Ten years ago, in an effort spearheaded by Getnick & Getnick’s own Gregory Krakower, New York State amended its “False Claims Act” to allow whistleblowers to file suit, on behalf of New York or any New York local government, against individual or corporate tax cheats with net income or sales of over $1,000,000 a year, and that have defrauded New York out of at least $350,000. Whistleblowers are eligible for an award of up to 30% of whatever the government recovers from a defendant – who faces treble damages, interest and penalties.

The law has resulted in over $450 million in recoveries with no abusive litigation or burdens on either the government or on small businesses.

Accordingly, legislators in California, Michigan, and Washington DC have all introduced legislation, modelled after the New York False Claims Act, to empower, protect and reward whistleblowers who expose and file lawsuits against large-scale state and local tax cheats.

As Mr. Krakower noted in an article today on these new proposals: “New York’s ten years of experience demonstrates that any state establishing a false claims act with jurisdictional thresholds for tax whistleblowers will recover significant amounts of tax dollars, level the playing field for small businesses by stopping sales tax cheats, and not lead to any abuse.”

Click here to read article.

Click here to read the New York False Claims Act