For the purposes of this chapter, the following words shall
have the definitions described herein, unless the context clearly
indicates that such definition was not intended:
CLAIM
Any request or demand, whether under a contract or otherwise,
for money or property, or financial assistance which is made to any
employee, officer or agent of the County or to any contractor, grantee
or other recipient of money or property, if the County provides any
portion of the money or property which is requested or demanded, or
will reimburse such contractor, grantee, or other recipient for any
portion of the money or property which is requested or demanded.
CONTRACTOR
A person who enters into a contract with the County or any
owner, officer, director, employee or agent of such person, any subcontractor
of such person or any person acting in concert or conspiring with
such person, but not including any person who is a County official
or employee or was a County official or employee at the time of the
alleged conduct.
COUNTY
The County of Allegheny or any agencies or instrumentalities
thereof.
FALSE CLAIM
A claim, or information relating to a claim, which is false
or fraudulent.
INVESTIGATION
An inquiry conducted for the purpose of ascertaining whether
any person is or has been engaged in a violation of this chapter.
KNOWING
Acting with actual knowledge of the information, in deliberate
ignorance of the truth or falsity of the information, or in reckless
disregard of the truth or falsity of the information. For the purposes
of this chapter, no proof of specific intent to defraud shall be required
to establish a violation.
PROCEEDS
The treble damages and fines as provided in §
485-2, but shall not include attorneys' fees and costs.
[Amended 12-6-2011 by Ord. No. 23-11]
A. Any person who commits any of the following prohibited acts shall
be liable to the County for three times the amount of damages which
the County sustains because of such action, and shall be liable for
attorneys' fees and costs for any civil action brought to recover
such damages:
(1) Knowingly presents or causes to be presented a false claim for payment
or approval;
(2) Knowingly makes, uses or causes to be made or used a false record
or statement material to a false or fraudulent claim;
(4) Has possession, custody or control of property or money used or to
be used by the County and, intending to defraud the County or willfully
to conceal the property, delivers or causes to be delivered less property
than the amount for which the person receives a certificate or receipt;
(5) Is authorized to make or deliver a document certifying receipt of
property used or to be used by the County and, intending to defraud
the County, makes or delivers the receipt without completely knowing
that the information on the receipt is true;
(6) Knowingly buys or receives, as a pledge of an obligation or debt,
public property from an officer or employee of the County knowing
that such officer or employee lawfully may not sell or pledge the
property; or
(7) Knowingly makes, uses or causes to be made or used a false record
or statement to conceal, avoid or decrease an obligation to pay or
transmit money or property to the County.
B. The court may assess less than three times the amount of damages
sustained by the County because of the act of any individual if the
court determines that such individual has fully cooperated with any
government investigation of the violation, but in no circumstance
may the court assess less than the full amount of the damages sustained
by the County.
[Amended 12-6-2011 by Ord. No. 23-11]
A. Actions by the County Solicitor. If the County Solicitor determines that a person has violated or is violating the provisions of §
485-2, he or she may institute a civil action against that person in a court of competent jurisdiction.
B. Actions by private persons.
(1) Any person may submit a proposed civil complaint, alleging violations
of this chapter, to the County Solicitor or to such other officer
of the County whom the Chief Executive designates to investigate such
complaints. The proposed civil complaint shall be signed and verified
and shall include all material evidence and information possessed
by such person in support of the allegations in the complaint. The
County Solicitor or the officer designated by the Chief Executive
under this chapter is authorized to investigate all such complaints
and may request any additional information from the person who submitted
the proposed civil complaint, in order to investigate the allegations
set forth therein.
(2) The County Solicitor may elect to intervene and proceed with the
action within 60 days after receiving both the complaint and the material
evidence and information. The County Solicitor may extend the time
for the investigation by an additional 60 days upon provision of written
notice to the person who submitted the complaint.
(3) Before the expiration of the sixty-day period or any extension thereof,
the County Solicitor shall:
(a)
Bring a civil action, based upon the facts alleged in such complaint,
against one or more of the defendants named therein, in which case
the action shall be conducted by the County Solicitor; or
(b)
Notify the person that submitted the complaint that the County
declines to take over the action, in which case the person submitting
the case shall have the right to file and conduct the action.
