PART 2419—THE ADMINISTRATIVE FALSE CLAIMS ACT Authority: 31 U.S.C. 3803(g), 3809; Sec. 5203(j), Pub. L. 118-159, 138 Stat. 2440. Source: 91 FR 21715, Apr. 23, 2026, unless otherwise noted. § 2419.1 Background. (a) Legal authority. (b) Limitations. (c) Computation of time. (1) When the period of time allowed is less than 7 days, intermediate Saturdays, Sundays, and legal holidays observed by the Federal Government shall be excluded from the computation. (2) Where a document has been served or issued by placing it in the mail, an additional 5 days will be added to the time permitted for any response. (d) Stays ordered by the Department of Justice. (e) Additional referrals. (f) Board of contract appeals. [91 FR 21715, Apr. 23, 2026; 91 FR 25073, May 8, 2026] § 2419.2 Definitions. (a) Definitions from the statute. (b) Complaint (c) Defendant (d) Authority Head (e) Representative § 2419.3 Pre-complaint procedures. (a) Investigating Official. (1) If the investigating official concludes that an action under the Administrative False Claims Act may be warranted, the investigating official shall submit a report containing the findings and conclusions of such investigation to the reviewing official. (2) Nothing in this section shall preclude or limit the investigating official's discretion to refer allegations directly to the Department of Justice for suit under the False Claims Act (31 U.S.C. 3729-3733) or other civil relief, or to defer or postpone a report or referral to the reviewing official to avoid interference with a criminal investigation or prosecution. (3) Nothing in this section modifies any responsibility of the investigating official to report violations of criminal law to the Attorney General. (b) Reviewing Official. (1) Determination. (2) Written notice. (i) A statement of the reviewing official's reasons for issuing a complaint; (ii) A statement specifying the evidence that supports the allegations of liability; (iii) A description of the claims or statements upon which the allegations of liability are based; (iv) An estimate of the amount of money, or the value of property, services, or other benefits, requested or demanded in violation of the Administrative False Claims Act; (v) A statement of any exculpatory or mitigating circumstances that may relate to the claims or statements known by the reviewing official or the investigating official; and (vi) A statement that there is a reasonable prospect of collecting an appropriate amount of penalties and assessments. (c) Request for authorization from the Department of Justice. (1) The Department of Justice approves the issuance of a complaint in a written statement described in 31 U.S.C. 3803(b)(1), and (2) In the case of allegations of liability under 31 U.S.C. 3802(a)(1) with respect to a claim, the reviewing official determines that, with respect to such claim or a group of related claims submitted at the same time such claim is submitted, the amount of money, or the value of property or services, demanded or requested in violation of section 3802(a)(1) does not exceed $1,000,000. (3) For the purposes of this section, a related group of claims submitted at the same time shall include only those claims arising from the same transaction ( e.g., (4) Nothing in this section shall be construed to limit the reviewing official's authority to join in a single complaint against a person, claims that are unrelated or were not submitted simultaneously, regardless of the amount of money, or the value of property or services, demanded or requested. (d) Written notifications. § 2419.4 Complaint and pre-hearing procedures. (a) Complaint. (1) The allegations of liability against the defendant, including the statutory basis for liability, an identification of the claims or statements that are the basis for the alleged liability, and the reasons why liability allegedly arises from such claims or statements; (2) The maximum amount of penalties and assessments for which the defendant may be held liable; (3) Instructions for filing an answer, including a specific statement of the defendant's right to request a hearing and to be represented by a representative; (4) Identification and contact information for the governmental employee representing the reviewing official in the matter if the reviewing official is not handling the matter personally; and (5) The fact that failure to file an answer within 30 days of service of the complaint will result in the imposition of the maximum amount of penalties and assessments without right to appeal, as provided in § 2419.4(d). (6) At the same time the reviewing official serves the complaint, he or she shall serve the defendant with a copy of these regulations or identify a free online resource where the defendant can access these regulations. (b) Service of the complaint. (c) Answer. https://www.flra.gov/components-offices/offices/office-solicitor (1) In the answer, the defendant: (i) Shall admit or deny each of the allegations of liability made in the complaint; (ii) Shall state any defense on which the defendant intends to rely; (iii) May state any reasons why the defendant contends that the penalties and assessments should be less than the statutory maximum; and (iv) Shall state the name, postal address, electronic mail address, and telephone number of the person authorized by the defendant to act as defendant's representative, if any. (2) Hearing. (3) General answer. (d) Default upon failure to file an answer. (1) Upon the referral of the complaint, the presiding officer shall promptly serve on the defendant in the manner prescribed in paragraph (b) of this section, a notice that an initial decision will be issued under this section. (2) The presiding officer shall assume the facts alleged in the complaint to be true and, if such facts establish liability under 31 U.S.C. 3802, the presiding officer shall issue an initial decision imposing the maximum amount of penalties and assessments allowed under the statute. (3) Except as otherwise provided in this section, by failing to file a timely answer the defendant