California False Claims Act Rewards Whistleblowers
Expanding The Act To Tax Fraud
Legislation Approved By The State Assembly
On June 10, the California State Assembly approved AB 2570, legislation sponsored by California Attorney General Xavier Becerra, seeking substantial expansion of the California False Claims Act (CFCA). Among other things, AB 2570 would give the Attorney General the power to pursue tax fraud cases brought by private whistleblowers, under an enlarged 10-year statute of limitations subjecting violators to severe punitive penalties. Private individuals who initiated such cases would be eligible for rewards if the State recovered. The False Claims Act litigators at Evans Law Firm, Inc. represent individuals who bring whistleblower cases under the CFCA for false claims against the State of California. If you have credible information of fraud against the State, call our attorneys today at (415)441-8669.
Expanding The CFCA To Cover Tax Fraud
Enforcement actions brought pursuant to the CFCA have resulted in the recovery of hundreds of millions of dollars based on allegations that companies doing business with the state wrongfully obtained public funds. Currently, the CFCA does not apply to tax fraud, including claims, records, or statements made under the California Revenue and Taxation Code. Under AB 2570’s expansion of the CFCA, the Attorney General and other local prosecuting authorities would now have the authority to investigate cases of tax fraud brought in private whistleblower cases where the amount of damages claimed exceeds $200,000 and the amount of income, receipts, or sales of the person that made the false claim exceeds $500,000 in a taxable year.
Protection from Employer Retaliation
AB 2570 would also enhance protections for whistleblowers who allege cases of tax fraud by their employers. It would clarify that anti-retaliation protections under the CFCA apply to both current and former employees, contractors, and agents. Additionally, it would shield whistleblowers from civil liability for disclosing internal company documents in breach of contractual obligations of confidentiality to provide evidence of false claims.
In addition to cases under the California False Claims Act, our California whistleblower attorneys also handle whistleblower cases before the Internal Revenue Service (IRS) regarding tax avoidance schemes and before the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) in securities and investment fraud cases and in cases brought under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (“FIRREA”) for bank fraud. If you or a loved one has information regarding State or federal false claims, offshore tax avoidance schemes against the IRS, or securities fraud in violation of SEC and CFTC regulations, contact Ingrid M. Evans and the other California whistleblower and false claims attorneys at Evans Law Firm at (415) 441-8669, or by email at <a href=”mailto:email@example.com”>firstname.lastname@example.org</a>. Our attorneys have experience with complex financial contracts and large insurance companies. We can help guide your case through a jury trial or toward an equitable settlement. We also handle cases involving physical and financial elder abuse, nursing home abuse, whole life insurance and universal life insurance, and indexed, variable, and fixed annuities.