18 U.S. Code § 287 – Federal False, Fictitious, or Fraudulent Claims

18 U.S. Code § 287 is a key federal statute the Department of Justice uses to prosecute individuals, healthcare providers, defense contractors, and businesses that knowingly submit false or fraudulent claims for government funds.

This criminal statute enforces integrity across federally funded programs and targets fraudulent billing schemes, inflated reimbursement demands, and deceptive government contract claims.

A conviction under 18 U.S.C. § 287 carries severe legal penalties, including up to five years in federal prison per count, substantial financial fines, and mandatory exclusion from federal program participation.

Legal Definition (Statutory Text of Section 287)

“Whoever makes or presents to any person or officer in the civil, military, or naval service of the United States, or to any department or agency thereof, any claim upon or against the United States, or any department or agency thereof, knowing such claim to be false, fictitious, or fraudulent, shall be imprisoned not more than five years and shall be subject to a fine under this title.”

Key Statutory Definitions

Claim Upon or Against the United States: Any demand for money, property, or services directed to a federal department, agency, officer, or federally funded entity (such as Medicare, Medicaid, or a government contractor) with the intent to receive payment or reimbursement.
Knowing (Scienter): Acting with actual knowledge that a claim is false, or acting with deliberate ignorance or reckless disregard of the truth or falsity of the information. Simple negligence or an innocent bookkeeping error does not satisfy this threshold.
False, Fictitious, or Fraudulent: Refers to claims containing intentional misrepresentations of material fact, including billing for services never rendered, double billing, overcharging, or using incorrect billing codes to inflate reimbursement rates.

What Must Be Proven to Convict

To secure a conviction under 18 U.S.C. § 287, federal prosecutors must establish three core elements beyond a reasonable doubt:

Presentation of a Claim: The defendant presented, or caused to be presented, a claim for money, property, or services to an officer, employee, department, or agency of the United States.
Falsity of the Claim: The claim presented was false, fictitious, or fraudulent in a material way.
Knowledge and Intent: The defendant acted knowingly, aware that the claim was untrue or fraudulent at the time it was submitted, rather than acting through honest mistake or misunderstanding.

Penalties for 18 U.S.C. § 287 Convictions

If you are convicted of violating 18 U.S.C. § 287, you face severe statutory criminal punishments, substantial financial liabilities, and long-term professional collateral sanctions.

Federal Imprisonment: Up to 5 years in federal prison per count.
Statutory Criminal Fines: Up to $250,000 for individuals or up to $500,000 for corporations and business entities per offense. Alternatively, under 18 U.S.C. § 3571(d), fines may be increased up to twice the gross pecuniary gain derived from the offense or twice the gross loss suffered by the government.
Impact of Federal Sentencing Guidelines: Sentences are calculated heavily on the "intended loss amount". Even if the government flags a suspicious claim and pays zero dollars, the advisory sentencing range is based on the full dollar value of the attempted fraud. However, the judge cannot exceed the congressionally mandated maximum of 5 years per count.
Mandatory Restitution & Asset Forfeiture: Required repayment of all money obtained through false claims, alongside potential forfeiture of assets connected to or derived from the fraud.
Collateral and Administrative Consequences: Mandatory exclusion from participating in Medicare, Medicaid, and other federal healthcare programs; suspension or permanent debarment from federal government contracting; loss of professional licenses; and parallel civil exposure under the Civil False Claims Act (31 U.S.C. § 3729) involving treble (triple) damages plus per-claim statutory penalties.

Defense Strategies Against 18 U.S.C. § 287 Charges

Establishing a robust defense strategy early is essential to dismantling the prosecution's case, protecting your constitutional rights, and preventing life-altering federal penalties.

Good Faith Reliance / Lack of Intent: Demonstrating that the incorrect claim resulted from an honest misunderstanding of complex government billing regulations, a good-faith contract interpretation, or a clerical error rather than fraudulent intent.
Lack of Knowledge: Establishing that the defendant was unaware that lower-level employees or third-party billing vendors submitted inaccurate information to the government.
Contractual or Administrative Dispute: Proving that the underlying issue stems from a legitimate, ongoing disagreement over contract terms or service fulfillment rather than a criminal effort to deceive.
Constitutional and Procedural Challenges: Moving to suppress evidence gathered through illegal searches, unlawful seizures, or procedural violations, which can severely weaken the government's case before trial.

