Greenlee’s False Claims Bill Passes Council
January 28 2010 - Councilman Bill Greenlee's proposed ordinance is modeled on the federal False Claims Act, designed to fight fraud against the government, primarily in contracting. It provides an incentive for private citizens to help the city fight fraud by coming forward, if they have knowledge of fraudulent claims made with the city. Under the bill, the private person would file a proposed civil complaint with the city. If that complaint results in litigation or a settlement with a monetary award to the city, the person who filed the complaint may be awarded a percentage of any proceeds recovered by the city. The percentages could range from 10 to 30 percent of the proceeds depending on the level of participation of the person. Under the bill, the city would be able to recover up to three times the amount of damages it has sustained as a result of the false claim.
Procedurally, the City Solicitor may choose to file a lawsuit on her own or she may enter into an agreement with and designate the private person (or his attorney) who filed the complaint to file a lawsuit in the city’s name. She could also decline to bring a lawsuit. If the private person is designated to bring the action, the city would still maintain control over the litigation and for example, would be able to move to dismiss or settle the action without the consent of the private party.
The bill also provides whistle blower protection for any person who is discharged or otherwise discriminated against in his or her employment because of legally coming forward with respect to the false claim.
Other cities that have enacted similar legislation are Chicago, New York City, Washington DC and San Pablo California.
January 28 2010 - Councilman Bill Greenlee's proposed ordinance is modeled on the federal False Claims Act, designed to fight fraud against the government, primarily in contracting. It provides an incentive for private citizens to help the city fight fraud by coming forward, if they have knowledge of fraudulent claims made with the city. Under the bill, the private person would file a proposed civil complaint with the city. If that complaint results in litigation or a settlement with a monetary award to the city, the person who filed the complaint may be awarded a percentage of any proceeds recovered by the city. The percentages could range from 10 to 30 percent of the proceeds depending on the level of participation of the person. Under the bill, the city would be able to recover up to three times the amount of damages it has sustained as a result of the false claim.
Procedurally, the City Solicitor may choose to file a lawsuit on her own or she may enter into an agreement with and designate the private person (or his attorney) who filed the complaint to file a lawsuit in the city’s name. She could also decline to bring a lawsuit. If the private person is designated to bring the action, the city would still maintain control over the litigation and for example, would be able to move to dismiss or settle the action without the consent of the private party.
The bill also provides whistle blower protection for any person who is discharged or otherwise discriminated against in his or her employment because of legally coming forward with respect to the false claim.
Other cities that have enacted similar legislation are Chicago, New York City, Washington DC and San Pablo California.