2023 New York Laws › STF - State Finance › Article 13 - New York False Claims Act › 189 - Liability for Certain Acts.

§  189.  Liability  for  certain acts. 1. Subject to the provisions of
subdivision two of this section, any person who:
(a)  knowingly  presents,  or  causes  to  be  presented  a  false  or
fraudulent claim for payment or approval;
(b)  knowingly  makes,  uses,  or  causes  to be made or used, a false
record or statement material to a false or fraudulent claim;
(c) conspires to commit a violation of paragraph (a), (b),  (d),  (e),
(f) or (g) of this subdivision;
(d)  has possession, custody, or control of property or money used, or
to be used, by the state or a local government and  knowingly  delivers,
or causes to be delivered, less than all of that money or property;
(e)  is authorized to make or deliver a document certifying receipt of
property used, or to be used, by the state or a  local  government  and,
intending  to defraud the state or a local government, makes or delivers
the receipt without completely  knowing  that  the  information  on  the
receipt is true;
(f)  knowingly buys, or receives as a pledge of an obligation or debt,
public property from an officer or employee of  the  state  or  a  local
government  knowing that the officer or employee violates a provision of
law when selling or pledging such property;
(g) knowingly makes, uses, or causes to  be  made  or  used,  a  false
record  or  statement material to an obligation to pay or transmit money
or property to the state or a local government; or
(h) knowingly conceals or knowingly and improperly avoids or decreases
an obligation to pay or transmit money or property to  the  state  or  a
local  government,  or  conspires to do the same; shall be liable to the
state or a local government, as applicable, for a civil penalty  of  not
less  than  six  thousand  dollars  and  not  more  than twelve thousand
dollars, as adjusted to be equal to the civil penalty allowed under  the
federal  False  Claims Act, 31 U.S.C. sec. 3729, et seq., as amended, as
adjusted  for  inflation  by  the  Federal  Civil  Penalties   Inflation
Adjustment  Act  of  1990,  as amended (28 U.S.C. 2461 note; Pub. L. No.
101-410),  plus  three  times  the  amount  of  all  damages,  including
consequential  damages,  which  the  state  or local government sustains
because of the act of that person.
2. The court may assess not more than two times the amount of  damages
sustained  because of the act of the person described in subdivision one
of this section, if the court finds that:
(a) the person committing the violation of this section had  furnished
all  information  known  to  such  person  about the violation, to those
officials responsible  for  investigating  false  claims  violations  on
behalf  of  the  state  and any local government that sustained damages,
within thirty days after the date on which such  person  first  obtained
the information;
(b)  such person fully cooperated with any government investigation of
such violation; and
(c) at the time such person furnished information about the violation,
no criminal prosecution, civil  action,  or  administrative  action  had
commenced  with  respect  to such violation, and the person did not have
actual  knowledge  of  the  existence  of  an  investigation  into  such
violation.
3.  A  person  who  violates this section shall also be liable for the
costs, including attorneys' fees, of a civil action brought  to  recover
any such penalty or damages.
4. (a) This section shall apply to tax law violations only if: (i) the
net  income  or  sales  of the person against whom the action is brought
equals or exceeds one million dollars for any taxable  year  subject  to
any  action  brought  pursuant  to  this  article;  and (ii) the damages

pleaded in such action exceed three hundred and fifty thousand  dollars;
provided  that for purposes of applying paragraph (h) of subdivision one
of this section to a tax law violation, the person is  alleged  to  have
knowingly concealed or knowingly and improperly avoided an obligation to
pay taxes to the state or a local government.
(b)  The  attorney  general shall consult with the commissioner of the
department of taxation and finance prior to filing or intervening in any
action under this article that is based on a violation of the  tax  law.
If  the state declines to participate or to authorize participation by a
local government in such  an  action  pursuant  to  subdivision  two  of
section  one  hundred ninety of this article, the qui tam plaintiff must
obtain approval from the attorney general before making  any  motion  to
compel the department of taxation and finance to disclose tax records.