State False Claims Act

California False Claims Act

The California False Claims Act has been in existence since 1987 but did not receive much attention until the early 1990s. Today, the California False Claims Act is an effective weapon among public entities fighting against the payment claims of contractors. The False Claims Act prohibits any person doing business with the state or a public subdivision of the state from making false or fraudulent claims or statements in support of a claim. The California False Claims Act offers protections for employees who notify the government about their employer's violations of the act. These violations specifically include a party who:

• Knowingly presents or causes to be presented to an officer or employee of the state or of any political subdivision thereof, a false claim for payment or approval.
• Knowingly makes, uses, or causes to be made or used a false record or statement to get a false claim paid or approved by the state or by any political subdivision.
• Conspires to defraud the state or any political subdivision by getting a false claim allowed or paid by the state or by any political subdivision.
• Has possession, custody, or control of public property or money used or to be used by the state or by any political subdivision and knowingly delivers or causes to be delivered less property than the amount for which the person receives a certificate or receipt.
• Is authorized to make or deliver a document certifying receipt of property used or to be used by the state or by any political subdivision and knowingly makes or delivers a receipt that falsely represents the property used or to be used.
• Knowingly buys, or receives as a pledge of an obligation or debt, public property from any person who lawfully may not sell or pledge the property.
• Knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease an obligation to pay or transmit money or property to the state or to any political subdivision.
• Is a beneficiary of an inadvertent submission of a false claim to the state or a political subdivision, subsequently discovers the falsity of the claim, and fails to disclose the false claim to the state or the political subdivision within a reasonable time after discovery of the false claim. [The California False Claims Act, Cal. Gov't Code §§ 12650-12655 (1992)]

 

Delaware False Claims Act

Delaware is one of a growing number of states that has created a False Claims Act to protect its public resources and citizens. The Delaware False Claims and Reporting Act has proven itself to be a valuable piece of legislation to combat unfair practices by contractors who work with the government and are dishonest with taxpayer dollars.

The Delaware False Claims and Reporting Act helps protect employees who report those who violate state laws. The act punishes any person who:

• Knowingly presents, or causes to be presented, directly or indirectly, to an officer or employee of the Government a false or fraudulent claim for payment or approval;
• Knowingly makes, uses or causes to be made or used, directly or indirectly, a false record or statement to get a false or fraudulent claim paid or approved;
• Conspires to defraud the Government by getting a false or fraudulent claim allowed or paid;
• Has possession, custody or control of property or money used or to be used by the Government and, intending to defraud the Government or willfully to conceal the property, delivers or causes to be delivered, less property than the amount for which the person receives a certificate or receipt;
• Is authorized to make or deliver a document certifying receipt of property used or to be used by the Government and, intending to defraud the Government, makes or delivers the receipt without completely knowing that the information on the receipt is true;
• Knowingly buys, or receives as a pledge of an obligation or debt, public property from an officer or employee of the Government who the person knows may not lawfully sell or pledge the property; or
• Knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, increase or decrease an obligation to pay or transmit money or property to or from the Government

Florida False Claims Act

In 1996, CareFlorida Health Plan Inc was tried for submitting fraudulent Medicaid enrollments and ordered to pay nearly $2 million for violating the Florida False Claims Act. Thanks to a concerned citizen, the unlawful use of taxpayer dollars was stopped and the state of Florida was able to obtain reparations for the economic damages it sustained.

As described in Florida legislature, the purpose of the Florida False Claims Act is, “to deter persons from knowingly causing or assisting in causing state government to pay claims that are false, and to provide remedies for obtaining treble damages and civil penalties for state government when money is obtained from state government by reason of a false claim”. It is the responsibility of each Floridian to be vigilant and to report violations of the Act to the appropriate agencies.

