Corporate Compliance

New Jersey governor signs False Claims Act

Compliance Monitor, January 23, 2008

New Jersey became the 20th state to pass its own version of the federal False Claims Act when Governor Jon Corzine signed the bill into law on January 13. The law goes into effect on April 15.

The law allows private individuals in New Jersey to bring an action alone or by working with the state attorney general against any person who knowingly causes the state to pay a false claim. The bill provides for civil penalties between $5,000 and $10,000 for each verified count of a false claim, and imposes damages of up to three times the cost of any losses sustained because of the false claim.

The False Claims Act appears on the Governor's Web site as part of a list of bills he signed into law. Click here to review the list.


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