N.Y. False Claims Act

What is the New York False Claims Act?

When considering a New York whistleblower lawyer, you need someone you can trust. An experienced and fearless ally who knows how to take on large corporations and Wall Street as well as wealthy fraudsters and white-collar criminals.

These laws ensure that those risking their lives and careers can come forward confidentially, or even anonymously as permitted, and be compensated for their brave actions. If you need a New York whistleblower lawyer for aggressive whistleblower representation, get in touch with us today at DeToffol & Gittleman for a confidential case evaluation.

New York’s False Claims Act is modeled on the federal False Claims Act, but it has a few significant differences that are beneficial to whistleblowers. Each state has its own rules and regulations regarding filing a state “ qui tam “ whistleblower reward case. But to facilitate filing a state qui tam case, Congress amended the federal False Claims Act to make it relatively easy to include New York claims as part of a federal qui tam lawsuit.

If your case does not involve federal funds or violations, you must file the case in a local county Supreme Court. Under the New York False Claims Act whistleblowers can file a qui tam lawsuit under state law by filing a complaint in the appropriate local county Supreme Court.

If you are filing a federal False Claims Act lawsuit, the New York claims can be included in that case, and you do not have to file a separate lawsuit in the N.Y. Supreme Court, yet may be required to serve the State of New York with a copy of the complaint and a disclosure statement.

There is a 10-year statute of limitations for all New York False Claims Act, compared with the 6-year limitations period under the federal False Claims Act, and the New York False Claims Act also has a more relaxed pleading standard for allegations of fraud than under the federal law.

Whistleblowers also have enhanced confidentiality under the New York False Claims Act when they file their complaints under seal in state court. If the state does not intervene in the whistleblower’s case they can withdraw their qui tam complaint while the case is still under seal and the whistleblower’s identity will remain confidential.

What is more, the New York False Claims Act rewards whistleblowers with credible information a percentage of the damages and penalties. If someone is self-reporting their own fraudulent behavior in a larger scheme, they too may be compensated. When ultimately resulting in a sanction against the swindler, you are entitled to a minimum payment of 15% and a maximum payment of 30% of the proceeds awarded by the court and collected by the government, and additional civil penalties too for each violation.

Healthcare examples –

Healthcare fraud cases are almost always filed under both federal and state False Claims Acts, as Medicaid programs are funded by both federal and state monies

COVID-19 fraud when New York government money is used

Medicaid fraud committed by doctors, hospitals and other types of medical care facilities

Unnecessary medical procedures billed to Medicaid

Illegal marketing of drugs by pharmaceutical companies

Mortgage & Banking examples –

Bankers who commit financial fraud or submit fraudulent claims based on wrongful foreclosures

Taxes & Other Underpayment to New York governmental entity examples –

New York is the first and current only state in the U.S. that allows whistleblowers to file a whistleblower lawsuit against individuals for violating state tax laws, when the individual’s income is $1 million or more and damages that exceed $350,000. Contrarily the federal False Claims Act excludes tax fraud and whistleblowers must pursue federal tax fraud claims separately through the IRS whistleblower reward law.

Also a reverse false claims action can occur when embezzlers knowingly make a false statement in order to avoid having to pay the government when payment is otherwise due

Monies spent or owed to the New York including state, local and municipal governments in obtaining contracts from that agency, or the willful failure to perform work under the contract

If you’ve been witness to any violation of New York State False Claims Act law, you should consider speaking with a whistleblower attorney who can help explain the law to you to see what kind of federal and state whistleblower rewards can be eligible to you.