Friday, June 5, 2009

New York False Claims Act

If you have any knowledge or awareness of fraud being committed against New York State or New York City, you may be eligible to receive an award for reporting the fraud. Both New York State and New York City have enacted laws, each known as the False Claims Act, that allow private citizens to file a lawsuit on behalf of the State or City against any person or organization that is defrauding the government. If damages are recovered as a result of your lawsuit, you may be compensated for up to 30% of the amount recovered. In other words, you may be given a so-called “finders’ fee” for any money you help recover for New York State or New York City. You may also receive whistleblower protections that can protect you and your job from retaliation or punishment.

If you have any knowledge that a hospital, health insurance company, medical device or drug manufacturer, school, contractor or any other business or organization is defrauding New York State or New York City, contact the lawyers at Belluck and Fox so we can evaluate your case.

New York State enacted its False Claims Act in April 2007. The New York State law allows any private citizen to initiate a false claims action. Each false claim is subject to a civil penalty of up to $12,000 and damages at triple the value of the actual fraud. One action (for example, an action involving medical billing or overcharges by contractors) can involve hundreds or even thousands of claims. A person who initiates a false claims action that is successfully prosecuted is entitled to between 15 and 30% of the monies recovered by the State of New York. You can read the actual law here: New York False Claims Act

New York City enacted its False Claims Act in May 2005. New York City’s law states that any person or business that knowingly submits a false or fraudulent claim for payment to the City of New York is subject to a civil penalty and damages at triple the value of the actual fraud. The law allows the individual who reported and initiated the suit to recover between 15 and 30% of the damages if the case is successfully prosecuted. You can read the actual law on the New York City website: http://www.nyc.gov/html/law/html/fca/fca.shtml.

If you have information about illegal activities that have defrauded the New York City government, we can help. Contact Belluck and Fox, LLP and we will evaluate your claim.

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