|
Nevada Submission of False
Claims
to State or Local Government
NRS 357.010
Definitions. 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)
NRS 357.020
"Claim" defined. "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)
NRS 357.030
"Political subdivision" defined.
"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
NRS 357.040
Liability for damages and civil penalty for
certain acts.
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)
NRS 357.050
Limitation of damages and waiver of penalty for
cooperation
of defendant.
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)
NRS 357.060
Joint and several liability.
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
NRS 357.070
Investigation and action by attorney general.
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)
NRS 357.080
Maintenance of action by private plaintiff;
limitations; complaint under seal; copy of
complaint and written disclosure of evidence to
be sent to attorney general.
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)
NRS 357.090
Action based on information public employee
discovered during public employment prohibited in
certain circumstances.
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)
NRS 357.100
Action based upon certain public disclosures may
only be brought by attorney general or original
source of information.
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, ôoriginal sourceö 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)
NRS 357.110
Attorney general may elect to intervene in action
by private plaintiff; motion to extend time for
election; unsealing of complaint.
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)
NRS 357.120
Effect of intervention of attorney general in
action by private plaintiff; motion to dismiss;
settlement.
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)
NRS 357.130
Effect of declination of attorney general to
intervene in action by private plaintiff;
authority for and effect of election by attorney
general to intervene subsequently in such action.
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)
NRS 357.140
Response by defendant.
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)
NRS 357.150
Stay of discovery by private plaintiff; extension.
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)
NRS 357.160
Court-imposed limitation upon participation of
private plaintiff in action.
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)
NRS 357.170
Limitation of actions; standard of proof; effect
of certain findings of guilt in criminal
proceeding on action.
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)
NRS 357.180
Award of expenses and attorney’s fees.
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
NRS 357.190
"Recovery" defined.
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)
NRS 357.200
Distribution to special account in state general
fund if attorney general initiated action.
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)
NRS 357.210
Distribution to private plaintiff in certain
actions.
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)
NRS 357.220
Distribution to private plaintiff in action based
upon information obtained by public employee
during public employment.
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)
NRS 357.230
Distribution of unapportioned portion to general
fund of state or political subdivision, or both.
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
NRS 357.240
Employer prohibited from forbidding employee from
making certain disclosures or acting in
furtherance of action relating to false claim and
from taking any retaliatory action against
employee for such disclosures or actions.
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)
NRS 357.250
Liability of employer for violations of NRS
357.240; 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)
|
