District of Columbia False Claims Act

<body bgcolor="white"> <div align="left"><table border="0" cellpadding="0" cellspacing="0" width="500"> <tr> <td colspan="2" valign="top"><p align="center"><a href="AF_frm.htm" target="_top">About the Firm</a> | <a href="fca_f.htm" target="_top">The False Claims Act</a> | <a href="wr_f.htm" target="_top">Whistleblower's reward</a> | <a href="caintr_f.htm" target="_top">Have a case?</a><a href="story_f.htm" target="_top"><br> Whistleblowers' stories</a> | <a href="resman_f.htm" target="_top">Resources</a> | <a href="what_f.htm" target="_top">What's new</a> </td> </tr> <tr> <td><font SIZE="4" COLOR="#333366">District of Columbia</font></td> <td valign="top"><img src="../../GIF/PC_url.GIF" width="143" height="14" align="right"></td> </tr> <tr> <td colspan="2"><br> <p align="center"><b>DISTRICT OF COLUMBIA FALSE CLAIMS ACT </b>. </p> <p><b>s 1-1188.7 Definitions. </b></p> <p>For purposes of ss 1-1188.7 through 1-1188.12, the term: <br> (1) "Claim" means any request or demand for money, property, or services made to any employee, officer, or agent of the District, or to any contractor, grantee, or other recipient, whether under contract or not, if any portion of the money, property, or services requested or demanded issued from, or was provided by, the District. <br> (2) "Fixed obligation" means an amount due the District by contract or by law. The term "fixed obligation" does not include a fine to be imposed by law until the fine has been assessed. <br> (3)(A) "Knowing" or "knowingly" means that a person, with respect to information, does any of the following: <br> (i) Has actual knowledge of the information; <br> (ii) Acts in deliberate ignorance of the truth or falsity of the information; or <br> (iii) Acts in reckless disregard of the truth or falsity of the information. <br> (B) Proof of specific intent to defraud is not required for an act to be knowing. <br> (4) "Person" means any natural person, corporation, firm, association, organization, partnership, business, or trust. </p> <p><br> . <b>s 1-1188.8 Treble damages, costs and civil penalties; exceptions. </b></p> <p>(a) Any person who commits any of the following acts shall be liable to the District for 3 times the amount of damages which the District sustains because of the act of that person. A person who commits any of the following acts shall also be liable to the District for the costs of a civil action brought to recover penalties or damages, and may be liable to the District for a civil penalty of up to $10,000 for each false claim for which the person: <br> (1) Knowingly presents, or causes to be presented, to an officer or employee of the District, a false claim for payment or approval; <br> (2) Knowingly makes, uses, or causes to be made or used a false record or statement to get a false claim paid or approved by the District; <br> (3) Conspires to defraud the District by getting a false claim allowed or paid by the District; <br> (4) Has possession, custody, or control of public property or money used or to be used by the District and knowingly delivers or causes to be delivered less property than the amount for which the person receives a certificate or receipt; <br> (5) Is authorized to make or deliver a certifying receipt of property used or to be used by the District and knowingly makes or delivers a receipt that falsely represents the property used or to be used; <br> (6) Knowingly buys, or receives as a pledge of an obligation or debt, public property from any person who lawfully may not sell or pledge the property; <br> (7) Knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease a fixed obligation to pay or transmit money or property to the District; <br> (8) Is a beneficiary of an inadvertent submission of a false claim to the District, subsequently discovers the falsity of the claim, and fails to disclose the false claim to the District; or <br> (9) Is the beneficiary of an inadvertent payment or overpayment by the District of monies not due and knowingly fails to repay the inadvertent payment or overpayment to the District. <br> (b) Notwithstanding subsection (a) of this section, the court may assess not more than two times the amount of damages which the District sustains because of the act of the person, and there shall be no civil penalty if the court finds all of the following: <br> (1) The person committing the violation furnished officials of the District or the federal government responsible for investigating false claims violations with all information known to that person about the violation within 30 days after the date on which the person first obtained the information; <br> (2) The person fully cooperated with any investigation by the District; and <br> (3) At the time the person furnished the District with information about the violation, no criminal prosecution, civil action, or administrative action