FALSE CLAIMS FREE CASE EVALUATION: 1-800-632-1404
The Tennessee False Claim Act was enacted as an offshoot of the Federal False Claim Act signed into law in March 1863 and subsequently amended in 1986. The act lays down the fundamental basis for whistleblower lawsuits to highlight fraud committed against the government through false claims and to recover damages and penalties. In 1993, a separate Tennessee Medicaid False Claims Act was enacted to recover defrauded Medicaid or state healthcare money.
The original Tennessee False Claim Act was expanded in 2001 to cover all types of liability arising out of defrauds committed against the state. In 2012, the act was further amended to accommodate broad changes introduced through the federal legislation in 2009 and 2010.
Application of Tennessee False Claim Act
The Tennessee False Claim Act is applicable to any “deliberate or knowingly false or fraudulent claim to the government for payment or approval” within the state. According to legal provisions, “any false or fraudulent conduct, representation, or practice in order to procure anything of value directly or indirectly from the state or any political subdivision” imposes a liability to be prosecuted.
Any individual, company, association, organization, trust, business, or partnership incurs liability under the act for receiving state money, property, or service by making false claims.
Tennessee False Claim Act: Types of Fraud Covered
The following four types of frauds committed against the government result in liability under the Tennessee False Claim Act.
- Knowingly making a false claim for payment
- Using a false record to put a claim for payment
- Party to conspiracy to get a fraudulent claim approved
- Knowingly covering up, avoiding, or reducing the obligation to pay
In the last few years, a number of whistleblower lawsuits invoking the Tennessee False Claim Act have been filed in the state for
- Dishonest marketing practices by medical device manufacturers
- Wrong marketing and kickbacks to sale prescription drug
- Double billing
- Submitting false bills
- Supplying untested or inferior equipment
- Inappropriate medical procedure to seek higher reimbursement
- Defective testing or misleading test information
- Misrepresenting real values or hiding info
- Doctored records to show fictitious natural resource production
- Bribery to win kickback to get contracts or services
- Phantom billing
The Principle of Qui Tam
The principle of qui tam is an essential part of the Tennessee False Claim Act. It empowers any one to turn a whistleblower against his or her employer and file litigations against actions defrauding the government. Whistleblowers are awarded between 15 and 30 percent of the total settlement.
The act used the term “relator” in place of whistleblowers to allow any private person to file and pursue litigations on behalf of the state under the Tennessee False Claim Act.
Penalty and Damages
According to the Tennessee False Claim Act, a relator can file lawsuits when there is a fraud involving more than $500. It also specifies three types of penalties to be collected through civil action. A three-time penalty of the total amount of loss to the exchequer plus a civil penalty of at least $2,500 and the maximum of $10,000 is imposed for
- making false claim for approval or payment
- making or using doctored records for approval or payment
- involved in conspiracy to defraud the government
- making reduced disbursement of public money
- delivering false receipts
- illegal buying of debt or public property
- concealing money to be paid to the state
- being beneficiary of a false claim
- encouraging fraudulent practice
The court is empowered by the Tennessee False Claim Act to impose a penalty amounting to at least twice and a maximum of three times of the amount of damages incurred by the state without any penalty, if the person or organization responsible for fraud willingly cooperate with investigators and submit all necessary information within 30 days of the wrong committed and prior to any civil or criminal action is initiated.
Whistleblower Protection
TheTennessee False Claim Act provides for legal and financial security of whistleblowers. It even allows a realtor to proceed with the litigation through his own attorney and as the full party, if the prosecuting authority declines to go forward.
A part of the damages and penalties collected is awarded to the realtor, including between 15-25 percent of the total recovery depending on the amount of assistance provided by the relator. In some limited circumstances, a relator can be prohibited from recovery or receive less than 15%.
TheTennessee False Claim Act also prohibits an employer from “discharging, demoting, suspending, threatening, harassing, denying promotion, or discriminating in any manner against an employee for disclosing or furthering a false claims action.” The employer have to face penalty, such as payment of twice the back pay with interest and punitive compensation along with lawyer’s fee for violating the above stated protection guarantee under the false claim act.
Statute of Limitations
Any litigation filed under the Tennessee False Claim Act is subject to three-year statute of limitations from the date of discovery by state officials. It must be brought within 10 years of the act committed.
FOR FALSE CLAIMS ACT HELP, PLEASE CONTACT US.
We help whistleblowers on a contingency basis, meaning there is no fee charged for our work unless there is a recovery. We also front any and all expenses. No matter where you are located — we will represent you. We will come to you, you will not have to come to us. Attorneys in our firm and attorneys that we work with on Whistleblower, Qui Tam, False Claims Act cases have represented a host of persons making claims, for violations of federal tax law, Medicare law and more. For more information, please contact our team of whitsleblower and qui tam attorneys today, or visit our False Claims Act Litigation Source.
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Our offices will review potential false claims act cases in all fifty states, including Tennessee, Arkansas, Mississippi, Kentucky and Alabama.