Delaware General Assembly

Signed 6/30/00

The General Assembly has ended, the current status is the final status.

4/11/00

DiLiberto

Reps. Brady, Cathcart, Ennis, D. Ennis, Ewing, Fallon, Houghton, Keeley, Mulrooney, Plant, Valihura, Viola, D.P. Williams
Sen. Henry, Sharp, Sokola, Winslow

AN ACT TO AMEND TITLE 6 OF THE DELAWARE CODE RELATING TO FRAUDULENT CLAIMS.

This Bill would protect the State taxpayers from people who submit false claims to try to defraud them. It also protects people who come forward with information about the fraud, and encourages them to report the wrongdoing. It will protect property (specifically including funds) of the Government from fraudulent claims, regardless of the particular form or function of the Govermment instrumentality upon which such claims were made. At the same time, the ‘original source’ provision of the Act prevents suits by latecomers seeking gain who had nothing to add to the fraud exposure. Another purpose is to provide restitution of money taken from Government by fraud. The double damages provision in addition to the specified sum is intended to ensure that Government is made completely whole. This bill reflects the historical reality that one of the least expensive and most effective means of preventing frauds on the State's Treasury is to make the perpetrators of them liable to actions by private parties. It applies to situations where an individual falsely convinces Delaware to pay out funds, or to pay out too much funds, and to situations where an individual fraudulently pays too little to the Government. The Bill covers not only acts that create loss to government, but also acts which cause government to pay out sums of money to claimants it did not intend to benefit. It contains qui tam provisions, which are meant to encourage those with knowledge of government fraud to come forward. These provisions provide private parties who would otherwise have no judicially cognizable interest with interest sufficient to give him or her or it standing to sue to enforce the law. It contains a whistle blower protection provision, which allows employees to feel more secure in reporting fraud to the Government. A "claim" refers to a demand for money or for some transfer of public property or disbursement of public funds. Each individual false payment demand under a Government contract which calls for numerous payments constitutes a "false claim" under this Act.

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Takes effect upon being signed into law

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