had commenced with respect to the violation, and the person did not have actual knowledge of the existence of an investigation into the violation. <br> (c) Liability under this section shall be joint and several for any act committed by 2 or more persons. <br> (d) This section does not apply to any controversy involving an amount of less than $5,000 in value. For purposes of this section, the term "controversy" means any one or more claims submitted by the same person. <br> (e) This section does not apply to the following: <br> (1) Workers' compensation claims filed pursuant to Chapter 3 of Title 36. <br> (2) Unemployment compensation claims filed pursuant to Chapter 46 of Title 1; and <br> (3) Claims, records, or statements made pursuant to the District Tax Code as set forth in Title 47 of the District of Columbia Code. </p> <p><b><i>s 1-1188.9 Corporation Counsel investigations and prosecutions; powers of prosecuting authority; civil actions by individuals as qui tam plaintiffs;</i> jurisdiction of courts.</b> </p> <p>(a) The Corporation Counsel shall investigate violations under s 1-1188.8 involving District funds. If the Corporation Counsel finds that a person has violated or is violating the provisions of s 1-1188.8, the Corporation Counsel may bring a civil action against that person. <br> (b)(1) A person may bring a civil action for a violation of s 1-1188.8 for the person and either for the District or in the name of the District. The person bringing the action shall be referred to as the qui tam plaintiff. Once filed, the action brought by the qui tam plaintiff may be dismissed only with the written consent of the court, taking into account the best interest of the parties involved and the public purposes behind ss 1-1188.7 through 1- 1188.12. The Corporation Counsel shall be served with notice of proposed dismissal and shall have the opportunity to be heard. <br> (2) A complaint filed by a private person pursuant to this subsection shall be filed in the Superior Court in camera and may remain under seal for up to 120 days, unless the seal is extended by the court. No service shall be made on the defendant until after the complaint is unsealed. <br> (3) On the same day as the complaint is filed pursuant to paragraph (2) of this subsection, the qui tam plaintiff shall serve the Corporation Counsel by certified or registered mail, return receipt requested, with a copy of the complaint and a written disclosure of substantially all material evidence and information the person possesses. <br> (4) Within 120 days after receiving a complaint alleging violations involving District funds, the Corporation Counsel shall do either of the following: <br> (A) Notify the court that it intends to proceed with the action, in which case the seal may be lifted unless, for good cause shown, the court continues the seal; or <br> (B) Notify the court that it declines to take over the action, in which case the seal shall be lifted and the qui tam plaintiff shall have the right to conduct the action. <br> (5) Upon a showing of good cause, the Corporation Counsel may move the court for extensions of the time during which the complaint remains under seal. <br> (6) When a qui tam plaintiff brings an action under this subsection, no other person may bring a related action based on the facts underlying the pending action. <br> (c)(1) No person may bring an action under subsection (b) of this section against a member of the Council of the District of Columbia ("Council"), the District judiciary, or an elected official in the executive branch of the District, if the action is based on an event occurring during his or her term of office. <br> (2)(A) No person may bring an action under subsection (b) of this section based upon allegations or transactions in a criminal, civil, or administrative hearing, investigation, report, hearing, or audit conducted by or at the request of the Council, the Auditor, Inspector General, or allegations or transactions disclosed by the news media, unless the person bringing the action is an original source of the information. <br> (B) For purposes of subparagraph (A) of this paragraph, the term "original source" means an individual who has direct and independent knowledge of the information on which the allegations are based, who voluntarily provided the information to the District before filing an action based on that information, and whose information provided the basis or catalyst for the investigation, report, hearing, audit, or media disclosure which led to the public disclosure as described in subparagraph (A) of this paragraph. <br> (3) No person may bring an action under subsection (b) of this section if the allegations are based upon information learned by the person in the course of an internal investigation in preparation for, or in conjunction with, a voluntary disclosure to the District or federal