California False Claims Act

Fraud against the government wastes taxpayer dollars and undermines essential public programs. The California False Claims Act (CFCA) is a powerful tool for combating fraud and holding accountable those who seek to defraud the state or local governments. At KAASS LAW, we commit to protecting the public interest and pursuing justice against those who engage in fraudulent activities. As a result, the following will navigate an overview of the CFCA. As a result, we will be explaining its key provisions, the types of fraud it covers, and how individuals can play a role in exposing fraud against the government. We strive for our readers and clients to stay informed! 

What Is the California False Claims Act (CFCA)?

The California False Claims Act (CFCA) is a law which provides civil penalties for business entities or individuals who commit certain forms of theft, embezzlement or fraud with respect to state or local government funds. CFCA allows a public entity to recover damages from any entity or person that knowingly presents a false claim for any payment or approval.

Elements of Presenting a False Claim

According to CACI 4800, the plaintiff must be able to prove all the following elements to establish the claim:

• Defendant knowingly presented or caused to be presented a fraudulent or false claim to the public entity for payment or approval.
• The defendant’s false or fraudulent claim was material to the public entity’s decision to pay out money to the defendant.

Violation of the California False Claims Act

Here is the list of some actions which constitute a violation of CFCA

• Presenting a false claim for payment
• Using or making false or fraudulent statements regarding the false claim
• Conspiring to violate the California False Claims Act
• Delivering less than bargained for to the government
• Providing or making false receipts
• Making fraudulent purchases
• Misrepresenting to decrease an obligation to pay the government

What Is Considered to Be a Claim?

For purposes of CFCA, a “claim” means a request for money, services, or property that will be provided directly or indirectly by the California state government or a local government.

Knowingly Presenting a False or Fraudulent Claim

With respect to information about the claim, “knowingly “means that:

• The defendant had actual knowledge that the information in the claim was false.
• The defendant acted in deliberate ignorance of the falsity or truth of the information.
• The defendant acted in reckless disregard for the falsity or truth of the information.

To establish the claim, the plaintiff doesn’t have to prove the specific intent of defrauding.

“Material” means that the claim had a tendency to influence, or was capable of influencing, the payment or receipt of money, services, or property on the claim.

Inadvertent False Claims

The CFCA imposes an additional legal responsibility for reporting false claims if a person has inadvertently received a benefit from a false claim, such as an accidental overpayment that goes unreported.

Recoverable Damages under CFCA

In case the defendant is found guilty in violation of the California False Claims Act, they will have to pay:

• The triple amount of loss that his actions caused to the government
• The total cost of the litigation to enforce the CFCA
• A civil penalty of between $5,000 and $11,000 for each violation.

Under certain circumstances, such as self-reporting within 30 days or full cooperation, the penalties may have a reduction.

Statute of Limitations for CFCA Claims

Under California law, the CFCA must be before the later of the following dates:

• 6 years after the CFCA violation happened
• 3 years after the plaintiff knew or reasonably should have known about the violation or 10 years after it occurred

Qui Tam Lawsuits

The CFCA allows private citizens to file qui tam lawsuits on behalf of the government to expose fraud. Also, in qui tam lawsuit, the relator, or whistleblower, brings the action on behalf of the government and shares in any recovery.

The qui tam provisions of the CFCA:

• Encourage whistleblowers to come forward: By offering a financial incentive, the CFCA encourages individuals with knowledge of fraud to report it to the government.
• Protect whistleblowers from retaliation: The CFCA cannot allow employers to retaliate against employees who file qui tam lawsuits.
• Allow the government to intervene: The government has the option to intervene in a qui tam lawsuit and take over.
• Provide for relator’s share: The realtor would have to share the recovery if the government recovers funds.

Filing a Qui Tam Lawsuit

Filing a qui tam lawsuit under the CFCA is a complex process that requires careful consideration and legal expertise. Additionally, lawsuit must be filed under a seal to allow the government time to investigate the allegations. The relator must provide the government with all evidence and information they have about the alleged fraud.

Reporting Fraud: Your Role in Protecting Taxpayer Dollars

Fraud against the government wastes taxpayer dollars and undermines essential public services. As a result, the CFCA empowers individuals to play a crucial role in exposing fraud and holding accountable those who seek to defraud the government. We can guide you through understanding your rights and options under the CFCA, helping you take the necessary steps to protect the public interest. Also, If you’re looking to file a claim against the California Government, we’re ready to assist you!

Contact KAASS LAW today if you’re seeking legal advice or consultation.