USA Statutes : nevada
Title : Title 31 - PUBLIC FINANCIAL ADMINISTRATION
Chapter : CHAPTER 357 - SUBMISSION OF FALSE CLAIMS TO STATE OR LOCAL GOVERNMENT
As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 357.020
and 357.030 have the meanings ascribed to them in those
sections.
(Added to NRS by 1999, 824 )
“Claim” means a request or demand
for money, property or services made to:
1. An officer, employee or agent of this state or of a political
subdivision of this state; or
2. A contractor, grantee or other recipient of money from the
State or a political subdivision of this state if any part of the money,
property or services requested or demanded was provided by the State or
political subdivision.
(Added to NRS by 1999, 824 )
“Political
subdivision” means a county, city, assessment district or any other local
government as defined in NRS 354.474 .
(Added to NRS by 1999, 824 )
LIABILITY
1. Except as otherwise provided in NRS 357.050 , a person who, with or without specific intent
to defraud, does any of the following listed acts is liable to the State
or a political subdivision, whichever is affected, for three times the
amount of damages sustained by the State or political subdivision because
of the act of that person, for the costs of a civil action brought to
recover those damages and for a civil penalty of not less than $2,000 or
more than $10,000 for each act:
(a) Knowingly presents or causes to be presented a false claim for
payment or approval.
(b) Knowingly makes or uses, or causes to be made or used, a false
record or statement to obtain payment or approval of a false claim.
(c) Conspires to defraud by obtaining allowance or payment of a
false claim.
(d) Has possession, custody or control of public property or money
and knowingly delivers or causes to be delivered to the State or a
political subdivision less money or property than the amount for which he
receives a receipt.
(e) Is authorized to prepare or deliver a receipt for money or
property to be used by the State or a political subdivision and knowingly
prepares or delivers a receipt that falsely represents the money or
property.
(f) Knowingly buys, or receives as security for an obligation,
public property from a person who is not authorized to sell or pledge the
property.
(g) Knowingly makes or uses, or causes to be made or used, a false
record or statement to conceal, avoid or decrease an obligation to pay or
transmit money or property to the State or a political subdivision.
(h) Is a beneficiary of an inadvertent submission of a false claim
and, after discovering the falsity of the claim, fails to disclose the
falsity to the State or political subdivision within a reasonable time.
2. As used in this section, a person acts “knowingly” with respect
to information if he:
(a) Has knowledge of the information;
(b) Acts in deliberate ignorance of whether the information is true
or false; or
(c) Acts in reckless disregard of the truth or falsity of the
information.
(Added to NRS by 1999, 824 )
In a civil action pursuant to this chapter,
the court may give judgment for not less than twice or more than three
times the amount of damages sustained, and no civil penalty, if it finds
that:
1. The person against whom the judgment is entered:
(a) Furnished all information known to him concerning the act,
within 30 days after becoming aware of the information, to the Attorney
General; and
(b) Fully cooperated with any investigation of the act by the State
or political subdivision; and
2. At the time the information was furnished, no criminal
prosecution or civil or administrative proceeding had commenced with
respect to the act and the person had no knowledge of the existence of
any investigation with respect to the act.
(Added to NRS by 1999, 825 )
Liability pursuant to
this chapter is joint and several for an act done by two or more persons.
(Added to NRS by 1999, 825 )
CIVIL ACTIONS
The
Attorney General may investigate any alleged liability pursuant to this
chapter and may bring a civil action pursuant to this chapter against the
person liable.
(Added to NRS by 1999, 825 )
1. Except as otherwise provided in this section and NRS 357.090
and 357.100 , a private plaintiff may maintain an action
pursuant to this chapter on his own account and that of the State if
money, property or services provided by the State are involved, or on his
own account and that of a political subdivision if money, property or
services provided by the political subdivision are involved, or on his
own account and that of both the State and a political subdivision if
both are involved. After such an action is commenced, it may be dismissed
only with leave of the court, taking into account the public purposes of
this chapter and the best interests of the parties.
2. If a private plaintiff brings an action pursuant to this
chapter, no other person may bring another action pursuant to this
chapter based on the same facts.
3. An action may not be maintained by a private plaintiff pursuant
to this chapter:
(a) Against a member of the Legislature or the Judiciary, an
elected officer of the Executive Department of the State Government, or a
member of the governing body of a political subdivision, if the action is
based upon evidence or information known to the State or political
subdivision at the time the action was brought.
(b) If the action is based upon allegations or transactions that
are the subject of a civil action or an administrative proceeding for a
monetary penalty to which the State or political subdivision is already a
party.
4. A complaint filed pursuant to this section must be placed under
seal and so remain until the Attorney General has elected whether to
intervene. No service may be made upon the defendant until the complaint
is unsealed.
5. On the date the private plaintiff files his complaint, he shall
send a copy of the complaint to the Attorney General by mail with return
receipt requested. He shall send with each copy of the complaint a
written disclosure of substantially all material evidence and information
he possesses.
