Yes. The "reverse" False Claims Act provision in 31 U.S.C. § 3729
(a)(7) makes it illegal for a defendant to misrepresent the
facts to avoid paying an "obligation" owed the Government. With a few
notable exceptions, most courts have strictly limited (a)(7)’s
applicability to incidents where the obligation concealed, avoided,
or decreased was a current, immediate legal obligation to pay money
owed, such as in a contract, judgment, or acknowledgment of
indebtedness. The Department of Justice has also discouraged pursuit
of cases involving innovative interpretations of this provision and,
thus, most (a)(7) relators must work hard to obtain a recovery.
An example of a violation of the “reverse false claims” provision
occurred where defendants failed to record, in tow boat logs,
illegally discharged pollutants. The defendants’
policy was to record legal discharges, but not illegal ones. Reverse false claims existed because the defendants did not disclose
to the Government their dumping of wastes and chemicals into the
waterways, thus concealing or avoiding their
obligation to pay cleanup costs for Clean Water Act violations.
These cases involved Government contractors supplying jet fuel for
the Air Force whose contracts included standard Clean Water Act and
other environmental compliance clauses.
Another excellent of the application of the reverse False Claims
Act provision was in the cases involving oil companies'
understatement of royalties owed to the Government for oil pumped
from federal lands.
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