Source: http://falseclaimsactattorney.com/false-claims-act/state-fca-laws/maryland/
Timestamp: 2013-12-07 23:18:44
Document Index: 472582692

Matched Legal Cases: ['§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 1', '§ 1', '§ 2', '§ 2']

Whistleblowers with knowledge of fraud on Maryland medical assistance funds may bring suit on the state’s behalf and share in the recovery, under the Maryland False Health Claims Act which was first enacted in 2010. Under Md. Health-General Code § 2-602(a) of the Act, an individual may face civil liability for knowingly presenting or causing to be presented a false or fraudulent claim, conspiring to do so, or engaging in other fraudulent activity specified by law.
The Maryland False Health Claims Act is modeled on the federal False Claims Act, and cases brought under one statute are often brought in conjunction with claims under the other. However, unlike the federal law which applies to all false claims made to the federal government, the state law only applies to false claims relating to the state’s medical assistance programs. Violation of the Maryland False Health Claims Act exposes an individual for civil penalties up to three times the total damages to the state. Further, the Act imposes civil penalties up to $10,000 for each individual false claim in violation of the Act.
A private individual with direct knowledge of a Maryland False Health Claims Act violation is authorized to file a suit under the Act’s qui tam provisions. The qui tam relator, often referred to as a “whistleblower,” may proceed with the action regardless of whether the government chooses to intervene.
Whistleblowers involved in successful judgments or settlements may receive up to 25 percent of the civil penalties recovered by the state government. Under Maryland law, the state must choose to intervene for the Whistleblower’s action to be prosecuted.
Further, the Act provides the whistleblower with protection against employer retaliation, offering reinstatement, double back pay and benefits with interest, compensation for any special damages including attorneys’ fees, and punitive damages if the employee acts in furtherance of an investigation or action, discloses violations, provides information concerning allegations, or objects to a false claim action or initiated, testified, assisted, or participated in the investigation or action.
Persons with information about fraud on the state of Maryland are urged to preserve their rights by consulting an attorney and filing a case as soon as possible. A disclosure to the Maryland state government pursuant to Md. Health-General Code § 2-606(d)(2)(ii) may preserve a person’s rights as an original source of the information about fraud.
Md. Health-General Code §§ 2-601 to 2-611
2-601.
(b)(1) “Claim” means a request or demand, under a contract or otherwise, for money or other property, whether or not the State has title to the money or property, that is:
(c) “Documentary material” includes:
(d) “Employee” means an individual who performs services:
(e) “Employer” means a person or group of persons who, acting directly or indirectly on behalf of another person or group of persons:
(f)(1) “Knowing” or “knowingly” means, with respect to information and without requiring proof of specific intent to defraud, that a person:
(iii) Licenso-licensee relationship;
(i) “Provider” has the meaning stated in § 2-501 of this title.
(j) “Public body” means:
(k) “Retaliatory action” means:
(l)(1) “State health plan” means:
(m) “State health program” means the Medical Assistance Program, the Cigarette Restitution Fund Program, the Mental Hygiene Administration, the Developmental Disabilities Administration, the Alcohol and Drug Abuse Administration, the Family Health Administration, the Infectious Disease and Environmental Health Administration, or any other unit of the Department that pays a provider for a service rendered or claimed to have been rendered to a recipient.
(n) “Supervisor” means an individual within an employer’s organization who has the authority to:
2-602.
(5)(i) Be authorized to make or deliver a receipt or other document certifying receipt of money or other property used or to be used by the State under a State health plan or a State health program; and
(b)(1) A person who is found to have violated subsection (a) of this section is liable to the State for:
(c)(1) In determining the appropriate amount of fines and damages under subsection (b) of this section, the court shall consider:
(d) The penalties provided in subsection (b) of this section are in addition to any criminal, civil, or administrative penalties provided under any other State or federal statute or regulation.
(a) If the State finds that a person has violated or is violating § 2-602(a) of this subtitle, the State may file a civil action in a court of competent jurisdiction within the State against the person.
(b) In filing a civil action under this section, the State may seek:
(a)(1)(i) A person may file a civil action on behalf of the person and the State in a court of competent jurisdiction within the State against a person who has acted or is acting in violation of § 2-602(a) of this subtitle.
(3)(i) The person shall serve on the State a copy of the complaint and a written disclosure of substantially all material evidence and information that the person possesses, in accordance with the provisions of Title 2 of the Maryland Rules for serving process on the State.
(4)(i) For good cause shown, the State may move the court for extensions of the time during which the complaint remains under seal under paragraph (3)(ii)1 of this subsection.
(5)(i) The defendant may not be required to answer a complaint filed under this section until after the complaint is:
(b)(1) If the State intervenes and proceeds with the action under subsection (a)(6)(i) of this section:
(2)(i) During an investigation by the State conducted either independently or in conjunction with a civil action filed under this subtitle, the Attorney General shall have the same rights of discovery as a civil litigant in the circuit court under Title 2, Chapter 400 of the Maryland Rules.
(3)(i) Notwithstanding the objections of the person initiating the action, the State may elect at any point to withdraw its intervention as a party to the action.
(c)(1) Instead of proceeding with a civil action filed under this subtitle, the State may pursue any alternative remedy available to the State, including any appropriate administrative proceeding to determine a civil money penalty.