Examples of 18 U.S.C. § 287 Violations

Healthcare Billing Fraud: A medical clinic owner routinely submits claims to Medicare for complex diagnostic procedures that were never performed on patients.
Defense Contractor Overcharging: A military supplier intentionally inflates the hours worked and materials used on a federal defense contract to claim unearned government reimbursements.
Grant and Subsidy Fraud: A business owner submits falsified payroll documents and altered financial records to receive federal grant funds or emergency relief payments.

Related Statutes Under Chapter 15 (Claims and Services Generally)

Understanding related federal fraud statutes is critical because federal prosecutors routinely join multiple criminal charges in a single indictment to maximize potential penalties and leverage in plea negotiations.

18 U.S.C. § 1001 – Statements or Entries Generally: Criminalizes making materially false statements or concealing facts in any matter within the jurisdiction of the executive, legislative, or judicial branch of the federal government.
18 U.S.C. § 1341 – Mail Fraud: Penalizes using the U.S. Postal Service or private commercial interstate carriers to execute any scheme or artifice to defraud or obtain money under false pretenses.
18 U.S.C. § 1343 – Wire Fraud: Prohibits transmitting interstate electronic communications, wire transfers, emails, or television signals to execute a fraudulent scheme.
18 U.S.C. § 1347 – Health Care Fraud: Criminalizes knowingly executing a scheme to defraud any healthcare benefit program or to obtain money owned by a public or private health plan.
31 U.S.C. § 3729 – Civil False Claims Act: Imposes severe civil financial penalties and triple damages against individuals and companies that knowingly present false claims to the federal government.

Frequently Asked Questions (FAQs)

What is the difference between criminal false claims (18 U.S.C. § 287) and the Civil False Claims Act? Section 287 is a federal criminal statute prosecuted by the Department of Justice and can carry prison time and criminal fines, whereas the Civil False Claims Act (31 U.S.C. § 3729) involves civil lawsuits—often brought by whistleblowers—that can result in monetary damages and civil penalties.

Can an accidental billing mistake result in a conviction under 18 U.S.C. § 287? No. Prosecutors must prove beyond a reasonable doubt that you acted "knowingly." Inadvertent errors, simple negligence, or good-faith misunderstandings of regulations do not meet the legal requirement for criminal intent.

How does the federal government calculate loss amount for sentencing in 18 U.S.C. § 287 cases? Federal Sentencing Guidelines calculate offense levels based on the "intended loss"—the total dollar amount claimed—even if the government discovered the fraud and paid out nothing.

Does 18 U.S.C. § 287 apply to government contractors and healthcare providers? Yes. Anyone who submits a claim for payment to federal programs—including Medicare, Medicaid, defense procurement contracts, and government grants—is subject to criminal prosecution under this statute.

What are the maximum penalties for violating 18 U.S.C. § 287? The statutory maximum penalty is up to 5 years in federal prison per count, plus criminal fines of up to $250,000 for individuals or $500,000 for entities.

What should you do if you receive a subpoena or federal inquiry regarding false claims? Exercise your right to remain silent and contact an experienced federal criminal defense attorney immediately before making statements or producing documents to federal investigators.

How a Federal Criminal Defense Attorney Can Help

Navigating a federal investigation or indictment under 18 U.S.C. § 287 requires immediate, strategic intervention by an experienced federal defense lawyer at the Esfandi Law Group.

Pre-Indictment Intervention & Negotiation: Early representation allows your attorney to engage directly with Department of Justice prosecutors and federal investigators before formal charges are filed, often persuading the government to drop the investigation, decline criminal prosecution, or resolve the matter civilly.
Challenging Materiality and Scienter: Your lawyer will conduct an independent audit of billing records, contracts, and internal communications to demonstrate a lack of fraudulent intent, proving the disputed claims resulted from complex regulatory misunderstandings or innocent administrative errors.
Filing Pre-Trial Motions to Suppress: An experienced defense attorney can identify Fourth, Fifth, or Sixth Amendment violations during the federal investigation and file targeted motions to suppress illegally obtained evidence or statements, significantly weakening the prosecution's case.
Sentencing Loss Calculation Defense: If charges proceed, your counsel will aggressively contest the government's "intended loss" calculations under the Federal Sentencing Guidelines, presenting mitigating evidence to drastically minimize potential prison exposure and avoid statutory enhancements.
Federal Jury Trial Representation: If a favorable pre-trial resolution cannot be reached, a skilled federal litigator will construct a compelling trial strategy, present expert testimony, cross-examine government witnesses, and hold prosecutors to their high burden of proof beyond a reasonable doubt.

To schedule a free consultation, call (310) 274-6529 or use the contact form.

False Claims Act