Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_15-cv-01188/USCOURTS-cand-3_15-cv-01188-1/pdf.json

Nature of Suit Code: 375
Nature of Suit: False Claims Act
Cause of Action: 31:3729 False Claims Act

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STIPULATION FOR ENLARGEMENT OF TIME TO ELECT TO DECLINE OR INTERVENE 

CV 15-1188 EDL

KAMALA D. HARRIS

Attorney General of California

FREDERICK W. ACKER

Supervising Deputy Attorney General

SUNEETA D. FERNANDES

Deputy Attorney General

State Bar No. 257772

455 Golden Gate Avenue, Suite 11000

San Francisco, CA 94102-7004

Telephone: (415) 703-1507

Fax: (415) 703-1234

E-mail: Suneeta.Fernandes@doj.ca.gov

Attorneys for the State of California

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN FRANCISCO DIVISION

UNITED STATES OF AMERICA, and 

STATE OF CALIFORNIA, ex rel. 

DEBORAH CULLEN,

Plaintiff and Relator,

v.

ASSOCIATION OF BEHAVIOR 

CONSULTANTS, WILLIAM J. PALYO,

and DOES I-20.

Defendants.

CASE NO.: CV 15-1188 EDL

STIPULATION AND REQUEST FOR 

ENLARGEMENT OF TIME TO ELECT 

OR DECLINE TO INTERVENE; 

[PROPOSED] ORDER

FILED UNDER SEAL

The State of California and Deborah Cullen, as Relator, through their undersigned counsel, 

hereby stipulate and request that the Court enlarge until August 1, 2016 the period during which 

the State of California may elect to intervene in the above-captioned qui tam action or to notify 

the Court that they decline to do so, and during which the complaint and other filings shall remain 

under seal.

1. This application is being filed ex parte pursuant to Civil L.R. 7-10, the Federal FCA, 

31 U.S.C. §§ 3729-3733, and the California False Claims Act (“CFCA”), Cal. Gov’t Code §§ 

12650 – 12656, and is not being served on Defendants because the matter currently remains under 

 __________

Case 3:15-cv-01188-JCS Document 12 Filed 01/29/16 Page 1 of 4
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STIPULATION FOR ENLARGEMENT OF TIME TO ELECT TO DECLINE OR INTERVENE 

CV 15-1188 EDL

seal pursuant to the FCA, the CFCA, and order of this Court. This filing is being served on the 

Relator.

2. This action was filed on March 12, 2015 under the qui tam provisions of the Federal 

FCA and the CFCA. Among other things, these provisions authorize private parties (known as 

relators) to file lawsuits alleging false claims violations on behalf of the United States (31 U.S.C. 

§3730(b)) and the State of California (Cal. Gov’t Code § 12652(c)).

3. In this action, the relator alleges that Defendant Association of Behavior Consultants, 

Inc. (“ABC”), which allegedly provides behavior intervention for children with development 

disabilities, and Declarant William J. Palyo, ABC’s chief executive officer and principal, 

defrauded the United States of America and the State of California, by knowingly presenting, or 

causing to be presented, to one or more officers or employees of the United States of America and 

the State of California, false and fraudulent claims for approval or payment, with an implied 

certification of compliance with all eligibility laws, in contravention of the federal FCA and the 

CFCA.

4. Under 31 U.S.C. § 3730(b)(2) and Government Code § 12652(c)(2), a qui tam

complaint shall remain under seal for 60 days and shall not be served on the defendant until the

court so orders. Before a qui tam complaint in unsealed and served upon the defendant, the State 

of California must elect whether it will intervene in and assume prosecution of the action or, 

instead, elect to decline intervention and permit the relator to carry on with the action on behalf of 

the government. Cal. Gov’t Code § 12652(c)(6)(B). The qui tam provisions of the CFCA 

expressly contemplate that motions for extensions of the 60-day period will be permitted upon a 

showing of “good cause.” Cal. Gov’t Code § 12652(c)(7)(C). 

5. Relator completed service of her written disclosure of material evidence on the 

United States on or about February 23, 2015, and completed service of her Complaint on or about 

March 31, 2015. On that basis, the original seal was set to expire on June 1, 2015.

6. On May 8, 2015, the United States filed a Stipulation and Request for Enlargement of 

Time to Elect or Decline to Intervene. The Court granted the request and ordered that the case 

Case 3:15-cv-01188-JCS Document 12 Filed 01/29/16 Page 2 of 4
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STIPULATION FOR ENLARGEMENT OF TIME TO ELECT TO DECLINE OR INTERVENE 

CV 15-1188 EDL

remain under seal until February 1, 2016 in order to permit the United States and the State of 

California to complete their investigations.

7. The State of California continues to diligently investigate this case but needs more 

time to organize and conduct a thorough investigation in order to make an informed intervention 

decision. To date it has conducted interviews of the relator and other witnesses with relevant 

information. It also is in the process of gathering and reviewing relevant information and 

documents. The State of California will seek records from state agencies with potentially relevant 

information and may conduct additional witness interviews. Thereafter, the State of California 

will determine a plan for further investigation, if appropriate.

8. Accordingly, the State of California seeks a six-month extension of the seal and 

intervention deadlines in the present case until August 1, 2016. If the extension is granted, the 

State of California will continue to diligently investigate Relator’s allegations. Counsel for the 

State of California has conferred with Relator’s counsel regarding this extension and confirmed 

that Relator does not object to this request.

Dated: January 28, 2016 Respectfully submitted,

KAMALA D. HARRIS

Attorney General of California

/s/ Suneeta D. Fernandes1_________ 

SUNEETA D. FERNANDES

Deputy Attorney General

Attorneys for the State of California

Dated: January 28, 2016 BARTLEY LAW OFFICES

/s/ Daniel R. Bartley_________ 

DANIEL R. BARTLEY

Attorneys for Relator

 

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I, Suneeta Daisy Fernandes, hereby attest, in accordance with the Civil L.R. 5(i)(3), the 

concurrence in the filing of this document has been obtained from the other signatory listed here.

Case 3:15-cv-01188-JCS Document 12 Filed 01/29/16 Page 3 of 4
1 [PROPOSED] ORDER

2 IT IS HEREBY ORDERED THAT: 

3 1. The State of California shall have up to and including August 1, 2016, to inform 

4 this Court of its decision whether to intervene in this matter. 

5 3. All pleadings and other documents filed in this action shall remain under seal until 

6 further order of this Court. 

7 

8 IT IS ORDERED. 

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10 Dated: January 29, 2016 

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HON. ELIZABETH D. LAPORTE 

United States Magistrate Judge 

STIPULATION FOR ENLARGEMENT OF TIME TO ELECT TO DECLINE OR INTERVENE

CV 15-1188 EDL 

Case 3:15-cv-01188-JCS Document 12 Filed 01/29/16 Page 4 of 4