NOTE: This plain and clear text of this statute cannot be misunderstood. Congress specifically used the mandatory term "shall", not "may" or "can", thirty-five times in the first two sections of this four section law. The legislative history carefully explains exactly what the Congress wanted to happen and even (1) warns about and (2) attempts to prevent certain actions by the Justice Department.

Ref: As amended Pub.L. 99-562, Sect. 3-4, Oct. 27, 1986, 100 Stat.3154, 3157.
Title 31 of the United States Code (USC), Section 3729
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3729. Liability for certain acts.

    (a) 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 $5,000.00 and not more than $10,000.00, plus 3 times the amount of damages which the Government sustains because of the act of that person, except 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 the information known to such a person about the violations within 30 days after 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 violations;

    the court may assess not less than 2 times the amount of damages which the Government sustains because of the act of that person. A person violating this subsection

    (#1) shall also be liable to the United States Government for the cost of a civil action brought to recover any such penalty or damages.

    (b) Knowing and knowingly defined. -

    For the purposes of this section, the terms "knowing"& "knowingly" mean that a person, with respect to information -
    (1)

    has actual knowledge of the information;
    (2)

    acts in deliberate ignorance of the truth or falsity of the information; or
    (3)

    acts in reckless disregard of the truth or falsity of the information, and no proof of specific intent to defraud is required.

    (c). Claim defined. - For the purposes of this section, "claim" includes any request or demand, whether under a contract or otherwise, for the money or property which is made to a contractor, guarantee, or other recipient if the United States Government provides any portion of the money or property which is requested or demanded, or if the Government will reimburse such contractor, grantee, or other recipient for any portion of the money or property which is requested or demanded.

    (d). Exemption from disclosure. - All information furnished pursuant to subparagraph (A) thru (C) of subsection (a)

    (#2) shall be exempt from disclosure under section 552 of title 5.

    (e). Exclusion. - This section does not apply to claims, records, or statements made under the Internal Revenue Code of 1954.

(As amended Pub. L. 99-582, Section 2,0ct.27,1986.100 Stat. 3153.)

Title 31 of the Codified Federal Regulations (CFR), Section 3730

3730. Civil actions for false claims.

(a) Responsibilities of the attorney general. - The Attorney General diligently

(#3) shall investigate a violation under 3729. If the Attorney General finds that a person has violated or is violating section 3729, the Attorney General may bring acivil action under this section against the person.

(b) Actions by private persons. -

    (1)

    A person may bring a civil action for a violation of section 3729 for the person and for the United States Government. The action

    (#4) shall be brought in the name of the Government. The action may be dismissed only if the court and the Attorney General give written consent to the dismissal and their reason for consenting.
    (2)

    A copy of the complaint and written disclosure of substantially all material evidence and information the person possesses

    (#5) shall be served on the Government pursuant to Rule 4(d)(4) of the Federal Rules of Civil Procedure. The complaint

    (#6) shall be filed in camera,

    (#7) shall remain under seal for at least 60 days, and

    (#8) shall not beserved on the defendant until the court so orders. The Governmentmay elect to intervene and proceed with the action within 60 days after it receives both the complaint and the material evidenceand information.
    (3)

    The Government may, for good cause shown, move the court for extensions of the time during which the complaint remains under seal under paragraph (2). Any such motions may be supported by affidavits or other submissions in camera. The defendants

    (#9) shall not be required to respond to any complaint filed under this section until 20 days after the complaint is unsealed and served upon the defendant pursuant to Rule 4 of the Federal Rules of Civil Procedure.
    (4)

    Before the expiration of the 60-day period or any extensions obtained under paragraph (3), the Government

    (#10) shall -

        (A) proceed with the action, in which case the action

        (#11) shall be conducted by the Government; or
        (B) notify the court that it declines to take over the action, in which case the person bringing the action

        (#12) shall have the right to conduct the action.

    (5) When a person brings an action under this subsection, no person other than the Government may intervene or bring a related action based on the facts underlying the pending action.

(c) Rights of the parties to the Qui Tam actions. -

    (1) If the Government proceeds with the action, it

    (#13) shall have the primary responsibility for prosecuting the action, and

    (#14) shall not be bound by an act of the person bringing the action. Such person

    (#15) shall have the right to continue as a party to the action, subject to the limitations set forth in paragraph (2).

    (2) Limitations:

      (A) The Government

      (#16) shall dismiss the action notwithstanding the objections of the person initiating the action if the person has been notified by the Government of the filing of the motion and the court has provided the person with an opportunity for a hearing on the motion.
      (B) The Government may settle the action with the defendant notwithstanding the objections of the person initiating the action if the court determines, after a hearing, that the proposed settlement is fair, adequate, and reasonable under all the circumstances. Upon a showing of good cause, such hearing may be held in camera.
      (C) Upon a showing by the Government that unrestricted participation during the course of the litigation by the person initiating theaction would interfere with or unduly delay the Government's prosecution of the case, or would be reptitous, irrelevant, or for purposesof harassment, the court may, in its discretion, impose limitations on the person's participation, such as -


        (i) limiting the number of witnesses the person may call;
        (ii) limiting the length of the testimony of such witnesses;
        (iii) limiting the person's cross-examination of witnesses; or
        (v) otherwise limiting the participation by the person in the litigation.

      (D) Upon a showing by the defendant that unrestricted participation during the course of the litigation by the person initiating the action would be for purposes of harassment or would cause the defendant undue burden or unnecessary expense, the court may limit the participation by the person in the litigation.

    (3) If the Government elects not to proceed with the action, the person who initiated the action

    (#17) shall have the right to conduct the action. If the Government so request, it

    (#18) shall be served with copies of all pleadings filed in the action and

    (#19) shall be supplied with copies of all depostion transcripts (at the Government'sexpense). When a person proceeds with the action, the court, without limiting the status and rights of the person initiating the action, may nevertheless permit the Government to intervene at a later date upon a showing of good cause.

