Under what condition can penalties under the False Claims Act be reduced to two times the amount of damages?

The correct choice indicates that penalties under the False Claims Act can be reduced to two times the amount of damages if the person fully cooperates with the investigation within 30 days of notification. This condition emphasizes the importance of proactive engagement in the healing process of compliance violations. The rationale behind this provision is to encourage individuals or entities to come forward and assist authorities in their investigations, which can lead to quicker resolutions, potential recovery of funds, and improved compliance frameworks.

This cooperation might involve providing necessary documents, facilitating interviews, and offering any other information required to clarify the situation, indicating a willingness to correct any wrongdoings. Such collaborative behavior can often help mitigate the severity of penalties, reinforcing the overall goal of the False Claims Act to deter fraudulent claims while also supporting those who demonstrate accountability.

Understanding this principle highlights the value placed on cooperation as a way to address compliance failures, placing less emphasis on punitive measures when good faith efforts are made to remedy mistakes.