The Rise of State False Claims Act Enforcement

Host Jonathan Porter welcomes Husch Blackwell partners Rebecca Furdek and Todd Gee back to the podcast to discuss the growing amount of enforcement under various state-level False Claims Acts, and the recent Risk Management Magazine article that Rebecca and Todd have written on the subject. Our conversation starts with an overview of state False Claims Acts and how the use of FCA varies from state to state. We examine recent settlements in Massachusetts and Minnesota that show the reach of state False Claims Acts and discuss a large District of Columbia False Claims Act settlement for tax liability that could be the next big enforcement area for state-level False Claims Acts.Our conversation then turns to how states have traditionally focused FCA enforcement on Medicaid claims but are broadening their FCA laws to reach new types of government claims. We discuss how California, for example, is considering a new law that would allow false claims relating to tax to be enforceable under the California False Claims Act. We also talk about how State Attorneys General are likely to play a huge role in using their state FCAs to enforce things that may not gain traction with federal authorities.We conclude with a discussion of what might happen next, and how those doing business with multiple states should track what is enforceable under each state’s FCA. We look at how a robust compliance program should be every company’s first line of defense against FCA liability by finding and fixing issues before they result in FCA problems.Jonathan Porter | Full BiographyJonathan focuses on white collar criminal defense, federal investigations brought under the False Claims Act, and litigation against the government and whistleblowers. He advises clients on sensitive and enterprise-threatening litigation, drawing on his experience as a former federal prosecutor. At the Department of Justice, Jonathan earned a reputation as a top white-collar prosecutor and trial lawyer and was a key member of multiple international healthcare fraud takedowns and high-profile financial crime prosecution teams. He serves as a vice chair of the American Health Law Association’s Fraud and Abuse Practice Group and teaches white collar crime as an adjunct professor of law at Mercer University School of Law.Rebecca Furdek | Full BiographyA partner in Husch Blackwell’s Milwaukee office, Rebecca is a member of the firm’s White Collar, Internal Investigations & Compliance team and regularly helps clients navigate today’s regulatory and government enforcement landscape. Before joining Husch, Rebecca served as Counsel to the Solicitor at the U.S. Department of Labor (DOL), where she gained firsthand insight into federal agency rulemaking and administrative enforcement. Prior to her government service, she worked as an associate in the Washington, D.C. office of a global law firm, focusing on litigation and government enforcement, and began her legal career as a judicial law clerk at the U.S. District Court for the Northern District of Texas. During law school, Rebecca served as a law clerk with the U.S. Senate Judiciary Committee.Todd Gee | Full BiographyBased in Washington, Todd is a former United States Attorney and experienced trial lawyer who represents businesses and individuals in complex criminal defense, corporate fraud investigations, and regulatory compliance matters. With years of experience as a federal prosecutor and counsel to a congressional committee, he is well-positioned to help clients navigate high-stake and sensitive issues. Todd specializes in guiding them through multifaceted investigations involving overlapping risks posed by criminal investigators, civil litigants, regulatory agencies, or congressional inquiries.