fraud

In Kelly v. United States the Supreme Court unanimously overturned the federal fraud convictions of the Bridgegate masterminds because they didn’t seek to obtain money or property.

The Democratic mayor of Fort Lee, New Jersey, refused to support then-governor Chris Christie’s re-election. As punishment, under the guise of conducting a traffic study, one of Christie’s staff members and two high ranking Port Authority employees decided to close...

Credit card fraud is a concern for all Americans, and with the introduction of EMV chip cards, counterfeit fraud at U.S. retailers has seen a decline. Despite the efforts of the major credit card companies and their EMV chip requirements, fraud has continued to rise as a whole, specifically at the gas pump. While the deadline for retail merchants to make the change to EMV enabled equipment or face a shift in...

The False Claims Act (FCA) allows third parties to sue on behalf of the United States for fraud committed against the United States. Per the Act a FCA complaint is kept secret “under seal” until the United States can review it and decide whether it wants to participate in the case.

In State Farm Fire and Casualty Co. v. United States ex rel. Rigsby the Supreme Court held unanimously that if the seal requirement is violated the complaint doesn’t have to be dismissed.

While the Supreme Court has yet to rule whether states and local governments can bring FCA claims, local governments, but not state governments, can be sued for making false claims against the federal government.  

This theory may help states at least indirectly in some instances.  

Fraud against the federal government is a problem for the states in particular when the fraud involves money taken from a federal-state program like Medicaid, which is what was alleged to have happened in Universal Health Services v. U.S. ex. rel. Escobar. The Supreme Court adopted a new theory of liability under the False Claims Act in this case.