Typical Claims under the New York False Claims Act

This year the State of New York will expend over one hundred twenty billion ($120,000,000,000.00) dollars, through all of its agencies and offices. 

Virtually any situation within which “the Government” (which includes the State of New York, or a County, City, Town, Village, School District or public benefit corporation) is paying someone money, or collecting money, can give rise to a claim under the State’s False Claims Act.

Some of the most typical types of claims are as follows:

A. Sales Fraud:  where an individual or private company contracts to sell goods or services to the Government, and defrauds the Government by:

Charging the Government for goods or services which were not provided.

Overcharging the Government for more goods or services than were actually provided.

Charging the State for defective goods, or goods other than what was required under a contract with the Government.

Selling the Government used equipment as new equipment.

Presenting broken or untested equipment as operational and tested.

Providing a false certification that a product meets specifications required by the Government.

Providing a false certification that products being supplied are being subjected to testing procedures in accord with Government requirements, when such testing had not been performed.

Providing a false certification that minority or female contractors are providing services, or are the true principals of the company or companies providing services, when they are not.

Submitting false service records or samples to show better than actual performance.

Mischarging the Government for labor or services expended on other matters.

Billing the Government for non-contract related activities.
Billing for services which were not reasonable or necessary, in frequency, duration, or at all.

Upcoding Employee Work – Billing the Government at rates for higher qualified or certified employees, for work that was actually performed by a lesser qualified or non-certified employee.

Upcoding Services/Goods - Billing the Government for a more expensive service or product than the one provided.

B. Procurement Fraud: Where an individual or private company provides false information or data to the Government in applying for any grant, to obtain a contract with, or to secure funding from, the Government.  Common examples include: providing false information to obtain a grant from the State, or setting up a shell company to bid on a Government contract which the true principals could not otherwise bid upon.

C. Misappropriation: When an individual or private company uses funds received from the Government for any purposes other than the specific purpose for which such funds had been given to them by the Government.

D. Noncompliance with Grant or Funding Guidelines: When an individual or business fails to comply with the restrictions which govern the permitted use, method and manner of expending monies they have received from the Government.

E. Evasion: When an individual or business provides false information or data to the Government to reduce or eliminate any required program contribution or the payment of any sums which might otherwise be due and owing to the State.

When an individual or business fails to disclose material information or data to the Government to reduce or eliminate any required program contribution or the payment of any sums which might otherwise be due and owing to the Government.

F. Retention of Overpayments: When an individual or business receives an overpayment of Government funds, and the individual or business fails to report the overpayment or excess to the Government.

These examples are, by no means, all inclusive, but are merely provided as illustrative of some of the common frauds which may serve as the basis for filing a claim under the New York State False Claims Act.