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NJ State and Federal False Claims Act

False Claims Act Lawsuits and Recoveries for Reporting Fraud Upon the Government

Both federal and state law provide compensation for those who discover and report on the government. The federal statute has been in existence for many years in the state of New Jersey has only recently passed a False Claims Act, in 2008.

The underlying concept of the False Claims Act is to provide bounties to individuals that discover fraud on the government and report it to the government. Specifically, lawsuits are filed reporting the fraud to the government and the government has an option to take over the case. If the government does not take over the case it belongs to the individual litigant.

As an example the State pursued a False Claims Act case against Accutest an environmental testing firm and recovered over two million dollars. The person who brought this claim and filed this lawsuit would receive a percentage of the recovery as set forth below:

In April 2013, former employee Koroush Vaziri field a qui tam action in U.S. District Court in New Jersey alleging the failure of Accutest to follow proper protocols in both its extraction laboratory and its laboratory for the analysis of semi-volatile organic compounds.

This is what was alleged in the lawsuit filed by the whistle blower.

There are many other areas where there have been recoveries against businesses ripping of the government as the justice department sets recoveries into the billions:

Justice Department Recovers Over $3.5 Billion From False Claims Act Cases in Fiscal Year 2015. Recoveries Exceed $3.5 Billion for Fourth Consecutive Year.

if you are aware of any individuals or businesses committing fraud upon the government either in the state government or the federal government contact The Law Office of Jonathan Rudnick LLC to determine what your rights and responsibilities in regard to this fraud. The federal and state False Claims Act provide bounties to those individuals reporting and acting upon those who are committing fraud upon the government.

Types of fraud

According to the DOJ, typical allegations in the health care sector include:

  • Marketing off-label uses not approved by the U.S. Food and Drug Administration;
  • Paying “kick-backs” to providers, wholesalers and pharmacies to induce purchases;
  • Inflating drug prices for reimbursement, and marketing the “spread” between reimbursement and cost;
  • Failing to accurately report the company’s best price in order to reduce rebates for pharmaceuticals owed to the Medicaid program.[2]

One very popular for false claims act cases is Medicaid and Medicare. In these cases it is not uncommon for doctors hospitals or other medical providers to false bill the government for services never rendered, double bill, not refund or other inappropriate or improper billing method. It is not uncommon for some worker in the officers aware of this fraud the doctors. There are numerous case for the medical providers doctors and pharmacies had individuals go to jail is a result of cheating the government. In short, not only are there civil penalties available to the government into those reporting the fraud but ultimately there can potentially be criminal ramifications or criminal impacts upon those who have been cheating the government.