(Added to NRS by 1999, 825 , 826 )
No action
may be maintained pursuant to NRS 357.080 that is based upon information discovered by a
present or former employee of the State or a political subdivision during
his employment, unless he first in good faith exhausted internal
procedures for reporting and seeking recovery of the proceeds of the
fraudulent activity through official channels and the State or political
subdivision failed to act on the information provided for at least 6
months.
(Added to NRS by 1999, 828 )
1. No action may be maintained pursuant to this chapter that is
based upon the public disclosure of allegations or transactions in a
criminal, civil or administrative hearing, in an investigation, report,
hearing or audit conducted by or at the request of a house of the
Legislature, an auditor or the governing body of a political subdivision,
or from the news media, unless the action is brought by the Attorney
General or an original source of the information.
2. As used in this section, “original source” means a person:
(a) Who has direct and independent knowledge of the information on
which the allegations were based;
(b) Who voluntarily provided the information to the State or
political subdivision before bringing an action based on the information;
and
(c) Whose information provided the basis or caused the making of
the investigation, hearing, audit or report that led to the public
disclosure.
(Added to NRS by 1999, 828 )
1. Within 120 days after receiving a complaint and disclosure, the
Attorney General may intervene and proceed with the action or he may, for
good cause shown, move the court to extend the time for his election
whether to proceed. The motion may be supported by affidavits or other
submissions in chambers.
2. If the Attorney General elects to intervene, the complaint must
be unsealed. If the Attorney General elects not to intervene, the private
plaintiff may proceed and the complaint must be unsealed.
(Added to NRS by 1999, 826 )
1. If the Attorney General intervenes, the private plaintiff
remains a party to an action pursuant to NRS 357.080 .
2. The Attorney General may move to dismiss the action for good
cause. The private plaintiff must be notified of the filing of the motion
and is entitled to oppose it and present evidence at the hearing.
3. Except as otherwise provided in this subsection, the Attorney
General may settle the action. If the Attorney General intends to settle
the action, he shall notify the private plaintiff of that fact. Upon the
request of the private plaintiff, the court shall determine whether
settlement of the action is consistent with the public purposes of this
chapter and shall not approve the settlement of the action unless it
determines that such settlement is consistent with the public purposes of
this chapter.
(Added to NRS by 1999, 826 )
1. If the Attorney General elects not to intervene in an action
pursuant to NRS 357.080 , the private
plaintiff has the same rights in conducting the action as the Attorney
General would have had. A copy of each pleading or other paper filed in
the action, and a copy of the transcript of each deposition taken, must
be mailed to the Attorney General if the Attorney General so requests and
pays the cost thereof.
2. Upon timely application, the Attorney General may intervene in
an action in which he has previously declined to intervene, if the
interest of the State or a political subdivision in recovery of the money
or property involved is not being adequately represented by the private
plaintiff.
3. If the Attorney General so intervenes, the private plaintiff
retains primary responsibility for conducting the action and any recovery
must be apportioned as if the Attorney General had not intervened.
(Added to NRS by 1999, 826 )
The defendant is entitled to
30 days in which to respond after a complaint filed pursuant to NRS
357.080 is unsealed and served upon him.
(Added to NRS by 1999, 826 )
1. The court may stay discovery by a private plaintiff for not
more than 60 days if the Attorney General shows that the proposed
discovery would interfere with the investigation or prosecution of a
civil or criminal matter arising out of the same facts, whether or not
the Attorney General participates in the action.
2. The court may extend the stay upon a further showing that the
Attorney General has pursued the civil or criminal investigation or
proceeding with reasonable diligence and the proposed discovery would
interfere with its continuation. Discovery may not be stayed for a total
of more than 6 months over the objection of the private plaintiff, except
for good cause shown by the Attorney General.
3. A showing made pursuant to this section must be made in
chambers.
(Added to NRS by 1999, 828 )
Upon a showing by the Attorney General that
unrestricted participation by a private plaintiff would interfere with or
unduly delay the conduct of an action, or would be repetitious,
irrelevant or solely for harassment, the court may limit his
participation by, among other measures, limiting:
1. The number of witnesses he may call;
2. The length of the testimony of the witnesses; or
3. His cross-examination of witnesses.
(Added to NRS by 1999, 828 )
1. An action pursuant to this chapter may not be commenced more
than 3 years after the date of discovery of the fraudulent activity by
the Attorney General or more than 5 years after the fraudulent activity
occurred, whichever is earlier. Within those limits, an action may be
based upon fraudulent activity that occurred before October 1, 1999.
2. In an action pursuant to this chapter, the standard of proof is
a preponderance of the evidence. A finding of guilt in a criminal
proceeding charging false statement or fraud, whether upon a verdict of
guilty or a plea of guilty or nolo contendere, estops the person found
guilty from denying an essential element of that offense in an action
pursuant to this chapter based upon the same transaction as the criminal
proceeding.