    (4) Whether or not the Government proceeds with the action, upon a showing by the Government that certain actions of discovery by the person initiating the action would interfere with the Government's investigation or prosecution of a criminal or civil matter arising out of the same facts, the court may extend the 60-day period upon a further showing in camera that the Government has pursued the criminal or civil investigation or proceedings with reasonable diligence and any proposed discovery in the civil action will interfere with the ongoing criminal or civil investigation orproceedings.

    (5) Notwithstanding subsection (b), the Government may elect to pursue its claim through any alternate remedy available to the Government, including any administrative proceeding to determinea civil money penalty. If any such alternate remedy is pursued in another proceeding, the person initiating the action

    (#20) shall have the same rights in such proceeding as such person would have had if the action had continued under this section. Any finding of fact or conclusion of law made in such other proceeding that has become final

    (#21) shall be conclusive on all parties to an action under this section. For purposes of the preceding sentences, a finding or conclusion is final if it has been finally determined on appeal to the appropriate court of the United States, if all time for filing such an appeal with respect to the finding or conclusion has expired, or if the finding or conclusion is not subject to judicial review.

(d) Award to Qui Tam plaintiff. -

    (1) If the Government proceeds with an action brought by a person under subsection (b), such person

    (#22) shall , subject to the second sentence of this paragraph, receive at least 15 percent but not more than 25 percent of the proceeds of the action or settlement of the claim, depending upon the extent to which the person substantially contributed to the prosecution of the action. Where the action is one which the court finds to be based primarily on disclosures of specific information (other than information provided by the person bringing the action) relating to allegations or transactions in a criminal, civil, or administrative hearing, in a congressional, administrative, or Government Accounting Office report, hearing, auditor investigation, or from the news media, the courts may award such sums as it considers appropriate, but in no case more than 10 percent of the proceeds, taking into account the significance of the information and the role of the person bringing the action in advancing the case to litigation. Any payment to a person under the first or second sentence of this paragraph

    (#23) shall be made from the proceeds. Any such person

    (#24) shall also receive an amount for reasonable expenses which the court finds to have been necessarily incurred, plus reasonable attorneys fees and costs. All such expenses, fees, and cost

    (#25) shall be awarded against the defendant.

    (2) If the Government does not proceed with an action under this section, the person bringing the action or settling the claim

    (#26) shall receive an amount which the court decides is reasonable for collecting the civil penalities and damages. The amount

    (#27) shall not be less than 25 percent and not more than 30 percent of the proceeds of the action or settlement and

    (#28) shall be paid out ofsuch proceeds. Such person

    (#29) shall also receive an amount for reasonable expenses which the court finds to have been necessarily incurred, plus reasonable attorneys' fees and cost. All such expenses, fees,and costs

    (#30) shall be awarded against the defendant.

    (3) If the Government does not proceed with the action and the person bringing the action conducts the action, the court may award to the defendant its reasonable attorneys' fees and expenses if the defendant prevails in the action and the court finds that the claim of the person bringing the action was clearly frivolous, clearly vexatious, or brought primarily for purposes of harassment.

(e) Certain actions barred. -

    (1) No court

    (#31) shall have jurisdiction over an action brought by a former or present member of the armed forces under subsection (b) of this section against a member of the armed forces arising out of such person's service in the armed forces.

    (2) - - - - - - - - - - -

      (A) No court

      (#32) shall have jurisdiction over an action brought under subsection (b) against a Member of Congress, a member of the judiciary, or a senior executive branch official if the action is based on evidence or information known to the Government when the action was brought.

      (B) For the purpose of this paragraph "senior executive branchofficial" means any officer or employee listed in section 201(f) of the Ethics in Government Act of 1978 (5 U.S.C.App.).

      (3) In no event may a person bring an action under subsection (b) which is based upon allegations or transactions which are the subject of a civil suit or an administrative civil money penalty proceeding in which the Government is already a party.

      (4) - - - - - - - - - -

        (A) No court

        (#33) shall have jurisdiction over an action under this section based upon the public disclosure of allegations or transactions in a criminal, civil, or administrative hearing, in a congressional, administrative, or Government Accounting Office report, hearing, audit, or investigation, or from the news media, unless the action is brought by the Attorney General or the person bringing the action is an original source of the information.

        (B) For the purposes of this paragraph, "original source" means an individual who has direct and independent knowledge of the information on which the allegations are based and has voluntarily provided the information to the Government before filing an action under this section which is based on the information.

(f) Government not liable for certain expenses. - The Government is not liable for expenses which a person incurs in bringing an action under this section.

(g) Fees and expenses to prevailing defendant. - In civil actions brought under this section by the United States, the provisions of section 2412(d) of title 28

(#34) shall apply.

(h) Any employee who is discharged, demoted, suspended, threatened, harassed or in any other manner discriminated against in the terms and conditions of employment by his or her employer because of lawful acts done by the employee on behalf of the employee or others in furtherance of an action under this section, including investigation for, initiation of, testimony for, or assistance in an action filed or to be filed under this section,

(#35) shall been titled to all relief necessary to make the employee whole. Such relief

(#36) shall include reinstatement with the same seniority status such employee would have had but for the discrimination, 2 times the amount of backpay, interest on the backpay, and compensation for any special damages sustained as a result of the discrimination, including litigation cost and reasonable attorney's fees. An employee may bring an action in the appropriate district court of the United States for the relief provided in this subsection.

As amended Pub.L. 99-562, Sect. 3-4, Oct. 27, 1986, 100 Stat.3154, 3157.