Hawaii False Claims Act

In 2001, the Bergen Brunswig Corp. was ordered to pay $4 million for violating the Hawaii False Claims Act by wrongfully recycling and repackaging unused drugs from nursing home facilities. The actions of this company are unhealthy and create unsafe living conditions for our senior citizens. Fortunately, one brave individual took the necessary steps to interfere with Bergen Brunswig’s illegal endeavors.

Hawaii offers a False Claims Act that addresses both false claims to the state and false claims to the counties. According to Hawaiian legislature, the act is designed to punish any person who:

• Knowingly presents, or causes to be presented, to an officer or employee of the State a false or fraudulent claim for payment or approval;
• Knowingly makes, uses, or causes to be made or used, a false record or statement to get a false or fraudulent claim paid or approved by the State;
• Conspires to defraud the State by getting a false or fraudulent claim allowed or paid;
• Has possession, custody, or control of property or money used, or to be used, by the State and, intending to defraud the State or wilfully to conceal the property, delivers, or causes to be delivered, less property than the amount for which the person receives a certificate or receipt;
• Is authorized to make or deliver a document certifying receipt of property used, or to be used by the State and, intending to defraud the State, makes or delivers the receipt without completely knowing that the information on the receipt is true;
• Knowingly buys, or receives as a pledge of an obligation or debt, public property from any officer or employee of the State who may not lawfully sell or pledge the property;
• Knowingly makes, uses, or causes to be made or used, a false record or statement to conceal, avoid, or decrease an obligation to pay or transmit money or property to the State; or
• Is a beneficiary of an inadvertent submission of a false claim to the State, who subsequently discovers the falsity of the claim, and fails to disclose the false claim to the State within a reasonable time after discovery of the false claim.

Illinois False Claims Act

Under the Illinois False Claims Act, the plaintiff who brings a violation to the attention to the State is entitled to somewhere between 15 and 25 percent of the proceeds of the action or settlement of the claim. The Illinois False Claims Act is designed to help reward and protect citizens who inform the government about groups that are conducting dishonest business with the state of Illinois.

As defined in the legislature, Illinois seeks to hold any person liable who:

• knowingly presents, or causes to be presented, to an officer or employee of the State or a member of the Guard a false or fraudulent claim for payment or approval;
• knowingly makes, uses, or causes to be made or used, a false record or statement to get a false or fraudulent claim paid or approved by the State:
• conspires to defraud the State by getting a false or fraudulent claim allowed or paid;
• has possession, custody, or control of property or money used, or to be used, by the State and, intending to defraud the State or willfully to conceal the property. delivers, or causes to be delivered, less property than the amount for which the person receives a certificate or receipt;
• authorized to make or deliver a document certifying receipt of property used, or to be used, by the State and, intending to defraud the State, makes or delivers the receipt without completely knowing that the information on the ,receipt is true;
• knowingly buys, or receives as a pledge of an obligation or debt, public property from an officer or employee of the State, or a member of the Guard, who lawfully may not sell or pledge the property; or
• knowingly makes, uses, or causes to be made or used, a false record or statement to conceal, avoid or decrease an obligation to pay or transmit money or property to the State.

Louisiana False Claims Act

Louisiana has a False Claims Act that focuses on the integrity of medical assistance programs. Specifically, it is written that the legislature was “enacted to combat and prevent fraud and abuse committed by some health care providers participating in the medical assistance programs and by other persons and to negate the adverse effects such activities have on fiscal and programmatic integrity”.

The Louisiana False Claims Act was approved in 1997 and has been a valuable piece of legislation to promote honesty in the medical industry. Written into the act are explanations of protection the plaintiff may receive. Under the law, the plaintiff may not be harassed or fired for bringing the illegal activities of his workplace to the government’s attention.

Massachusetts False Claims Act

The state of Massachusetts has instituted a False Claims Act that was developed to prevent dishonesty and protect citizens who bring illegal actions to the attention of the government. Under Massachusetts law it is illegal for a person or company to make false claims to any government agency for payment or approval.

