§ 189 — Liability for certain acts

New York § 189

• Jurisdiction: New York
• Law STF: State Finance
• Art. 13: New York False Claims Act

Text

§ 189. Liability for certain acts. 1. Subject to the provisions of\nsubdivision two of this section, any person who:\n (a) knowingly presents, or causes to be presented a false or\nfraudulent claim for payment or approval;\n (b) knowingly makes, uses, or causes to be made or used, a false\nrecord or statement material to a false or fraudulent claim;\n (c) conspires to commit a violation of paragraph (a), (b), (d), (e),\n(f) or (g) of this subdivision;\n (d) has possession, custody, or control of property or money used, or\nto be used, by the state or a local government and knowingly delivers,\nor causes to be delivered, less than all of that money or property;\n (e) is authorized to make or deliver a document certifying receipt of\nproperty used, or to be used, by the state or a local government and,\nintending to defraud the state or a local government, makes or delivers\nthe receipt without completely knowing that the information on the\nreceipt is true;\n (f) knowingly buys, or receives as a pledge of an obligation or debt,\npublic property from an officer or employee of the state or a local\ngovernment knowing that the officer or employee violates a provision of\nlaw when selling or pledging such property;\n (g) knowingly makes, uses, or causes to be made or used, a false\nrecord or statement material to an obligation to pay or transmit money\nor property to the state or a local government; or\n (h) knowingly conceals or knowingly and improperly avoids or decreases\nan obligation to pay or transmit money or property to the state or a\nlocal government, or conspires to do the same; shall be liable to the\nstate or a local government, as applicable, for a civil penalty of not\nless than six thousand dollars and not more than twelve thousand\ndollars, as adjusted to be equal to the civil penalty allowed under the\nfederal False Claims Act, 31 U.S.C. sec. 3729, et seq., as amended, as\nadjusted for inflation by the Federal Civil Penalties Inflation\nAdjustment Act of 1990, as amended (28 U.S.C. 2461 note; Pub. L. No.\n101-410), plus three times the amount of all damages, including\nconsequential damages, which the state or local government sustains\nbecause of the act of that person.\n 2. The court may assess not more than two times the amount of damages\nsustained because of the act of the person described in subdivision one\nof this section, if the court finds that:\n (a) the person committing the violation of this section had furnished\nall information known to such person about the violation, to those\nofficials responsible for investigating false claims violations on\nbehalf of the state and any local government that sustained damages,\nwithin thirty days after the date on which such person first obtained\nthe information;\n (b) such person fully cooperated with any government investigation of\nsuch violation; and\n (c) at the time such person furnished information about the violation,\nno criminal prosecution, civil action, or administrative action had\ncommenced with respect to such violation, and the person did not have\nactual knowledge of the existence of an investigation into such\nviolation.\n 3. A person who violates this section shall also be liable for the\ncosts, including attorneys' fees, of a civil action brought to recover\nany such penalty or damages.\n 4. (a) This section shall apply to tax law violations only if: (i) the\nnet income or sales of the person against whom the action is brought\nequals or exceeds one million dollars for any taxable year subject to\nany action brought pursuant to this article; and (ii) the damages\npleaded in such action exceed three hundred and fifty thousand dollars;\nprovided that for purposes of applying paragraph (h) of subdivision one\nof this section to a tax law violation, the person is alleged to have\nknowingly concealed or knowingly and improperly avoided an obligation to\npay taxes to the state or a local government.\n (b) The attorney general shall consult with the commissioner of the\ndepartment of taxation and finance prior to filing or intervening in any\naction under this article that is based on a violation of the tax law.\nIf the state declines to participate or to authorize participation by a\nlocal government in such an action pursuant to subdivision two of\nsection one hundred ninety of this article, the qui tam plaintiff must\nobtain approval from the attorney general before making any motion to\ncompel the department of taxation and finance to disclose tax records.\n