81 Ct. Cl. 210 | Ct. Cl. | 1934
delivered the opinion of the court:
The question before the court in this case arises from the defendant’s charge that during the progress of the taking of evidence in the case plaintiff corruptly attempted to practice and did practice a fraud against the United States in the proof, statement, and establishment of his claim, or a part thereof, against the United States, upon which charge of fraud the defendant, under the proof submitted thereon, prays that the court enter judgment forfeiting the claim to
Section 172 of the Judicial Code, U. S. Code, title 28, section 279, provides as follows: “Any person who corruptly practices or attempts to practice any fraud ag-ainst the United States in the proof, statement, establishment, or allowance of any claim or of any part of any claim against the United States shall, ipso facto, forfeit the same to the Government; and it shall be the duty of the Court of Claims, in such cases, to find specifically that such fraud was practiced or attempted to be practiced, and thereupon to give judgment that such claim is forfeited to the Government, and that the claimant be forever barred from prosecuting the same.” This section was enacted for the purpose of affording the Government an effective means of defeating actions based on false claims and fraudulent proofs in the establishment of a claim in whole or in part, and it must be rigidly enforced to protect the Government against payment of false and fraudulent claims. The amount by which the claim is affected is unimportant if the attempted fraud is established. In such a case the Government must file a plea setting up the matters constituting the fraud and assume the burden of proving that fraud was practiced or attempted. Such a plea has been filed and the burden assumed by the defendant in the case at bar. Upon the filing of the plea the court ordered that the hearing on the merits be suspended and that all evidence which either party desired to submit on the question of fraud be taken. On this issue both parties Avere given full opportunity to be heard and a large volume of testimony was submitted, all of which has been carefully considered and weighed.
The question whether plaintiff practiced or attempted to practice fraud by changing certain entries in certain of his books of account after they had been introduced in evidence as a part of his proof in support of his claim and while they were in the custody of the court is primarily a question of fact to be determined from a fair and impartial consideration of all the testimony introduced. Such consideration has been given and a finding of fact has been made which,
Books of account currently kept are, when properly identified, always evidence of -business transactions and changed entries therein when the books contain a number of items, are likely to escape detection, and false entries in such books, of account are the surest earmarks of intention to defraud..
Upon the whole record the court is irresistibly led to the conclusion that the changes in question were made by plaintiff, Blume, willfully and fraudulently in an attempt to-practice a fraud against the United States and the court, therefore adjudges the claim made by him to- be forfeited, to the United States.
At the hearing on the merits of the issue of fraud, the Globe Indemnity Company and the Fidelity Deposit Company of Maryland, sureties on plaintiff’s b.ond of December-27, 1927, to the United States for the faithful performance, of Charles A. Blume’s undertakings Under the contract upon which he brought the action, filed a motion asking-leave of the court to intervene before any action was taken by the court on the question of fraud. A petition of inter