Specifically, the Massachusetts False Claims Act targets individuals who:

• knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval;
• knowingly makes, uses, or causes to be made or used, a false record or statement to obtain payment or approval of a claim by the commonwealth or any political subdivision thereof;
• conspires to defraud the commonwealth or any political subdivision thereof through the allowance or payment of a fraudulent claim;
• has possession, custody, or control of property or money used, or to be used, by the commonwealth or any political subdivision thereof and knowingly delivers, or causes to be delivered to the commonwealth, less property than the amount for which the person receives a certificate or receipt with the intent to willfully conceal the property;
• is authorized to make or deliver a document certifying receipt of property used, or to be used, by the commonwealth or any political subdivision thereof and with the intent of defrauding the commonwealth or any political subdivision thereof, makes or delivers the receipt without completely knowing that the information on the receipt is true;
• buys, or receives as a pledge of an obligation or debt, public property from an officer or employee of the commonwealth or any political subdivision thereof, knowing that said officer or employee may not lawfully sell or pledge the property;
• enters into an agreement, contract or understanding with one or more officials of the commonwealth or any political subdivision thereof knowing the information contained therein is false;
• knowingly makes, uses, or causes to be made or used, a false record or statement to conceal, avoid, or decrease an obligation to pay or to transmit money or property to the commonwealth or political subdivision thereof; or
• is a beneficiary of an inadvertent submission of a false claim to the commonwealth or political subdivision thereof, subsequently discovers the falsity of the claim, and fails to disclose the false claim to the commonwealth or political subdivision within a reasonable time after discovery of the false claim shall be liable to the commonwealth or political subdivision

 

Nevada False Claims Act

The state of Nevada has taken steps to protect government and taxpayers against dishonest contractors. An important piece of legislation to this end is the Nevada False Claims Act, which protects whistleblowers and punishes those who disrespect the people of Nevada by making false claims.

The Nevada False Claims Act orders the responsible party to pay for damages sustained by the state or political subdivision. Under the legislation, the following acts may be committed by the responsible party:

• Knowingly presents or causes to be presented a false claim for payment or approval.
• Knowingly makes or uses, or causes to be made or used, a false record or statement to obtain payment or approval of a false claim.
• Conspires to defraud by obtaining allowance or payment of a false claim.
• Has possession, custody or control of public property or money and knowingly delivers or causes to be delivered to the state or a political subdivision less money or property than the amount for which he receives a receipt.
• Is authorized to prepare or deliver a receipt for money or property to be used by the state or a political subdivision and knowingly prepares or delivers a receipt that falsely represents the money or property.
• Knowingly buys, or receives as security for an obligation, public property from a person who is not authorized to sell or pledge the property.
• Knowingly makes or uses, or causes to be made or used, a false record or statement to conceal, avoid or decrease an obligation to pay or transmit money or property to the state or a political subdivision.
• Is a beneficiary of an inadvertent submission of a false claim and, after discovering the falsity of the claim, fails to disclose the falsity to the state or political subdivision within a reasonable time.

Tennessee False Claims Act

The Tennessee Medicaid False Claims Act protects the government and taxpayers from false Medicaid payment claims. Under this legislation, the person who brings the action before the state is entitled to between 25 and 30 percent of the proceeds of the action or settlement. However, there is a statute of limitations regarding the duration one may be privy to this knowledge before reporting it to the proper authorities.

The Tennessee Medicaid False Claims Act specifically targets any person who:

• Presents, or causes to be presented, to the state of Tennessee a claim for payment under the Medicaid program knowing such claim is false or fraudulent;
• Makes, uses, or causes to be made or used, a record or statement to get a false or fraudulent claim under the Medicaid program paid for or approved by the state knowing such record or statement is false;
• Conspires to defraud the state by getting a claim allowed or paid under the Medicaid program knowing such claim is false or fraudulent; or
• Makes, uses, or causes to be made or used, a record or statement to conceal, avoid, or decrease an obligation to pay or transmit money or property to the state, relative to the Medicaid program, knowing such record or statement is false