government. <br> (4) No person may bring an action under subsection (b) of this section by or on behalf of a present or former employee of the District based upon information discovered during the course of his or her employment, unless that employee first in good faith exhausted internal procedures for reporting and seeking recovery of such falsely claimed sums through official channels, and unless the District failed to act on the information provided within a reasonable time. <br> (5) No member or employee of the Council of the District of Columbia, the Office of the Corporation Counsel, the Office of the Inspector General, the Office of the Auditor, or the Internal Affairs Department of the Metropolitan Police Department may bring an action under subsection (b) of this section based upon information discovered during the term of his or her employment. <br> (d)(1) If the District proceeds with the action, it shall have the primary responsibility for prosecuting the action. The qui tam plaintiff may continue as a party to the action, provided the qui tam plaintiff's work is neither duplicative of nor interferes with the prosecution of the action by the Corporation Counsel, and the qui tam action was proper under subsection (c) of this section. <br> (2)(A) The District may dismiss the action for good cause shown. <br> (B) The District may settle the action with the defendant, notwithstanding the objections of the qui tam plaintiff, if the court determines, after a hearing providing the qui tam plaintiff an opportunity to present evidence, that the proposed settlement is fair, adequate, and reasonable under all of the circumstances. <br> (e)(1) If the District elects not to proceed and the qui tam action was proper under subsection (c) of this section, the qui tam plaintiff shall have the same right to conduct the action as the Corporation Counsel would have had if he or she had chosen to proceed under subsection (b) of this section. Upon request, the District shall be served with copies of all pleadings filed in the action. <br> (2) Upon timely application, the court shall permit the District to intervene in an action with which it had initially declined to proceed. (f)(1) If the District proceeds with an action brought by a qui tam plaintiff under subsection (b) of this section, and the qui tam action was proper under subsection (c) of this section, the qui tam plaintiff shall, subject to paragraphs (3) and (4) of this subsection, receive at least 10% , but not more than 20% , of the proceeds of the judgment or settlement of the claim, taking into account the significance of the information, the role of the qui tam plaintiff in advancing the litigation, the scope of the qui tam plaintiff's involvement in the fraudulent activity, the qui tam plaintiff's attempts to avoid or resist such activity, and all other circumstances surrounding the activity. When it conducts the action, the Office of the Corporation Counsel shall receive 25% of the proceeds of the judgment or settlement of the claim, which funds shall be used to support its ongoing investigation and prosecution of false claims made against the District, subject to appropriations. <br> (2) If the District does not proceed with the action, the court shall award the qui tam plaintiff at least 25% , but not more than 40% , of the proceeds. The Court shall take into account the significance of the information, the role of the qui tam plaintiff in advancing the case to litigation, and the scope of, and response to, the employee's attempts to report and gain recovery of such falsely claimed funds through official channels. <br> (3) The portion of the recovery not distributed pursuant to paragraphs (1) and (2) of this subsection, inclusive, shall be paid to the District treasury. (4) For purposes of this section, the term "proceeds" includes civil penalties as well as double or treble damages as provided in s 1-1188.8. <br> (5) If the District or the qui tam plaintiff prevails or settles an action under subsection (c) of this section, the qui tam plaintiff shall receive an amount for reasonable expenses, including costs and attorneys fees. Costs and fees awarded against the defendant shall not be the responsibility of the District. <br> (6) If the District does not proceed with the action and the qui tam plaintiff conducts the action, the court may award to the defendant reasonable attorneys fees and expenses if the defendant prevails in the action and the court finds that the claim of the qui tam plaintiff was frivolous, vexatious, or brought solely to harass. <br> (g) The court may stay discovery if the Corporation Counsel shows that discovery would interfere with investigating or prosecuting of a criminal matter arising out of the same facts, regardless of whether the Corporation Counsel has pursued the criminal or civil investigation or proceedings with reasonable diligence, and any