The federal False Claims Act (FCA) has been an extraordinary tool for recovering taxpayer funds fraudulently acquired by unscrupulous actors and government contractors. State legislators have followed suit, enacting state-level fraud statutes similar to that of the federal FCA.

Georgia has not one, but two statutes that allow whistleblowers to bring actions on behalf of the state of Georgia to recover public funds acquired by fraud. The Georgia False Medicaid Claims Act is specific to healthcare claims, while the Georgia Taxpayer Protection Act covers all other fraudulent conduct that is not related to healthcare.

Read on as a whistleblower attorney summarizes each below and explains how they may differ from the federal FCA.

The Georgia False Medicaid Claims Act 

The Georgia False Medicaid Claims Act imposes liability on persons who knowingly present false or fraudulent claims or deceptively conceal or avoid payments relating to Georgia’s Medicaid program.

The Georgia statute largely mirrors the federal FCA with an exception. Public employees are prohibited from bringing a case under the Georgia statute if the allegations are based on misconduct that the public employee had a duty to report or investigate as part of their job.

Additionally, under the Georgia statute, a public employee cannot bring an action based on information to which that public employee had access to as a result of their public employment.

There is no such prohibition on federal employees under the federal statute. However, similar to the federal FCA, the Georgia False Medicaid Claims Act has a qui tam provision for successful actions brought under the act.

In successful cases, a whistleblower may recover between 15 and 25 percent of any proceeds from the action if the Georgia Attorney General joins the case. Whistleblowers may receive between 25 and 30 percent if they pursue the case on their own with private counsel.

A whistleblower award may be reduced if they planned or initiated the fraud, or if the action is largely based on information disclosed in the media or public hearings.

The Georgia Taxpayer Protection Act 

The Georgia Taxpayer Protection Act imposes liability on persons who knowingly present false or fraudulent claims for payment to the state of Georgia, misappropriate state property, or deceptively conceal or avoid payment obligations to the state of Georgia.

This statute was enacted after the healthcare-specific whistleblower statute and was enacted to expand beyond just the healthcare sector. It is similar to the federal FCA except for two pretty significant differences.

First, the federal FCA case commences when a whistleblower and their private counsel file suit, under seal, in a United States federal district court. Under the Georgia Taxpayer Protection Act, no case can proceed/be filed without prior written approval by the Georgia Attorney General.

Second, both acts prohibit actions being brought on publicly available information, defined as “public disclosures.” But the statutes define what a public disclosure is slightly differently.

Under the federal FCA, information or acquired or allegations based on facts acquired pursuant to the Freedom of Information Act (FOIA) are generally prohibited. Under the Georgia Taxpayer Protection Act, the statute explicitly exempts information acquired pursuant to Georgia’s Open Records Act from being prohibited.

In other words, fraud cases can be brought based on information acquired through the Open Records Act.

The qui tam provisions of the Georgia Taxpayer Protection Act mirror that of the FCA and that of the Georgia False Medicaid Claims Act. A whistleblower may recover between 15 and 25 percent of any proceeds from the action if the Georgia Attorney General joins the case, or between 25 and 30 percent of amounts recovered if whistleblowers pursue the case on their own with private counsel.

A whistleblower award may be reduced if they planned or initiated the fraud, or if the action is largely based on information disclosed in the media or public hearings.

Protection from Retaliation

Both of Georgia’s whistleblower statutes protect whistleblowers from unlawful retaliation by their employers for bringing actions or attempting to prevent fraudulent behavior. Under each act, if there is whistleblower retaliation, the whistleblower may be entitled to:

  • Reinstatement with the same seniority status that the whistleblower would have had but for the retaliation; 
  • Two times the amount of back pay;
  • Interest on back pay;
  • Compensation for any special damages sustained as a result of the retaliation;
  • In a successful retaliation case, a defendant may also be required to pay litigation costs and reasonable attorneys’ fees.

Bracker & Marcus LLC represents whistleblowers pursuant to the federal FCA and all state whistleblower statutes, including the Georgia False Medicaid Claims Act and the Georgia Taxpayer Protection Act.

If you have questions about fraud in Georgia or any other state, we are here to help. Book your free evaluation today.