The False Claims Act (31 U.S.C. §§ 3729–3733) imposes liability on companies that knowingly misrepresent compliance in order to receive or retain federal contracts. Penalties include treble damages (three times the government’s losses) plus additional penalties per claim.
Supporting Extracts from Official Content:
False Claims Act: “Any person who knowingly submits false claims to the Government is liable for three times the Government’s damages plus a penalty.”
DOJ Cyber-Fraud Initiative (2021): confirms the FCA is applied to cases of misrepresenting compliance with cybersecurity requirements.
Why Option D is Correct:
The applicable law is the False Claims Act, not a “Cyber Claims Act” (which does not exist).
The FCA specifies treble damages plus penalties, which exactly matches Option D.
References (Official CMMC v2.0 Governance and Source Documents):
False Claims Act (31 U.S.C. §§ 3729–3733).
DOJ Cyber-Fraud Initiative (2021), applied to CMMC-related compliance misrepresentation.
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