waives any right to further review of the penalties and assessments imposed under paragraph (d)(2) of this section and the initial decision shall become final and binding upon the parties 30 days after it is issued. (4) If, before such an initial decision becomes final, the defendant files a motion with the presiding officer seeking to reopen on the grounds that extraordinary circumstances prevented the defendant from filing an answer, the initial decision shall be stayed pending the presiding officer's decision on the motion. (5) If, on such motion, the defendant can demonstrate extraordinary circumstances excusing the failure to file a timely answer, the presiding officer shall withdraw the initial decision in paragraph (d)(2) of this section, if such a decision has been issued, and shall grant the defendant an opportunity to answer the complaint. (6) A decision of the presiding officer denying a defendant's motion under paragraph (d)(4) of this section is not subject to reconsideration under § 2419.6(d). (7) The defendant may appeal to the authority head the decision denying a motion to reopen by filing a notice of appeal with the authority head within 15 days after the presiding officer denies the motion. The timely filing of a notice of appeal shall stay the initial decision until the authority head decides the issue. (8) If the defendant files a timely notice of appeal with the authority head, the presiding officer shall forward the record of the proceeding to the authority head. (9) The authority head shall decide expeditiously whether extraordinary circumstances excuse the defendant's failure to file a timely answer based solely on the record before the presiding officer. (10) If the authority head decides that extraordinary circumstances excused the defendant's failure to file a timely answer, the authority head shall remand the case to the presiding officer with instructions to grant the defendant an opportunity to answer. (11) If the authority head decides that the defendant's failure to file a timely answer is not excused, the authority head shall reinstate the initial decision of the presiding officer, which shall become final and binding upon the parties 30 days after the authority head issues such decision. (e) Presiding officer disqualification and authorities. (1) Motion and affidavit. (i) Such motion and affidavit shall be filed promptly with the presiding officer upon the party's discovery of reasons requiring disqualification, or such objections shall be deemed waived. (ii) Such affidavit shall state specific facts that support the party's belief that personal bias or other reason for disqualification exists and the time and circumstances of the party's discovery of such facts. It shall be accompanied by a certificate of the representative of record that it is made in good faith. (iii) Upon the filing of such a motion and affidavit, the presiding officer shall proceed no further in the case until the presiding officer resolves the matter of disqualification in accordance with this section. (2) Authority of the presiding officer. (i) Set and change the date, time, and place of the hearing upon reasonable notice to the parties; (ii) Continue or recess the hearing in whole or in part for a reasonable period of time; (iii) Hold conferences to identify or simplify the issues, or to consider other matters that may aid in the expeditious disposition of the proceeding; (iv) Administer oaths and affirmations; (v) For the purpose of conducting a hearing, the presiding officer may issue subpoenas requiring the attendance and testimony of witnesses as well as the production of information as set forth in 31 U.S.C. 3804(b)(2); (vi) Rule on motions and other procedural matters; (vii) Regulate the requirements regarding motions including requiring any oral motion to be reduced to writing and establishing the time within which a response to any written motion will be due if the motion will not be due within 15 days after the written motion is served; (viii) Regulate the scope and timing of discovery; (ix) Regulate the course of the hearing and the conduct of representatives and parties to include imposing sanctions such as drawing adverse inferences, striking pleadings, deeming items admitted, restricting use of evidence, dismissing an action, or issuing an initial decision—that reasonably relate to the severity and nature of the failure or misconduct; (x) Examine witnesses; (xi) Receive, rule on, exclude, or limit evidence; (xii) Upon motion of a party, take official notice of facts; (xiii) Upon motion of a party, decide cases, in whole or in part, by summary judgment where there is no disputed issue of material fact; (xiv) Conduct any conference, argument, or hearing on motions in person or by telephone, videoconference, or other virtual method; and (xv) Exercise such other authority as is necessary to carry out the responsibilities of the presiding officer under this part. (xvi) Irrespective of any implications of the above, the presiding officer does not have the authority to find Federal statutes or regulations invalid. (xvii) Additionally, the presiding officer shall not, except to the extent required for the disposition of ex parte matters as authorized by law: (A) Consult a person or party on a fact in issue, unless on notice and opportunity for all parties to the hearing to participate; or (B) Be responsible to or subject to the supervision or direction of the investigating official or the reviewing official. (f) Prehearing. (1) Entitlement to review and obtain information. (2) Discovery. (i) The presiding officer may order the following types of discovery: (A) Requests for production of documents for inspection and copying; (B) Requests for admissions of the authenticity of any relevant document or of the truth of any relevant fact; (C) Written interrogatories; and (D) Depositions. (ii) A party seeking discovery must file a motion with the presiding officer. Such a motion shall be accompanied by a copy of the requested discovery, or in the case of depositions, a