Example of a “Major Fraud”

The “Major Fraud Act of 1988” (MFA) was passed during the Reagan administration to strengthen previous fraud legislation. Among the changes, the MFA increased the maximum penalties for fraud and added protection for employees who assist in prosecuting fraud. The Act made it illegal to defraud the U.S. Government or to obtain money or property by means of a false pretense or representation. The Law authorizes fines up to $10 million in cases involving multiple violations and a maximum of $5 million for individual counts.

SOURCE: Example of a “Major Fraud”