolve well short of the ceiling, and a meaningful share are declined before any complaint becomes public. No responsible attorney will tell you in advance how your specific matter will end — and any firm that does is telling you something about its judgment, not about your case.

What Do CEOs and Executives Actually Want to Know?

Will this False Claims Act case stay out of the press?

Qui tam lawsuits are filed under seal specifically so the matter stays confidential while the government decides whether to intervene. Moving quickly and correctly during that sealed window is often what keeps a matter from ever becoming public.

Can my company keep operating and keep its government contracts while this False Claims Act investigation is pending?

In most cases, yes. An investigation by itself does not trigger suspension or debarment — those are separate, later administrative decisions, and how the company responds during the investigation often determines whether it gets there at all.

Am I personally at risk, or just the company?

Often both, and sometimes primarily the individual. Executives and owners can face exposure separate from the company’s once the government’s theory turns to intent — which is why individual and corporate counsel should be evaluated separately, early.

What does this cost, and how long does it take?

It depends heavily on whether the matter resolves before or after the government decides to intervene — realistically, months to a few years. A direct cost and timeline conversation should happen on the first call, not after you’ve already committed to a strategy.

Government Contractor Fraud and Federal Healthcare Fraud in California

California’s concentration of aerospace, defense, and technology contractors draws sustained federal scrutiny. On the contractor side, we defend cost mischarging, bid rigging, SBA program eligibility issues (8(a), HUBZone, SDVOSB), and Buy American Act or Trade Agreements Act allegations. This page covers the FCA and criminal exposure side of that work; for contract formation, compliance, and bid protests.

California’s healthcare industry is a comparably significant federal enforcement target. We defend hospitals, clinics, physician groups, and dental practices in Medicare and Medicaid billing investigations, Anti-Kickback Statute allegations (42 U.S.C. § 1320a-7b), and Stark Law matters (42 U.S.C. § 1395nn) — once a federal agency is actually involved. We don’t take on internal billing disputes with no federal nexus.

Not every matter starts as an FCA case. Grand jury subpoenas, Inspector General investigations, and parallel civil-criminal inquiries frequently begin under a different statute before FCA exposure becomes clear. The letterhead on the first document matters less than getting experienced federal counsel involved before you respond to anything.

Federal False Claims Act Healthcare Fraud Defense in California

California’s healthcare industry is a primary federal enforcement target. As a California healthcare fraud defense lawyer team, we defend hospitals, clinics, physicians, and dental practices in Medicare and Medicaid billing investigations, Anti-Kickback Statute allegations (42 U.S.C. § 1320a-7b), and Stark Law violations (42 U.S.C. § 1395nn) — but only once a federal agency is actually involved, not for internal investigations or billing disputes with no federal nexus.

What Should You Actually Look For in a California False Claims Act Defense Attorney?

Four things worth checking before you retain anyone:

• A practice limited to federal fraud defense, not a generalist firm handling whatever comes in the door.
• Former DOJ or U.S. Attorney’s Office experience on the team — ideally inside the specific California district your matter is in, not federal experience in general.
• Combined civil and criminal capability under one roof. If a firm’s answer to the criminal exposure question is “we’d refer that out,” you now have two firms, two theories, and a coordination problem you’ll pay for twice.
• Direct access to the attorney actually handling your matter, not an intake team that hands you off once you’ve signed.

Led by a Former Assistant U.S. Attorney in California’s Major Frauds Section

Carolyn L. Oliver brings more than 40 years of legal experience, including service as an Assistant United States Attorney in the Major Frauds Section for the Southern District of California. That’s not general federal experience — it’s direct knowledge of how that specific office evaluates and builds the cases now reaching California contractors, healthcare providers, and executives.

“Having prosecuted major fraud cases for the DOJ in California, I know exactly how Assistant U.S. Attorneys build their cases, where their weaknesses lie, and what arguments are most effective in persuading them to decline charges or agree to a favorable settlement. That’s the perspective we bring to every client we defend.”* — Carolyn L. Oliver

Our national federal experience applies directly to California matters, because federal cases follow the same DOJ policy and federal procedure regardless of state. Combined, our core team has more than 125 years in federal practice as prosecutors, military counsel, and federal officials. We are not a large firm — you work directly with the attorney handling your case, not an associate you’re handed off to after signing.

The Team

Carolyn L. Oliver, Of. Counsel (California Lead – Former DOJ Major Frauds Section Prosecutor)

Carolyn L. Oliver brings over 40 years of distinguished legal experience, including her tenure as an Assistant United States Attorney in the Major Frauds Section of the U.S. Attorney’s Office for the Southern District of California. This is not just experience—it is insider knowledge of the very office that investigates and prosecutes the most significant False Claims Act cases in California.

Her background as a federal prosecutor in California provides our clients with an unparalleled advantage. She has been on the other side of the table and knows the government’s playbook inside and out. This is the expertise you need when facing a federal investigation in California. Read more…

 

Speak to National Practice Leader, Retired U.S. Air Force Veteran, Theodore Watson (Over 23 Years of Federal Practice – Admitted to the Supreme Court of the United States.

For a FREE Initial Consultation, call 1.866.601.6618 and speak to Mr. Watson. When you’re under federal investigation, time is not on your side.

If You’ve Received a CID, Subpoena, or Target Letter

1. Don’t speak to agents or investigators without counsel present.
2. Don’t alter, delete, or reorganize any records or communications.
3. Don’t conduct your own internal investigation — without privilege protection, it can create evidence the government uses against you.
4. Call experienced California False Claims Act lawyers before responding to anything in writing.

Frequently Asked Questions

What’s the difference between the federal and California False Claims Acts?

The federal FCA applies to fraud against the federal government; California’s state FCA applies to fraud against state or local government agencies. We handle federal matters only — for a purely state-level claim, you need different counsel, and we’ll tell you that directly.

Can I be criminally prosecuted under the False Claims Act?

Yes. While the FCA itself is a civil statute, the same underlying conduct can be prosecuted criminally under 18 U.S.C. § 287. That overlap is exactly why a defense team needs both civil and criminal capability rather than treating them as separate matters.

How long does a federal FCA investigation take in California?

Anywhere from several months to several years, depending on case complexity, document volume, and whether the government ultimately intervenes.

Do you take every case that calls?

No. We evaluate each matter before agreeing to represent you, and we’ll tell you directly if we don’t believe we’re the right fit for yours.

Experienced California False Claims Act attorney and criminal defense lawyer in CA

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Talk to a California False Claims Act Defense Attorney

Watson & Associates LLC represents companies, executives, government contractors, and healthcare providers in federal False Claims Act matters throughout California — Los Angeles, San Diego, San Francisco, San Jose, Sacramento, Fresno, Oakland, and the surrounding metro areas. Our practice is federal, and we serve clients nationwide.

📞 1.866.601.5518 — answered 24/7

California meeting locations (by appointment):

San Diego — 402 West Broadway, Suite #400, San Diego, CA 92101

Los Angeles — 1800 Vine St, Los Angeles, CA 90028

Firm offices: Denver, CO · Washington, DC

Attorney advertising. This page is general information and does not create an attorney-client relationship or constitute legal advice. Prior results do not guarantee or predict a similar outcome in any other matter. Watson & Associates LLC’s practice is generally limited to federal law; the firm associates local counsel where required.

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