Chapter 3. Actions · Article 19.1. Virginia Fraud Against Taxpayers Act · Last amended 2026 · Last verified July 16, 2026
1. Knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval;
2. Knowingly makes, uses, or causes to be made or used, a false record or statement material to a false or fraudulent claim;
3. Conspires to commit a violation of subdivision 1, 2, 4, 5, 6, 7, 8, 9, or 10;
4. Has possession, custody, or control of property or money used, or to be used, by the Commonwealth and knowingly delivers, or causes to be delivered, less than all such money or property;
5. Has possession, custody, or control of an illegal gambling device, as defined in § 18.2-325, knowing such device is illegal, and knowingly conceals, avoids, or decreases an obligation to pay or transmit money to the Commonwealth that is derived from the operation of such device;
6. Manufactures for sale, sells, or distributes an illegal gaming device knowing that such device is or is intended to be operated in the Commonwealth in violation of Article 1 (§ 18.2-325 et seq.) or Article 1.1:1 (§ 18.2-340.15 et seq.) of Chapter 8 of Title 18.2;
7. Is authorized to make or deliver a document certifying receipt of property used, or to be used, by the Commonwealth and, intending to defraud the Commonwealth, makes or delivers the receipt without completely knowing that the information on the receipt is true;
8. Knowingly buys or receives as a pledge of an obligation or debt, public property from an officer or employee of the Commonwealth who lawfully may not sell or pledge the property;
9. Knowingly makes, uses, or causes to be made or used, a false record or statement material to an obligation to pay or transmit money or property to the Commonwealth or knowingly conceals or knowingly and improperly avoids or decreases an obligation to pay or transmit money or property to the Commonwealth; or
10. Except as otherwise permitted by the Cannabis Control Act (§ 4.1-600 et seq.), offers for sale or sells at retail a substance intended for human consumption, orally or by inhalation, that (i) contains a total tetrahydrocannabinol concentration that is greater than 0.3 percent or (ii) contains more than two milligrams of total tetrahydrocannabinol per package in violation of § 3.2-4126 or Article 1 (§ 18.2-247 et seq.) of Chapter 7 of Title 18.2;
shall be liable to the Commonwealth for a civil penalty of not less than $10,957 and not more than $21,916, except that these lower and upper limits on liability shall automatically be adjusted to equal the amounts allowed under the Federal False Claims Act, 31 U.S.C. § 3729 et seq., as amended, as such penalties in the Federal False Claims Act are adjusted for inflation by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended (28 U.S.C. § 2461 Note, P.L. 101-410), plus three times the amount of damages sustained by the Commonwealth.
A person violating this section shall be liable to the Commonwealth for reasonable attorney fees and costs of a civil action brought to recover any such penalties or damages. All such fees and costs shall be paid to the Attorney General's Office by the defendant and shall not be included in any damages or civil penalties recovered in a civil action based on a violation of this section.
B. If the court finds that (i) the person committing the violation of this section furnished officials of the Commonwealth responsible for investigating false claims violations with all information known to the person about the violation within 30 days after the date on which the defendant first obtained the information; (ii) such person fully cooperated with any Commonwealth investigation of such violation; (iii) at the time such person furnished the Commonwealth with the information about the violation, no criminal prosecution, civil action, or administrative action had commenced with respect to such violation; and (iv) the person did not have actual knowledge of the existence of an investigation into such violation, the court may assess not less than two times the amount of damages that the Commonwealth sustains because of the act of that person. A person violating this section shall also be liable to the Commonwealth for the costs of a civil action brought to recover any such penalty or damages.
C. For purposes of this section, the terms "knowing" and "knowingly" mean that a person, with respect to information, (i) has actual knowledge of the information; (ii) acts in deliberate ignorance of the truth or falsity of the information; or (iii) acts in reckless disregard of the truth or falsity of the information and require no proof of specific intent to defraud.
D. Except as provided in subdivision A 5, this section shall not apply to claims, records, or statements relating to state or local taxes.
Section 8.01-216.3, in the version taking effect November 1, 2026, sets out the conduct that triggers liability under the Virginia Fraud Against Taxpayers Act. Subsection A lists ten categories: presenting a false or fraudulent claim for payment; using a false record material to a claim; conspiring in a listed violation; withholding money or property owed to the Commonwealth; concealing an obligation tied to an illegal gambling device or manufacturing and distributing an illegal gaming device for use in Virginia; issuing a false receipt for Commonwealth property; buying public property an official is not allowed to sell; concealing or avoiding an obligation to pay the Commonwealth; and, with an exception for conduct permitted under the Cannabis Control Act, selling at retail a THC product that exceeds set concentration or per-package limits. A person who commits any of these acts owes the Commonwealth a civil penalty within a dollar range that adjusts automatically to track inflation adjustments under the federal False Claims Act, plus three times the Commonwealth’s damages, plus the Commonwealth’s reasonable attorney fees and costs.
Subsection B rewards prompt, voluntary cooperation. If a court finds that the violator disclosed everything known about the violation within 30 days of learning it, cooperated fully with the Commonwealth’s investigation, had not yet been the subject of a criminal, civil, or administrative action over the violation, and did not know an investigation was already underway, the court may cut the damages multiplier from three times down to two times — though the violator still owes the costs of the action.
Subsection C defines “knowing” and “knowingly” broadly: a person acts knowingly by having actual knowledge of the relevant information, by deliberately ignoring whether it is true or false, or by recklessly disregarding its truth or falsity. No proof of a specific intent to defraud is required. Subsection D excludes claims, records, or statements relating to state or local taxes from the section’s reach, with one carve-out — the illegal-gambling-device provision in subdivision A 5 still applies even to tax-related conduct.
2002, c. 842; 2004, c. 589; 2007, c. 569; 2011, c. 676; 2018, c. 624; 2020, c. 791; 2022, c. 553; 2026, c. 1016.