Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: January 3, 2013
The Firm
201-896-4100 info@sh-law.comNew York and New Jersey businesses that contract with the federal government should consider boosting compliance efforts related to the False Claims Ac. A new report suggests that running afoul of the FCA can be extremely costly.
In broad terms, the FCA imposes liability on any person who knowingly submits a false claim to the government or knowingly makes a false record or statement to get a false claim paid by the government. The FCA also imposes liability when false claims or statements are used to avoid having to pay money to the federal government. The law also contains qui tam provisions, which allow private persons to file suit for violations of the FCA on behalf of the government.
Although the FCA has been around since 1863, the government has recently stepped up enforcement and penalties. The Department of Justice recently announced that it secured $4.9 billion in settlements and judgments in civil cases under the FCA in the fiscal year ending Sept. 30, 2012. According to the DOJ, “This figure constitutes a record recovery for a single year, eclipsing the previous record by more than $1.7 billion, and brings total recoveries under the False Claims Act since January 2009 to $13.3 billion – which is the largest four-year total in the Justice Department’s history and more than a third of total recoveries since the act was amended 26 years ago in 1986.”
The DOJ report shows that whistleblower claims also reached record levels. A total of 647 qui tam suits were filed last fiscal year, resulting in the recovery of a record $3.3 billion. FCA liability was also concentrated in the health care and mortgage industries, both of which have been targeted by the Obama Administration’s anti-fraud efforts. With regard to health care fraud, recoveries exceeded $3 billion for the first time in a single fiscal year. Housing and mortgage fraud accounted for a record $1.4 billion.
The report signals that New York and New Jersey businesses, particularly those in the targeted industries, should conduct a thorough review of their FCA compliance activities. In addition, all companies contracting with the federal government should also make sure that they have procedures in place to properly handle whistleblower complaints before they result in costly qui tam lawsuits.
If you have any questions about the DOJ report or would like to discuss your company’s FCA compliance activities, please contact me, Jay Surgent, or the Scarinci Hollenbeck attorney with whom you work.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

The application of traditional federal securities laws to crypto assets continues to evolve. In some cases, the Securities and Exchange Commission (SEC) considers tokens and other digital assets to be securities. This makes them subject to federal securities law, including the Securities Act of 1933 and the Securities Exchange Act of 1934. This classification has […]
Author: Bryce S. Robins

While the New York City real estate market can be extremely competitive, moving too quickly often backfires. Before purchasing a condominium or cooperative in New York City, it is important to do you homework. Purchasing property in NYC can involve a dizzying number of legal issues. These include condo and co-op rules, rent restrictions, and […]
Author: Jesse M. Dimitro

Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]
Author: Bryce S. Robins

Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
Author: Angela A. Turiano

Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher

Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!