Opinion ID: 67082
Heading Depth: 4
Heading Rank: 2

Heading: Requisite Scienter

Text: The Government contends that the Defendants' fraudulent conduct was made or carried out with the requisite scienter. The scienter requirement comes from § 3729(b)'s definition of the terms knowing and knowingly. We have explained that [t]hough the FCA is plain that `proof of specific intent to defraud' is not necessary, [the mens rea] requirement is not met by mere negligence or even gross negligence. United States ex rel. Farmer v. City of Houston, 523 F.3d 333, 338 (5th Cir.2008) (internal citation omitted). Thus, the Government must demonstrate the Defendants had (1) actual knowledge of falsity, (2) acted with deliberate ignorance of the truth or falsity of the information provided, or (3) acted with reckless disregard of the truth or falsity of the information provided when the Defendants fraudulently induced the BMDO and Air Force to award them the SBIR grants. See id. at 339.