(Added to NRS by 1999, 829 )
1. If the Attorney General or a private plaintiff prevails in or
settles an action pursuant to NRS 357.080 , the private plaintiff is entitled to a
reasonable amount for expenses that the court finds were necessarily
incurred, including reasonable costs, attorney’s fees and the fees of
expert consultants and expert witnesses. Those expenses must be awarded
against the defendant, and may not be allowed against the State or a
political subdivision.
2. If the defendant prevails in the action, the court may award
him reasonable expenses and attorney’s fees against the party or parties
who participated in the action if it finds that the action was clearly
frivolous or vexatious or brought solely for harassment.
(Added to NRS by 1999, 828 )
DISTRIBUTION OF RECOVERY
As used in NRS 357.190 to 357.230 ,
inclusive, “recovery” includes civil penalties and does not include any
allowance of expenses or attorney’s fees.
(Added to NRS by 1999, 827 )
If the Attorney General initiates
an action pursuant to this chapter, 33 percent of any recovery must be
paid into the State General Fund to the credit of a special account, for
use by the Attorney General as appropriated or authorized by the
Legislature in the investigation and prosecution of false claims.
(Added to NRS by 1999, 827 )
1. If the Attorney General intervenes at the outset in an action
pursuant to NRS 357.080 , the private
plaintiff is entitled, except as otherwise provided in NRS 357.220 , to receive not less than 15 percent or more
than 33 percent of any recovery, according to the extent of his
contribution to the conduct of the action.
2. If the Attorney General does not intervene in the action at the
outset, the private plaintiff is entitled, except as otherwise provided
in NRS 357.220 , to receive not less
than 25 percent or more than 50 percent of any recovery, as the court
determines to be reasonable.
(Added to NRS by 1999, 827 )
1. If the action is one described in NRS 357.090 , the present or former employee of the State
or political subdivision is not entitled to any minimum percentage of any
recovery, but the court may award him no more than 33 percent of the
recovery if the Attorney General intervenes in the action at the outset,
or no more than 50 percent if the Attorney General does not intervene,
according to the significance of his information, the extent of his
contribution to the conduct of the action and the response to his efforts
to report the false claim and gain recovery through other official
channels.
2. If the private plaintiff is a present or former employee of the
State or a political subdivision and benefited financially from the
fraudulent activity, he is not entitled to any minimum percentage of any
recovery, but the court may award him no more than 33 percent of the
recovery if the Attorney General intervenes in the action at the outset,
or no more than 50 percent if the Attorney General does not intervene,
according to the significance of his information, the extent of his
contribution to the conduct of the action, the extent of his involvement
in the fraudulent activity, his attempts to avoid or resist the activity
and the other circumstances of the activity.
(Added to NRS by 1999, 827 )
The portion of any recovery
not apportioned pursuant to NRS 357.200 , 357.210 and
357.220 must be paid into the State
General Fund if the money, property or services were provided only by the
State, or into the general fund of the political subdivision if they were
provided only by a political subdivision. If the action involved both the
State and a political subdivision, the court shall apportion the
remaining portion of any recovery between them according to the
respective values of the money, property or services provided by each.
(Added to NRS by 1999, 827 )
MISCELLANEOUS PROVISIONS
1. An employer shall not adopt or enforce any rule or policy
forbidding an employee to disclose information to the State, a political
subdivision or a law enforcement agency or to act in furtherance of an
action pursuant to this chapter, including investigation for, bringing or
testifying in such an action.
2. An employer shall not discharge, demote, suspend, threaten,
harass, deny promotion to or otherwise discriminate against an employee
in the terms or conditions of his employment because of lawful acts done
by him on his own behalf or on behalf of others in disclosing information
to the State, a political subdivision or a law enforcement agency in
furtherance of an action pursuant to this chapter, including
investigation for, bringing or testifying in such an action.
(Added to NRS by 1999, 829 )
240
; entitlement of employee to remedies.
1. An employer who violates subsection 2 of NRS 357.240 is liable to the affected employee in a civil
action for all relief necessary to make him whole, including, without
limitation, reinstatement with the same seniority as if the
discrimination had not occurred or damages in lieu of reinstatement if
appropriate, twice the amount of lost compensation, interest on the lost
compensation, any special damage sustained as a result of the
discrimination and punitive damages if appropriate. The employer is also
liable for expenses recoverable pursuant to NRS 357.180 , costs and attorney’s fees.
2. An employee is entitled to the remedies provided in subsection
1 only if:
(a) He voluntarily disclosed information to the State or a
political subdivision or voluntarily acted in furtherance of an action
pursuant to this chapter; and
(b) He was harassed, threatened with termination or demotion, or
otherwise coerced by his employer into any participation in fraudulent
activity.
(Added to NRS by 1999, 829 )
