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APPENDIX B EXAMPLES OF APPLICABLE STATE FALSE CLAIM STATUTES States False Claims Statute Reference Summary of False Claims Statute Alaska Alaska Statute § 36.30.687 Misrepresentations and Fraudulent Claims A person who makes or uses in support of a contract claim under this chapter, a misrepresentation, or who practices or attempts to practice fraud, at any stage of proceedings relating to procurement of a contract controversy under this chapter forfeits all claims relating to that procurement or contract; and is liable to the state for reimbursement of all sums paid on the claim, for all costs attributable to review of the claim, and for a civil penalty equal to the amount by which the claim is misrepresented. Additionally, there is a six year statute of limitations after discovery of misrepresentation, fraud, or attempted fraud. Arizona Ariz. Rev. Stat. § 47-9527 Unauthorized records; material misstatements, false claims; liability; special action; damages; violation; classification A person who knows or has reason to know that the record contains a material misstatement or false claim is liable to a debtor, a consumer obligor, a person named as debtor or the owner or holder of collateral affected by the record for the sum of at least $500 dollars or for treble the actual damages caused by the record, whichever is more, and reasonable attorney fees and costs of the action, if person who causes record to be filed or recorded willfully refuses to terminate or correct record within 20 days after date of written request from debtor. This is a class 1 misdemeanor. California California Govt. Code § 12650-56-False Claims Act Any person who knowingly presents or causes to be presented to an officer or employee of state 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; or conspires to defraud the state or political subdivision by getting false claim allowed or paid by state or political subdivision shall be liable to the state or to the political subdivision for 3 times the amount of damages which the state political subdivision sustains because of the act of that person. A person who commits any of the above acts shall also be liable to the state or to the political subdivision for the costs of a civil action brought to recover any of the penalties or damages, and may be liable for civil penalty up to $10,000 for each false claim. The AG will investigate violations under this section and may bring civil action against violator. The prosecuting authority may also intervene and bring civil claim. A person may also bring civil action for violation of this article (qui tam action) for the person and either for the State of California in the name of the state if state funds involved, or for political subdivision, if political subdivision funds exclusively involved. Additionally, a civil action under § 12652 may not be filed more than 3 years after the date of discovery by the official of state charged with responsibility to act or, in any event, no more than 10 years after the date on which the violation of §12651 is committed. A-5
States False Claims Statute Reference Summary of False Claims Statute Delaware Delaware Code Annotated Title 6, § 1201-1209 Chapter 12- Delaware False Claims and Reporting Act 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; or 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; or conspires to defraud the Government by getting a false or fraudulent claim allowed or paid; shall be liable to the Government for a civil penalty of not less than $5,500 and not more than $11,000 for each act constituting a violation of this section, plus 3 times the amount of the actual damages which the Government sustains because of the act of that person. A person violating this subsection shall also be liable for the costs of a civil action brought to recover any such penalties or damages, including payment of reasonable attorneyâs fees and costs. The AG shall investigate suspected violations. A private civil action may be brought by any affected person, entity or organization on behalf of the party bringing suit and for the Government (qui tam). Civil action may not be brought more than 6 years after date violation committed; or more than 3 years after date facts material to action are known or reasonably known by official of Government charged to act; but in no event more than 10 years after date violation committed. DC District of Columbia False Claims Act § 2-308.14- False Claims Liability, Treble Damages, Costs and Civil Penalties; Exceptions. 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 shall be liable to the District for 3 times the amount of damages which the District sustains because of the act of that person; also liable to District for costs of a civil action and may be liable for civil penalty no less than $5,000 and not more than $10,000 for each false claim. The Corporation Council shall investigate. A qui tam plaintiff is allowed. When a qui tam plaintiff brings an action pursuant to this section, no other person may bring an action pursuant to this section based on the facts underlying the pending action. Florida Florida False Claims Act- § 68.081-68.09 If a person knowingly presents a false claim or conspires to submit false claim to an officer or employee of an agency, the violator is liable to the state for a civil penalty of not less than $5,000 and not more than $10,000 and for treble the amount of damages the agency sustains because of act or omission of that person. The Department of Legal Affairs investigates the violation. The Department of Financial Services may bring civil action if action arises from investigation by that Department and Legal Affairs has not filed action. No proof of specific intent to defraud is required. Innocent mistake shall be a defense to an action under this act. Qui tam action is also allowable. Statute of Limitations: No more than 5 years after date on which violation committed; or more than 2 years after date material facts reasonably should have been known by state official, but in no event more than 7 years after date violation committed. Hawaii Haw. Rev. Stat. § 661-21 to 29- Qui Tam Actions or Recovery of False Claims to the State Notwithstanding § 661-7 to the contrary, 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, shall be liable to the State for a civil penalty of not less than $5,000 and not more than $10,000, plus 3 times the amount of damages that State sustains. The AG shall investigate violation. Proof is preponderance of evidence. Statute of limitations is 6 years after false claim discovered. Qui tam action is allowable. A-6
