New York State Bill Would Boost Incentive for Whistleblowers During States of Emergency
State Sen. Todd Kaminsky, a sponsor of the legislation, issued a statement saying the state must encourage whistleblowers to come forward to bring "scammers" to justice and help stop public theft in the future.
May 20, 2020 at 06:49 PM
3 minute read
Unapproved COVID-19 tests that were seized on March 22, 2020 from the DHL Express Consignment Facility at JFK Airport in the Queens, New York. Photo: provided by the U.S. (U.S. Immigration and Customs Enforcement via AP)
New York lawmakers this week have introduced a bill that would add to the incentive for whistleblowers to report fraud against the state during a state of emergency.
The proposal would increase the amount awarded to a person who initiates a qui tam action, if it's based on the disclosure of information related to the use of government money during a declared state of emergency, according to a summary tied to the legislation.
State Sen. Todd Kaminsky, D-Nassau, a sponsor of the bill, issued a statement saying the state must encourage whistleblowers to come forward to bring "scammers" to justice and to help stop public theft in the future.
"Criminals commit a double crime against the public when they defraud the state during this health crisis: They rob taxpayers and put New Yorkers at risk by undermining the efforts of our essential workers, health care professionals and first responders," he said in a statement.
According to Kaminsky's office, a whistleblower is entitled under current law to 15% to 30% of the proceeds the government recoups following a judgement. Under the bill, courts would be given the authority to increase that amount to up to 40%, according to his office.
Assemblyman Jeffrey Dinowitz, D-Bronx, issued a statement saying the state should incentivize whistleblowers to come forward with information that can aid the state in recovering funds.
"We must do everything possible to prevent coronavirus-related fraud schemes," he said in a statement.
The bill has been introduced as New York state is under an emergency declaration put in place March 7 because of the coronavirus outbreak. The state of emergency was declared through Sept. 7.
In their statement announcing the legislation, Kaminsky and Dinowitz referred to media reports of price-gouging and other scams related to health supplies since the onset of the COVID-19 pandemic.
Meanwhile, federal prosecutors in the Eastern District of New York have charged defendants with violations of the Defense Production Act, in one case for allegedly inflating the price of surgical masks and in another on allegations of hoarding protective equipment.
READ MORE:
Judge Awards $1.5M in Attorney Fees in Whistleblower Case Over Medical Devices
Medical Device Company Agrees to Pay $39.5 Million to End Cases Over Kickback Allegations
Incentivizing SEC Whistleblowers and Cooperating Companies
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