The New York False Claims Act (“NYFCA”) was enacted in 2007. This state version of the Federal False Claims Act addresses the disclosure by citizens of corruption and fraudulent activities with respect to New York government entities. Any citizen with evidence of this activity may file a complaint and receive monetary compensation if money is recovered.
Qui Tam Suits
These suits are lawsuits filed by citizens under the NYFCA. They are initiated in secret to allow the government the opportunity to look into the fraud allegations.
The citizen making the complaint is called a Relator. He/she is filing the lawsuit on behalf of the government. The act also prohibits an employer from retaliating against a Relator for filing the qui tam claim.
The Act allows for recovery of triple the amount that was fraudulently obtained, and the citizen complainant may receive between 15% and 30% of the recovery amount.
Distinctions from the Federal False Claims Act
The NYFCA allows claims for violations of the New York tax code if the defendant has sales or a net income of at least $1 million and the damages are in excess of $350,000. The federal law has no such provision for Internal Revenue Code violations. While the federal act allows recovery of between $5,500 and $11,000 for each violation, New York’s law provides for treble damages and fines between $6,000 and $12,000 per violation. Additionally, the NYFCA has a 10 year statute of limitations and the federal act statute of limitations is six years. A Relator and his attorney may secretly withdraw his/her NYFCA case if the government decides not to intervene. However, this is not permitted under the federal law. Finally, the anti-retaliation provisions are stronger under the NYFCA than those under the federal act.
Private Qui Tam and Whistle Blower Lawyers
The Attorney General does not provide legal counsel in qui tam suits. However the law is complicated and the services of a practiced whistle blower attorney are vital. Granovsky & Sundaresh, PLLC are experienced New York Whistle Blower Attorneys, knowledgeable of NYFCA qui tam claims. Contact us to schedule a confidential consultation if you have information about government fraud or corruption.
If you have questions about the NYFCA, the experienced lawyers at Granovsky & Sundaresh PLLC can help you. Contact us today for a free initial consultation at 646.524.6001.