Indiana False Claims Act

Indiana False Claims and Whistleblower Protection Act

The Indiana False Claims and Whistleblower Protection Act allows an individual to bring a civil action for a violation of the state’s False Claims Act on behalf of the state. In the event of a successful qui tam action, the whistleblower is entitled to receive between 15% and 30% of the proceeds of the action or settlement, plus reasonable attorney’s fees and an amount to cover the expenses and costs of bringing the action.

Under the statute, the whistleblower is protected against retaliation for engaging in protected activity.

The Indiana False Claims and Whistleblower Protection act, Ind. Code §§ 5-11-5.5-1 to 5-11-5.5-18, provides liability for any person who knowingly or intentionally:

  • (1) presents a false claim to the state for payment or approval;
  • (2) makes or uses a false record or statement to obtain payment or approval of a false claim from the state;
  • (3) with intent to defraud the state, delivers less money or property to the state than the amount recorded on the certificate or receipt the person receives from the state;
  • (4) with intent to defraud the state, authorizes issuance of a receipt without knowing that the information on the receipt is true;
  • (5) receives public property as a pledge of an obligation on a debt from an employee who is not lawfully authorized to sell or pledge the property;
  • (6) makes or uses a false record or statement to avoid an obligation to pay or transmit property to the state;
  • (7) conspires with another person to perform an act described in subdivisions (1) through (6); or
  • (8) causes or induces another person to perform an act described in subdivisions (1) through (6);

Violators are liable to the state for a civil penalty of at least $5,000 per violation and up to three (3) times the amount of damages sustained by the state.

The Indiana False Claims and Whistleblower Protection Act does not apply to (1) a claim, record, or statement concerning income tax; or (2) a claim, request, demand, statement, record, act, or omission made or submitted after June 30, 2014, in relation to the Medicaid program. Indiana has a separate statute for Medicaid false claims.

Indiana Medicaid False Claims and Whistleblower Protection Act

Under the statute, IC 5-11-5.7-1 to 5-11-5.7-18, a person who:

  • (1) knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval;
  • (2) knowingly makes, uses, or causes to be made or used, a false record or statement that is material to a false or fraudulent claim;
  • (3) has possession, custody, or control of property or money used, or to be used, by the state, and knowingly delivers, or causes to be delivered, less than all of the money or property;
  • (4) is authorized to make or deliver a document certifying receipt of property used, or to be used, by the state and, with intent to defraud the state, authorizes issuance of a receipt without knowing that the information on the receipt is true;
  • (5) knowingly buys or receives, as a pledge of an obligation or debt, public property from an employee who is not lawfully authorized to sell or pledge the property;
  • (6) knowingly:
    • (A) makes, uses, or causes to be made or used, a false record or statement concerning an obligation to pay or transmit money or property to the state; or
    • (B) conceals or knowingly and improperly avoids or decreases an obligation to pay or transmit money or property to the state;
  • (7) conspires with another person to perform an act described in subdivisions (1) through (6); or
  • (8) causes or induces another person to perform an act described in subdivisions (1) through (6);

is liable to the state for a civil penalty of at between $5,500 - $11,000 and for up to three (3) times the amount of damages sustained by the state.

A person may bring a civil action for a violation of the Indiana Medicaid False Claims and Whistleblower Protection Act on behalf of the state. In the event of a successful action, the whistleblower is entitled to 15% - 30% of the proceeds of the action or settlement, plus reasonable attorney’s fees and an amount to cover the expenses and costs of bringing the action.

This statute also protects whistleblowers against retaliation for engaging in protected activity.

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