States False Claims Statute Reference Summary of False Claims Statute Illinois Illinois Whistleblower Reward and Protection Act â740 Ill. Comp. Stat. § 175/1-8 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, shall be liable to the state for a civil penalty of not less than $5,000 and not more than $10,000 per violation, plus 3 times the amount of damages, including consequential damages, that the state sustains because of the act of that person. Qui tam action is allowed. Massachusetts Mass. Gen. Laws Chapter 12 § 5(A âO) False Claims 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, shall be liable to the commonwealth or political subdivision for a civil penalty of not less than $5,000 and not more than $10,000 per violation, plus 3 times the amount of damages, including consequential damages, that the commonwealth or political subdivision sustains because of the act of that person. They shall also be liable for the expense of any civil action brought to recover any such penalty or damages, including reasonable attorney fees. Maine Me. Rev. Stat. Ann.- Title 22, § 15- Civil Liability of Persons Making False Claims Any person, firm, association, partnership, corporation or other legal entity who makes, causes or presents for payment or approval any claim upon or against the department or upon any funds administered by the department, knowing such claim to be false fictitious or fraudulent or who makes false written statement or enters into agreement or conspiracy to defraud the department by obtaining payment or approval for false, fictitious, or fraudulent claim, shall in addition to any criminal liability that may be provided by law, be subject to a civil suit by this State for recovery of civil penalties to include: restitution (for all excess benefits and payments); payment of interest (on amount of excess benefits or payments); payment of civil penalties (3 times the a mount of excess, but not less than $2,000 for each false claim, whichever is greater; cost of suit, cost of investigation, and attorneyâs fees. Minnesota Minn. Stat. § 609.455- Permitting False Claims Against Government and § 609-465- Presenting False Claims to Public Officer or Body § 609.455--A public officer or employee who pays any claim or demand made upon state which he knows is false or fraudulent in whole or part, may be sentenced to imprisonment for not more than 5 years or to payment of a fine not more than $10,000 or both. §609.465âWhoever, with intent to defraud, presents a claim or demand, with knowledge that it is false in whole or part, for payment is guilty of an attempt to commit theft of public funds and may be sentenced accordingly. Mississippi Miss. Code Ann. §97- 7-10- False representations to Defraud Government Whoever, with intent to defraud the state or any department, agency, office, board, commission, county, municipality, knowingly and willfully falsifies, conceals, or covers up by trick, scheme or device a material fact, or makes any false, fictitious, or fraudulent statement or entry shall, upon conviction, be punished by a fine of not more than $10,000 or by imprisonment for not more than 5 years or by both. Montana Mont. Code Ann. § 17-8-231 And Mont. Code Ann. § 7- 6-4311 A person who knowingly presents or causes to be presented a false, fictitious, or fraudulent claim for allowance or payment to any state agency or its contractors forfeits the claim, including any portion that may be legitimate, and in addition is subject to a penalty is not to exceed $2,000 plus double the damages sustained by the state as a result of the false claim, including all legal costs. The forfeiture and the penalty may be sued for in the same suitable the damages sustained by the state as a result of the false claim, including all legal costs. A person who knowingly presents or causes to be presented a false, fictitious, or fraudulent claim for allowance or payment to any city or town or its contractors forfeits the claim, including any portion that may be legitimate, and in addition is subject to a penalty is not to exceed $2,000 plus double the damages sustained by the city or town as a result of the false claim, including all legal costs. The forfeiture and the penalty may be sued for in the same suitable the damages sustained by the state as a result of the false claim, including all legal costs. A-7
States False Claims Statute Reference Summary of False Claims Statute Nevada Nevada Submission of False Claims to State or Local Government â Chapter 357: NRS §357.010- 357.250) A person who with or without specific intent to defraud, 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, shall be liable for 3 times the amount of damages sustained by the state or political subdivision, for the costs of a civil action brought to recover damages and a civil penalty of not less than $2,000 and not more than $10,000 for each act. A private plaintiff may maintain an action on his own account and that of the state if money, property or services provided by the state or political subdivision, or both are involved. Statute of Limitations- no more than 3 years after the date of discovery of the fraudulent activity by the AG or more than 5 years after fraudulent activity occurs, whichever is earlier. New Hampshire New Hampshire False Claims Act §167:61b 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, shall be liable to the state for a civil penalty of not less than $5,000 and not more than $10,000 per violation, plus 3 times the amount of damages that the state sustains because of the act of that person N. Carolina N.C. Gen. Stat. § 108A-70.13- 16 False Claim Procedures In action brought, the State is required to prove all essential elements of the cause of action, including damages, by the greater weight of evidence. A final judgment in favor of the State in any criminal proceeding charging fraud or false statements, whether by trial verdict or upon guilty or no lo contender plea, shall estop the defendant from denying the essential elements of the offense in any action which involves the same transaction as in the criminal proceeding. Treble and double damages and civil penalties shall not be assessed against provider if already assessed under same claim under the federal False Claims Act. Oklahoma Okla. Stat. tit. 21§ 142.16- False Claims Filing of a false claim for compensation shall constitute a misdemeanor, and shall be punishable by a fine not to exceed $1,000 or by imprisonment in the County jail for a term not to exceed 1 year, or by both. Utah Utah Code Ann. § 26- 20-1-13âFalse Claims Act False statement or false presentation means a statement or representation which is knowingly and willfully made if the person making the statement or representation has knowledge of the falsity thereof. Knowledge of past acts is not necessary to establish the fact that a false statement or representation was knowingly made. Criminal punishment is determined by the cumulative value of the funds or other benefits received or claimed in the commission of all violations of a similar nature, and not by each separate violation. A person violating this law will also be subject to civil penalties. Virginia Virginia Fraud Against Taxpayers Act Article 19.1--§ 8.01-216.1-8.01- 216.19 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, shall be liable to the Commonwealth for a civil penalty of not less than $5,000 and not more than $10,000 per violation, plus 3 times the amount of damages sustained by the Commonwealth. They shall also be liable for the costs of any civil action brought to recover any such penalty or damages. Wyoming Title 6: Chapter 3- Article 6- Fraud A contractor or subcontractor who purchases materials on credit and represents that they will be used in a designated building or improvement and who knowingly and with intent to defraud the seller uses the materials or allows them to be used in a building or improvement other than the one designated is guilty of a misdemeanor punishable by imprisonment for not more than 6 months, a fine of not more than $750 dollars, or both. A-8
