False Claims Act Attorneys NYC

What Is the False Claims Act?

The False Claims Act (FCA) is a law that imposes liability on individuals or entities that knowingly submit, or cause the submission of, false or fraudulent claims for payment to government programs. This includes billing for services not rendered, inflating invoices, falsifying certifications, or misrepresenting eligibility for contracts, grants, or tax benefits. The law exists at both the federal and state levels. The federal FCA, which originated during the Civil War, has since been expanded to include whistleblower protections that allow private citizens to report fraud and share in any recovery. New York State and New York City have enacted similar statutes, which in some cases go further than federal law in terms of enforcement and scope.

NYC False Claims Act: Local Authority with Broad Reach

The New York City False Claims Act (NYC FCA), enacted in 2005, enables the City to recover triple damages for fraudulent claims involving City funds. Whistleblowers, referred to as relators, may bring what is called a qui tam action (a lawsuit on behalf of the City, literally meaning “in the name of the king”) and, under certain circumstances, retain up to 30% of any recovered amount. In 2012, the NYC FCA was amended to align more closely with New York State law. These amendments empowered the City to waive the “public disclosure bar” (explained below) in certain cases and increased the minimum whistleblower recovery percentage, strengthening the City’s enforcement efforts.

Types of Cases Prosecuted Under the FCA

FCA cases can arise in many industries where public funds are involved. Our firm represents clients in a broad range of cases, including:

Health Care Fraud: FCA cases often target Medicaid and Medicare fraud, including billing for services not provided, upcoding or overbilling, kickback arrangements, and falsified provider qualifications. Hospitals, clinics, home health providers, and individual practitioners can all face liability.

Government Contract Fraud: Businesses contracting with the City or State can be scrutinized for misrepresenting qualifications in a bid, charging for inferior or undelivered goods or services, engaging in collusion or kickback schemes, or failing to comply with contract terms. Even unintentional misrepresentations can lead to FCA exposure.

Grant and Procurement Fraud: Entities that apply for government grants or engage in procurement processes can violate the FCA by misusing grant funds, submitting false certifications or reports, or violating procurement rules. Non-profits and educational institutions are subject to these same standards.

Tax Fraud in New York State: New York is one of the few states that allows FCA actions for tax fraud. These cases arise when a target’s income or sales exceed $1 million annually and the alleged fraud exceeds $350,000. Whistleblowers who uncover fraudulent tax filings can report the misconduct and may be entitled to a portion of the recovered funds.

Qui Tam Lawsuits and Whistleblower Rights

A distinguishing feature of the FCA is the qui tam provision, which allows private citizens to file lawsuits on behalf of the government. The whistleblower, or relator, must have non-public knowledge of the fraud and follow strict procedural requirements when filing. If the government intervenes, it assumes responsibility for prosecuting the case. If the government declines, the relator may still proceed independently, although with certain limitations. Successful whistleblowers are entitled to 15–30% of any funds recovered.

There are also key restrictions. Under the public disclosure bar, if the fraud has already been publicly disclosed, the relator must be the “original source” of the information to proceed. The first-to-file rule bars later whistleblowers from pursuing cases based on the same facts. Additionally, government officials may not file FCA actions based on information obtained through their official duties.

Penalties Under the FCA

Violations of the FCA carry serious consequences. Offenders can face treble damages—three times the government’s losses—as well as civil fines ranging from $6,000 to $12,000 per false claim under New York law. Attorney’s fees and costs may also be awarded to the government or whistleblower. In the most egregious cases, criminal charges may be filed. Even minor or unintentional errors can escalate into significant legal issues if they are not addressed promptly and thoroughly.

How Romano Law Can Help

At Romano Law, we represent both whistleblowers and individuals or businesses accused of FCA violations. Our attorneys are skilled at investigating, advising, and advocating through every stage of the process.

For defendants, we can conduct internal investigations, respond to subpoenas or government inquiries, negotiate with prosecutors and regulators, defend against civil and criminal claims, and mitigate reputational and financial fallout. For whistleblowers, we evaluate the strength of a potential claim, guide them through the procedural requirements, preserve confidentiality, and work to maximize potential recovery while protecting against retaliation.

Speak With a New York FCA Attorney

If you or your business is under investigation or if you have uncovered fraudulent activity, call us today to schedule a consultation. Whether you are defending your company or pursuing a whistleblower claim, we are here to protect your rights and achieve the best possible outcome.

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