proposed discovery in the civil action will interfere with the ongoing criminal or civil investigation or proceedings. <br> (h) Upon a showing by the Corporation Counsel that unrestricted participation during the course of the litigation by the qui tam plaintiff would interfere with or unduly delay the Corporation Counsel's prosecution of the case, or would be repetitious, irrelevant, or harassment, the court may impose limitations on the qui tam plaintiff's participation, including the following: <br> (1) Limiting the number of witnesses the person may call; <br> (2) Limiting the length of the testimony of such witnesses;<br> (3) Limiting the person's cross-examination of witnesses; or <br> (4) Otherwise limiting the participation by the person in the litigation. <br> </p> <p><b>s 1-1188.10 Employer interference with employee disclosures; liability of employer; remedies of employee. </b></p> <p>(a) No employer, including the District of Columbia, shall make, adopt, or enforce any rule, regulation, or policy preventing an employee from disclosing information to a government or law enforcement agency or from acting in furtherance of a false claims action, including investigating, initiating, testifying, or assisting in an action filed or to be filed pursuant to s 1- 1188.8. <br> (b) No employer, including the District of Columbia, shall discharge, demote, suspend, threaten, harass, deny promotion to, or in any other manner discriminate against an employee in the terms and conditions of employment because of lawful acts done by the employee on behalf of the employee or others in disclosing information to a government or law enforcement agency relating to, or in furthering a false claims action, including investigation for, initiation of, testimony for, or assistance in, an action filed or to be filed pursuant to s 1-1188.8. <br> (c) Any employer, including the District of Columbia, who violates subsection (a) or (b) of this section shall be liable for the relief necessary to make the employee whole, including reinstatement with the same seniority status that the employee would have had but for the discrimination, two times the amount of back pay, interest on the back pay, compensation for any special damage sustained as a result of the discrimination, and, where appropriate, punitive damages. In addition, the defendant shall be required to pay litigation costs and reasonable attorneys fees, necessarily incurred. An employee may bring an action in the Superior Court for the relief provided in this subsection. <br> (d) An employee who is discharged, demoted, suspended, harassed, denied promotion, or discriminated against in the terms and conditions of employment by any employer, including the District of Columbia, because of participation which directly or indirectly results in submission of a false claim shall be entitled to the remedies provided in subsection (c) of this section, if the following occurs: <br> (1) The employee voluntarily disclosed information to a government or law enforcement agency or acted in furtherance of a false claims action, including investigation for, initiation of, testimony for, or assistance in an action filed or to be filed; and <br> (2) The employee had been harassed, threatened with termination or demotion, or otherwise coerced by the employer or its management into engaging in the fraudulent activity in the first place. <br> </p> <p><b>s 1-1188.11 Limitation of actions; activities antedating this article; burden of proof. </b></p> <p>(a) A civil action brought pursuant to s 1-1188.8 shall not be filed more than 6 years after the date on which the violation of s 1-1188.8 is committed. <br> (b) A civil action brought pursuant to s 1-1188.8 shall not be brought for activity prior to april 12, 1997. <br> (c) In any action brought pursuant to s 1-1188.8, the District or the qui tam plaintiff shall be required to prove all essential elements of the cause of action, including damages, by a preponderance of the evidence. <br> (d) Notwithstanding any other provision of law, a guilty verdict in a criminal proceeding charging false statements or fraud upon a verdict after trial or upon a plea of guilty or nolo contendere, except for a plea of nolo contendere made prior to April 12, 1997, shall estop the defendant from denying the essential elements of the offense in any action which involves the same transaction as in the criminal proceeding brought pursuant to s 1-1188.8. </p> <p><br> <b>s 1-1188.12 Remedies under other laws; severability of provisions; liberality of construction</b>. </p> <p>The provisions of this act are not exclusive, and the remedies provided for shall be in addition to any other remedies provided for in any other law or available under common law. </p> <p><br> </p> <p align="center"><br> <br> <br> <font SIZE="1">� 1998 Phillips and Cohen. 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