CCT Enforcement and Penalties 2 — Questions and Answers
Question 1: Under the False Claims Act, what is the minimum civil penalty per false claim submitted to the federal government?
- $500
- $2,500
- $13,946 (Correct answer)
- $50,000
Correct answer: $13,946
The False Claims Act imposes civil penalties per false claim that are adjusted for inflation; the current minimum is approximately $13,946 per violation.
Question 2: A qui tam relator under the False Claims Act who brings a successful lawsuit on behalf of the government is typically entitled to what percentage of the government's recovery when the government intervenes?
- 5-10%
- 15-25% (Correct answer)
- 30-40%
- 50%
Correct answer: 15-25%
When the government intervenes in a qui tam action, the relator receives 15–25% of the proceeds of the action or settlement.
Question 3: Which federal agency primarily enforces the Foreign Corrupt Practices Act (FCPA) regarding bribery of foreign officials?
- FTC and FCC jointly
- DOJ and SEC jointly (Correct answer)
- Treasury and State Department jointly
- FBI alone
Correct answer: DOJ and SEC jointly
The Department of Justice (DOJ) and Securities and Exchange Commission (SEC) share FCPA enforcement authority for criminal and civil matters respectively.
Question 4: What is the legal doctrine that allows courts to hold a corporation criminally liable for the acts of its employees committed within the scope of employment?
- Respondeat superior (Correct answer)
- Vicarious immunity
- Corporate veil
- Strict liability
Correct answer: Respondeat superior
Respondeat superior ('let the master answer') is the doctrine making employers liable for employees' wrongful acts committed within the scope of their employment.
Question 5: Under OSHA's penalty structure, what category of violation carries the highest maximum penalty per violation?
- Other-than-serious
- Serious
- Repeat
- Willful (Correct answer)
Correct answer: Willful
Willful violations carry the highest OSHA penalties, up to approximately $156,259 per violation as of recent adjustments.
Question 6: A company voluntarily discloses an FCPA violation to the DOJ before an investigation begins. What is the most likely benefit of voluntary disclosure?
- Complete immunity from prosecution
- A presumption of declination or reduced penalty (Correct answer)
- Guaranteed deferred prosecution agreement
- Reduction of penalties to zero
Correct answer: A presumption of declination or reduced penalty
DOJ's FCPA Corporate Enforcement Policy creates a presumption of declination for companies that voluntarily self-disclose, fully cooperate, and remediate.
Question 7: In the context of enforcement, what does a 'consent decree' represent?
- A criminal conviction entered without trial
- A court-enforceable settlement agreement between a regulator and a company (Correct answer)
- An internal compliance commitment with no external oversight
- A temporary restraining order against business operations
Correct answer: A court-enforceable settlement agreement between a regulator and a company
A consent decree is a negotiated, court-approved agreement that resolves an enforcement action and is legally binding and enforceable.
CCT Enforcement and Penalties 2
Under the False Claims Act, what is the minimum civil penalty per false claim submitted to the federal government?