False Claims Unit

The Attorney General works to protect the state against fraud and other financial misconduct through the enforcement of the California False Claims Act. Investigations and prosecutions brought pursuant to the Act have resulted in the recovery of hundreds of millions of dollars in wrongfully obtained public funds.

The California False Claims Act permits the Attorney General or local prosecuting authorities to bring a civil law enforcement action to recover treble damages and civil penalties against any person who knowingly makes or uses a false statement or document to either obtain money or property from the State or local government or avoid paying or transmitting money or property to the State or local government. The False Claims Unit of the Corporate Fraud Section investigates alleged violations of the Act based upon referrals from state, federal and local agencies, tips from members of the public and qui tam complaints, otherwise known as whistleblower complaints.

The California False Claims Act's qui tam provision permits a whistleblower to file an action to enforce the Act. Such lawsuits have resulted in some of the most significant recoveries to date under the Act. The whistleblower's lawsuit is filed under seal to permit the Attorney General or local prosecuting authority to investigate and, if warranted, intervene in the action. The whistleblower may be eligible to receive a share of any recovery, and the Act provides him or her with protection against retaliation. The California False Claims Act is a complex statute, and persons who are interested in bringing a qui tam action are encouraged to consult with a qualified attorney. Representation by an attorney is required to proceed with a False Claims Act case and to receive a share of the proceeds.

The False Claims Unit has brought actions against, among others:

• Companies who have sold defective products to the state or local government;
• Companies who have overcharged for goods or services in violation of state or local agency contract terms or for goods or services not provided as represented;
• Financial institutions that have filed false reports with state agencies;
• Investment firms that have misled government pension plans; and
• Mining companies that have filed false reports to conceal the theft of natural resources and avoid paying royalties.

Qui tam plaintiffs (whistleblowers) and local prosecutors who bring actions involving state funds must serve a copy of their complaint and disclosure statement upon the Attorney General. In addition, the parties to any appeal involving the California False Claims Act must serve copies of all filings upon the Attorney General. These materials should be sent to:

Qui tam plaintiff’s counsel are also requested to notify the Attorney General of filings by emailing FalseClaims@doj.ca.gov.

Members of the public who would like to advise the Attorney General of a potential false claim against the state may also email FalseClaims@doj.ca.gov.

The False Claims Unit coordinates its efforts with other sections of the Attorney General's Office, including those responsible for Consumer Protection, Antitrust & Business Competition, and the supervision of Charities. Violations of the California False Claims Act involving the Medi-Cal program are investigated and prosecuted by the Attorney General's Bureau of Medi-Cal Fraud & Elder Abuse.