(3)(i) A finding of fact or conclusion of law made in any alternative proceeding that has become final shall be conclusive on all parties to an action filed under this subtitle.
(d)(1) On a showing in camera by the State that certain actions of discovery by the person initiating the action would interfere with the State’s investigation or prosecution of a criminal or civil matter arising out of the same facts, the court may stay the discovery for a period of not more than 60 days.
2-605.
(a)(1) If the State intervenes and proceeds with an action filed under § 2-604 of this subtitle and the State prevails, the court shall award the person initiating the action an amount that is:
(2)(i) If the court finds that the action is based primarily on disclosures of specific information relating to allegations or transactions in a criminal, civil, or administrative hearing, in a legislative or administrative report, hearing, audit, or investigation, or from the news media, the court may make an award to the person initiating the action that:
(4)(i) In addition to the amount provided under paragraphs (1) and (2) of this subsection, a court may award the person initiating the action:
(b)(1) If a court finds that the action is initiated by a person who planned and initiated or otherwise deliberately participated in the violation on which the action was based, the court may, to the extent it considers appropriate, reduce the share of the proceeds of the action that the person otherwise would have received under this section.
(3)(i) If the person initiating a civil action under § 2-604 of this subtitle is convicted of criminal conduct arising from the person’s participation in the violation on which the action was based prior to a final determination of the action, the person:
2-606.
(a) No court in this State shall have jurisdiction over an action filed under § 2-604 of this subtitle against any member of the Legislative Branch or the Judiciary of the State, any member of the Governor’s Executive Council, the Attorney General, the Comptroller, or the State Treasurer if the action is based on evidence or information known to the State when the action was filed.
(b) A civil action may not be brought under this subtitle by a person who is or was a public employee or public official if the allegations of the action are based substantially on:
(c) A person may not bring an action under § 2-604 of this subtitle that is based on allegations or transactions that are the subject of a civil suit or an administrative civil money penalty proceeding in which the State is already a party.
(d)(1) Except as provided in paragraphs (2) and (3) of this subsection, no court in this State shall have jurisdiction over an action filed under § 2-604 of this subtitle that is based on the public disclosure of allegations or transactions:
(e) The State is not liable for expenses that a person incurs in bringing an action under § 2-604 of this subtitle.
(f) A person who is or was employed by the State, a local government, or any other political subdivision of the State as an auditor, investigator, attorney, financial officer, or contracting officer may not bring an action under § 2-604 of this subtitle that is based on allegations or transactions that the person discovered or learned of while acting in the person’s capacity as an auditor, investigator, attorney, financial officer, or contracting officer for the State, local government, or other political subdivision of the State.
2-607.
(a) A person may not take a retaliatory action against an employee, contractor, or grantee because the employee, contractor, or grantee:
(b)(1) An employee, contractor, or grantee may file a civil action against a person other than a supervisor in State government, an appointing authority in State government, or the head of a principal unit in State government if the person takes a retaliatory action against the employee, contractor, or grantee in violation of subsection (a) of this section.
(c) This section does not apply to an employee as defined in § 1-501 of the Health Occupations Article or a State employee.
(d)(1) An employee as defined in § 1-501 of the Health Occupations Article who is subject to retaliatory action in violation of subsection (a) of this section may file a civil action under Title 1, Subtitle 5 of the Health Occupations Article.
2-608.
(a) A civil action filed under this subtitle may not be filed after the later of:
(b) A civil action may be filed under this subtitle for activity that occurred prior to October 1, 2010, if the limitations period under subsection (a) of this section has not lapsed.
(c) If the State elects to intervene and proceed with an action brought under this subtitle, the State, through the office of the Attorney General, may:
(d) To the extent that the claim of the State arises out of the conduct, transactions, or occurrences set forth, or attempted to be set forth by a person, a State pleading relates back to the filing date of the complaint of the person who originally brought the action.
(e) In an action filed under this subtitle, all essential elements of the cause of action, including damages, shall be proven by a preponderance of the evidence.
(f) Notwithstanding any other provision of law or rule of procedure or evidence in the Maryland Rules, a final judgment rendered in favor of the State in any criminal proceeding charging fraud or false statements, whether on a verdict after trial or on a plea of guilty or nolo contendere, shall stop the defendant from denying the essential elements of the offense in any action filed under this subtitle that involves the same act, transaction, or occurrence as in the criminal proceeding.
2-610.
(a) Any remedy provided under this subtitle is in addition to any other appropriate legal or equitable relief provided under any other applicable State or federal statute or regulation.
(b)(1) The State shall make all reasonable efforts to coordinate any investigation of an alleged violation under this subtitle with any investigation conducted by the federal government involving the same violation.
(c) The Comptroller shall deposit any civil penalty or damages collected under this subtitle in the General Fund of the State.
(d) The Department or the Inspector General of the Department may adopt regulations to carry out the provisions of this subtitle.
(a) Beginning October 1, 2010, the Inspector General of the Department and the Director of the Medicaid Fraud Control Unit in the Office of the Attorney General shall report annually to the General Assembly, in accordance with § 2-1246 of the State Government Article, the following information for the previous fiscal year:
(b) Unless the action is under seal in accordance with § 2-604 of this subtitle, for each civil action reported under subsection (a)(1) or (2) of this section, the report shall state: