The Tennessee False Claims Act (TFCA) is a state law that provides a mechanism for whistleblowers to report fraud and other fraudulent activities by individuals and businesses that receive state funds. The law allows individuals to file a lawsuit on behalf of the state and collect a portion of any damages awarded in court.

How Does the Tennessee False Claims Act Work?

The Tennessee False Claims Act is modeled after the federal False Claims Act and is intended to combat fraud and waste in state-funded programs. Under the law, whistleblowers, also known as "relators," can file a lawsuit against companies and individuals who commit fraud and false claims against the state.

When a whistleblower files a lawsuit under the TFCA, the Attorney General’s office is notified and may decide to intervene in the case. The whistleblower must provide the Attorney General’s office with all evidence of the fraud they have uncovered.

If the Attorney General’s office decides not to intervene in the case, the whistleblower can still pursue the lawsuit on their own. If the whistleblower wins the case, they are entitled to receive a portion of the damages awarded, usually between 15% and 25%.

Who Is Covered By the Tennessee False Claims Act?

The TFCA covers any person or business that receives state funds. This includes individuals, corporations, partnerships, non-profit organizations, and government agencies. State funds can include Medicaid, state grants, and other state appropriations.

What Types of Fraud Are Covered By the TFCA?

The Tennessee False Claims Act covers a wide range of fraudulent activity including:

• Billing for services not provided
• Overcharging for services or goods
• Filing false claims
• Kickbacks
• Misuse of government property or resources
• Falsifying certifications or other documents
• Concealing information to avoid payment

What Are the Penalties for Violating the TFCA?

Violating the TFCA can result in significant penalties. Individuals or businesses found guilty of violating the TFCA can be required to pay damages up to three times the amount of the fraud, as well as a penalty ranging from $5,000 to $11,000 for each false claim submitted.

Additionally, individuals or businesses that have been found guilty of violating the TFCA can be excluded from receiving state funds for up to five years.

Why Is the Tennessee False Claims Act Important?

The Tennessee False Claims Act is an important tool in the fight against fraud and waste in state-funded programs. Whistleblowers who come forward under the law help to protect taxpayers’ money and ensure that it is being spent correctly, instead of lining the pockets of dishonest individuals or corporations.

By incentivizing whistleblowers to come forward, the law provides a powerful means of detecting fraud and waste that may otherwise go unnoticed. The law also helps to hold those who defraud the state accountable for their actions, ensuring that they are not able to continue the fraudulent activity.

Conclusion

The Tennessee False Claims Act is an important law that serves to protect Tennessee taxpayers from fraud and waste. The law incentivizes whistleblowers to come forward and report fraudulent activity, in turn helping to ensure that state funds are being spent properly. Individuals or businesses found guilty of violating the law can face significant penalties, including exclusion from future state funding. Overall, the Tennessee False Claims Act is an important tool in the fight against fraud and waste in state-funded programs.