Recent Developments in the New York False Claims Act

February 2, 2011

On January 26, 2011, Attorney General Eric Schneiderman unveiled his first major initiative, a plan to increase enforcement of the recently amended New York False Claims Act ("NY FCA") to target fraud against the state. In addition to increasing prosecution of Medicare and Medicaid fraud, the Attorney General announced his intention to create a Taxpayer Protection Unit to focus on other areas of contractor fraud. The announcement was not unexpected. As a state senator, General Schneiderman shepherded the 2010 New York Fraud Enforcement and Recovery Act ("NY FERA"), which consisted of amendments to the NY FCA, through the New York legislature, and promised throughout his 2010 campaign for Attorney General that enforcement of the invigorated statute would be his office's top priority in 2011. The move has serious implications for any entity doing business with or within the state of New York.

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