Charged Under 31 U.S.C. 3729 What Happens Next

The first thing to understand about a matter under 31 U.S.C. § 3729 is that the provision is civil. A person is sued under it rather than charged, and the case seeks money rather than a prison term. That distinction is not a comfort, because the same conduct is frequently examined at the same time by federal prosecutors under separate criminal statutes, and what happens in the civil case can shape what happens in the criminal one.

What comes next depends almost entirely on which document arrived. A civil investigative demand, an unsealed complaint served by the United States, a complaint served by a relator after the government declined, and a visit from federal agents each put a matter in a different posture and call for a different first move. To discuss a matter under the False Claims Act, call (888) 437-7747 to request a consultation.

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The First Document Tells You Which Track You Are On

A civil investigative demand means an investigation is open and no complaint has been unsealed. It can require documents, written answers, and sworn testimony, and it is compulsory, though its scope and deadline are usually negotiable in practice.

An unsealed complaint in which the United States has intervened means the government investigated and decided to litigate in its own name. A complaint prosecuted by a relator alone means the government declined, which is not a finding that the claims lack merit and does not end the case. Agents appearing at homes or at a workplace signals that a criminal component is active, and that changes the priority order immediately.

The Sequence of a Civil False Claims Act Case

A qui tam complaint is filed under seal and served on the government rather than on the defendant. The government investigates during the seal period, then intervenes, declines, or moves to dismiss. Only after the seal lifts is the defendant served and required to respond.

From there the case follows ordinary federal civil procedure, with two features that matter. First, motions to dismiss carry unusual weight, because the threshold bars and the heightened pleading standard for fraud allegations can resolve a case before discovery. Second, discovery is document heavy and expensive, and everything produced is available to prosecutors if a parallel criminal matter exists. In the Eastern District of Virginia the civil docket moves briskly, so preparation cannot wait for a comfortable schedule.

What to Do in the First Weeks

Preserve records immediately and in writing, including email, claims and billing data, and messaging platforms, and suspend automatic deletion. Identify the systems and custodians the demand actually reaches before anyone starts collecting.

Do not let managers question employees about the subject matter until counsel has set a process, because uncoordinated internal questioning creates witnesses and can waive protections. Tell employees accurately what their position is: they are not required to speak with agents who come to their homes, they may have counsel present, and false statements to federal agents create separate criminal exposure. Then assess whether individual employees need separate counsel, because company interests and individual interests separate quickly in these matters.

Frequently Asked Questions

Does a False Claims Act suit mean criminal charges are coming?

Not necessarily. Many matters resolve civilly with no criminal case at all. What makes the risk real is that the same billing records support both analyses, and prosecutors read the civil file. The signals worth watching are agent interviews, grand jury subpoenas, and a request that the civil case be stayed. If any of those appear, the matter should be handled as a criminal exposure question from that point forward.

How long has the government been investigating?

Usually longer than the defendant realizes. Because a qui tam complaint is filed under seal and the seal is commonly extended, the government may have been working with the relator, subpoenaing records, and interviewing former employees well before anyone at the company learned a case existed. Assume the government starts with an evidentiary head start and plan the response accordingly rather than treating the first notice as the start of the matter.

Can the civil case be paused while a criminal case proceeds?

It can be. Courts have authority to stay civil proceedings where a parallel criminal matter creates a conflict, most often to protect a defendant from having to choose between defending the civil case and asserting the privilege against self incrimination. Whether to seek a stay is a strategic judgment with costs on both sides, and it is one of the earliest decisions counsel makes once both tracks are confirmed.

Should the company do an internal investigation?

Often yes, but how it is commissioned and conducted decides whether the result helps or hurts. An investigation run without attention to privilege produces a report the government can obtain. One run properly gives the company facts it needs before making decisions about disclosure, discipline, or settlement. The decision to open one, and its scope, should be made with counsel before any interviews take place.

What if an employee already spoke to agents?

That is common and it is not the end of anything. What matters next is an accurate account of what was said, whether the employee was warned, and whether the statement was recorded or memorialized. False statements to federal agents create their own exposure, so an employee who is uncertain about what was said should speak with counsel who represents them individually before any further contact with investigators.

Where will the case be heard?

A False Claims Act case arising from federal contracting or federally funded programs in northern Virginia is ordinarily litigated in the United States District Court for the Eastern District of Virginia, with appeals to the United States Court of Appeals for the Fourth Circuit. Venue can be contested in some configurations, and where a case sits affects both the pace of the litigation and the body of law that governs the elements.

How Mr. Sris and the Firm’s Of Counsel Attorneys Handle Matters Opened Under the False Claims Act

The first weeks set the shape of a False Claims Act matter. Preservation, a single point of contact with the government, and a clear picture of whether a criminal component exists are worth more at that stage than any argument about the merits, which will not be made for many months.

Mr. Sris, Owner and Founder of Law Offices Of SRIS, P.C., is a former prosecutor and founded the firm in 1997. He is admitted in Virginia, Maryland, the District of Columbia, New Jersey, and New York. His background at George Mason University in accounting and information systems is applied to complex financial and technology-related cases, which is the category these matters fall into. Mr. Sris and the firm’s Of Counsel attorneys, who contract directly with the firm, work on federal criminal matters together.

The firm represents companies, executives, and employees in False Claims Act and qui tam matters at every stage, from a civil investigative demand through litigation and parallel criminal investigation. To discuss a matter under the False Claims Act, call (888) 437-7747 to request a consultation.

Disclaimers

This page describes what follows when a matter is opened under the False Claims Act at 31 U.S.C. § 3729 in general terms for people trying to understand a federal process. It is not legal advice, and reading it does not create an attorney-client relationship with Law Offices Of SRIS, P.C. Federal statutes and the decisions interpreting them change over time, so confirm anything stated here against the current statutory text with counsel before acting on it.

Every federal matter turns on facts that belong to that matter alone. Case results depend on a variety of factors unique to each case. Results may vary.

Attorney responsible for this advertising: Mr. Sris. Law Offices Of SRIS, P.C. Call (888) 437-7747 to request a consultation; the firm’s intake line is staffed 24/7.

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Being charged is one stage of the case. Our page on false claims act qui tam charges sets out the offence from start to finish.