New York Creates Tax Fraud Unit to Protect Tax Payers using State’s False Claims Act

On January 27, 2011, New York Attorney General, Eric Schneiderman, announced, his initiative to use a taxpayer-protection unit empowered through New York’s recently strengthened False Claims Act to target multi-state corporate tax fraud schemes, corrupt contractors, and firms that steal public pension funds.  Attorney General Schneiderman remarked that the State’s False Claims Act is “the strongest anti-fraud statute in the United States” and also makes New York the only state able to bring false claims against those who commit tax fraud.  The Attorney General also plans to enhance his office’s Medicaid Fraud Control unit through taking advantage of federal programs which match state funding three-to-one through recoveries.

Mr. Schneiderman commented, “Today’s announcement is a signal to anyone thinking of ripping off New York taxpayers.  We will go after you with every tool we have.”  The strengthened False Claims Act was sponsored by Attorney General Schneiderman when he was a state senator and contains a provision which allows whistleblowers to pursue “millionaire tax cheats” defrauding New York of more than $350,000.

More information:  http://www.businessweek.com/news/2011-01-27/new-york-to-pursue-corporate-tax-fraud-with-new-unit.html