North Carolina False Claims Act Information

North Carolina has two whistleblower statutes: 1.) the False Claims Act and 2.) the Medical Assistance Provider False Claims Act. Information on each statute can be found below.

North Carolina False Claims Act

A private person can bring a civil action for violations of the State’s False Claims Act on behalf of the State. This is known as a qui tam action. In a successful qui tam case, the whistleblower is entitled to between 15-30% of the proceeds recovered and collected in the action, plus reasonable expenses, attorney’s fees, and costs of the case.

Whistleblowers reporting fraud against the state of North Carolina are protected against retaliation under the statute.

The North Carolina False Claims Act–N.C.G.S §§1-605 through 617–provides liability for any 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 material to a false or fraudulent claim.
  3. Conspires to commit a violation of subdivision (1), (2), (4), (5), (6), or (7) of this section.
  4. 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 that money or property.
  5. Is authorized to make or deliver a document certifying receipt of property used or to be used by the State and, intending to defraud the State, makes or delivers the receipt without completely knowing that the information on the receipt is true.
  6. Knowingly buys, or receives as a pledge of an obligation or debt, public property from any officer or employee of the State who lawfully may not sell or pledge the property.
  7. Knowingly makes, uses, or causes to be made or used, a false record or statement material to an obligation to pay or transmit money or property to the State, or knowingly conceals or knowingly and improperly avoids or decreases an obligation to pay or transmit money or property to the State.

A person who commits any of these acts is liable to the State for a civil penalty of $5,500-$11,000 for each violation, plus three times the amount of damages that the State sustains because of the act of that person.

Medical Assistance Provider False Claims Act 
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