Defense counsel presents interesting arguments on New Jersey's False Claims Act
This week, Defense Counsel, Mark S. Olinsky of Sills Cummis & Gross P.C., wrote an article for the Metropolitan Corporate Counsel, titled "Defending Qui Tam Suits Under New Jersey's New False Claims". One may find it strange for a Plaintiff's firm to highlight an article written by a Defense firm. Howeverm, this article is well written, provides a good introduction of the history of the False Claims Act, and acknowledges the New Jersey False Claims Act that will go into affect on March 13, 2008. As previously mentioned on the Whistleblower Law Blog, New Jersey is among 20 states that have passed a state False Claims Act with qui tam whistleblower provisions similar to the Federal False Claims Act.
Mr. Olinsky reference to whistleblowers as "bounty hunters" is interesting, when he writes "New Jersey's new statute follows the federal version, and will invite suits by a new group of bounty-hunters - those involved with companies that do business with the State or "any contractor, grantee or other recipient of State funds."
At the end of the article, Mr.Olinsky provides a useful corporate tip when he writes "companies that do not already have in place a comprehensive compliance program - including training, anonymous reporting, and self-auditing - should make the implementation of such a program a top priority". The fines for a company found defrauding the government, can be expensive. As he points out, "The New Jersey False Claims Act provides for treble damages and civil penalties of at least $5,000 to $10,000 per false claim." Several other states already have this penalty in force.
Whistleblowers or "bounty hunters" as Mr. Olinsky calls them, are out there ready and willing to report a company for defrauding the government. They get to share in the government's recovery, anywhere from 15% - 30%, depending upon the government's intervention in the case. However, despite the money, most whistleblowers would prefer for the company to stop the wrong doing and acknowledge them for reporting the fraud to management. In several instances, the whistleblower loses their job, friends and life as they know it, because the large corporations vilify the whistleblower. Just ask two of the most well known whistleblowers, Dr. Peter Rost formerly of Pfizer or Cynthia Cooper formerly of Worldcom. They told what they believed was the truth about their organizations and their worlds changed dramatically. Although both have written books and are household names if you asked them, why they came forward, I am sure they will say "it was to tell the truth". We believe that whistleblowers are brave individuals that give up a lot to share the truth. A large corporation can pay defense firms millions of dollars to fight a qui tam claim and end up settling without admitting any wrongdoing. They can finance a well paid PR campaign to help with their public image, give millions to a worthy cause and life goes on as usual. At the end of the day, who stands to lose the most for coming forward? the brave whistleblower.
Click here and check out the article on the New Jersey False Claims Act by Mr, Mark Olinsky and make your own conclusion.