summary of the scope of the proposed deposition. Within 10 days of service, a party may file an opposition to the motion and/or a motion for protective order as provided in § 2419.4(f)(3). The presiding officer may grant a motion for discovery only if he or she finds that the discovery sought: (A) Is necessary for the expeditious, fair, and reasonable consideration of the issues; (B) Is not unduly costly or burdensome; (C) Will not unduly delay the proceeding; and (D) Does not seek privileged information. (iii) The burden of showing that discovery should be allowed is on the party seeking discovery. (iv) The presiding officer shall regulate the timing of discovery. (3) Protective orders. (i) That the discovery not be had; (ii) That the discovery may be had only on specified terms and conditions, including a designation of the time or place; (iii) That the discovery may be had only through a method of discovery other than that requested; (iv) That certain matters not be the subject of inquiry, or that the scope of discovery be limited to certain matters; (v) That discovery be conducted with no one present except persons designated by the presiding officer; (vi) That the contents of discovery or evidence be sealed; (vii) That a sealed deposition be opened only by order of the presiding officer; (viii) That a trade secret or other confidential research, development, commercial information, or facts pertaining to any criminal investigation, proceeding, or other administrative investigation not be disclosed or be disclosed only in a designated way; or (ix) That the parties simultaneously file specified documents. (4) Prehearing orders. (i) Sets the hearing in a location permissible under 31 U.S.C. 3803(g)(4); (ii) Provides the written notice required by 31 U.S.C. 3803(g)(2)(A); (iii) Governs the exchange of witness lists, statements, and exhibits; (iv) Ensures the defendant has an opportunity to present their case, to submit rebuttal evidence, and to conduct such cross-examination as may be required for a full and true disclosure of the facts; and (v) Includes in any written notice of a hearing to a defendant a description of the procedures for the conduct of the hearing. § 2419.5 Hearing. (a) Determinations. (b) Determining the amount of penalties and assessments. i.e., (1) The number of false, fictitious or fraudulent claims or statements; (2) The time period over which such claims or statements were made; (3) The degree of the defendant's culpability with respect to the misconduct; (4) The amount of money or the value of the property, services, or benefit falsely claimed; (5) The cost of the United States Government's actual loss as a result of the misconduct, including foreseeable consequential damages and the costs of investigation; (6) The relationship of the amount imposed as civil penalties to the amount of the United States Government's loss; (7) The potential or actual impact of the misconduct upon public confidence in the management of United States Government programs and operations; (8) Whether the defendant has engaged in a pattern of the same or similar misconduct; (9) Whether the defendant attempted to conceal the misconduct; (10) The degree to which the defendant has involved others in the misconduct or in concealing it; (11) Where the misconduct of employees or agents is imputed to the defendant, the extent to which the defendant's practices fostered or attempted to preclude such misconduct; (12) Whether the defendant cooperated in or obstructed an investigation of the misconduct; (13) Whether the defendant assisted in identifying and prosecuting other wrongdoers; (14) The complexity of the program or transaction, and the degree of the defendant's sophistication with respect to it, including the extent of the defendant's prior participation in the program or in similar transactions; (15) Whether the defendant has been found, in any criminal, civil, or administrative proceeding to have engaged in similar misconduct or to have dealt dishonestly with the United States Government or of a state, directly or indirectly; (16) The need to deter the defendant and others from engaging in the same or similar misconduct; and (17) The potential impact of the misconduct on the rights of others. (c) Other factors. (d) The Record. (1) Transcripts shall be available following the hearing at a cost not to exceed the actual cost of duplication and any court reporter's reasonable fee. (2) The transcript of testimony, exhibits and other evidence admitted at the hearing, and all documents filed in the proceeding constitute the record for the decision by the presiding officer and the authority head. (3) The record may be inspected and copied by anyone upon payment of a reasonable fee, unless otherwise ordered by the presiding officer. § 2419.6 Post-hearing procedures. (a) Post-hearing motions. (b) Post-hearing briefs. (c) Decision. (d) Appeal to the authority head. (1) Except in case of default, if the defendant is determined in the decision to be liable for a civil penalty or assessment, the defendant may appeal such decision to the authority head by filing a notice of appeal with the authority head in accordance with this section. A notice of appeal shall be accompanied by a written brief specifying exceptions to the decision and reasons supporting the exceptions. (i) A notice of appeal may be filed at any time within 30 days after the presiding officer issues the decision. (ii) The authority head may extend the initial 30-day period for an additional 30 days if the defendant files with the authority head a request for an extension within the initial 30-day period and shows good cause. (2) The reviewing official's representative or other designated agency official may file a brief in opposition to the notice of appeal within 30 days of receiving the notice of appeal and accompanying brief. (3) The authority head's review will occur within the limitations noted in 31 U.S.C. 3803(i)(2)(B) and (C). There is no right to appear personally before the authority head. (e) Judicial review. (f) Collection.