(c)
If the County Solicitor elects not to proceed with the action
and so requests, he or she shall be served with copies of all pleadings
filed in the action and shall be supplied with copies of all deposition
transcripts at the County's expense. When a person proceeds with
the action, the court, without limiting the status and rights of the
person initiating the action, may nevertheless permit the County to
intervene at a later date upon a showing of good cause.
(4) Information submitted by a person in support of a complaint, and
information gathered as a result of the County Solicitor's or
other County officer's investigation of the complaint, shall
be confidential and protected from disclosure to the fullest extent
permitted under applicable law.
C. Certain actions barred. This chapter shall not apply to claims, records,
or statements made pursuant to federal, state or local tax law nor
to any proposed civil complaints:
(1) Based upon one or more false claims with a cumulative value of less
than $10,000;
(2) Publicly disclosed information.
(a)
The court shall dismiss an action or claim under this section
unless opposed by the County, if substantially the same allegations
or transactions as alleged in the action or claim were publicly disclosed
in a criminal, civil, or administrative hearing, in which the County
or any agent thereof is a party; or in a legislative or administrative
report, hearing, audit, or investigation; or by the news media, unless
the action is brought by the County Solicitor or the person bringing
the action is an original source of the information.
(b)
For the purposes of this subsection, "original source" shall
mean an individual who either:
[1]
Prior to a public disclosure under Subsection
C(2) has voluntarily disclosed to the County the information on which allegations or transactions and a claim are based; or
[2]
Has knowledge that is independent of and materially adds to
the publicly disclosed allegations or transactions, and who has voluntarily
provided the information to the County before filing an action pursuant
to the terms of this chapter.
(3) Based upon information discovered by an employee of the County, state
or federal government in the course of his or her employment unless:
(a)
Such employee first reported the information to the County;
and
(b)
The County failed to act on the information within six months
of its receipt of the information; or
(4) Against the federal government, the Commonwealth of Pennsylvania,
the County or any officer or employee of those governmental entities
acting within the scope of his or her employment. Notwithstanding
the inapplicability of this chapter to such cases, the County Solicitor
is not precluded from otherwise filing an action in such cases.
D. Nothing herein shall be construed as authorizing anyone, other than
the County Solicitor or a person or attorney designated pursuant to
this chapter, to commence a civil action to represent the County under
this chapter.
E. Related actions. Regardless of whether the County Solicitor has commenced
a civil action or another party has been designated to do so, the
County Solicitor may elect to pursue any alternative action with respect
to the presentation of false claims, provided that, if the alternative
action is based upon a proposed civil complaint submitted by any person,
such person shall be entitled to the same percentage share of any
cash proceeds recovered by the County to which that person would have
been entitled if the alternative action were a civil action.
F. Rights of the parties.
(1) If the County Solicitor elects to commence a civil action, then the
County Solicitor shall have sole authority for prosecuting and settling
the action and may move to dismiss or may settle the action, notwithstanding
the objections of the person who submitted the proposed civil complaint
upon which such civil action is based. The County Solicitor may, in
his or her discretion, file the complaint under seal and maintain
its confidentiality for a period of time as deemed necessary by the
Solicitor and permitted by the court.
(2) If a person who submitted a proposed civil complaint or his or her
attorney is conducting a civil action pursuant to the terms of this
chapter, then the person or attorney, as the case may be, may conduct
the action in the name of the County. The County Solicitor may require
such person conducting the action to file the complaint under seal,
as determined by the Solicitor. Such person may seek treble damages,
attorneys' fees and costs. However, the County Solicitor shall
have sole authority to move to dismiss the action, notwithstanding
the objection of such person, provided such person has had an opportunity
to be heard. The County Solicitor has sole authority to settle the
action, and may do so notwithstanding the objection of the person
who submitted the proposed civil complaint, if, after providing such
person with an opportunity to be heard, the court approves the settlement.
(3) The court may issue an order restricting the participation of a person
conducting a civil action under this chapter, notwithstanding the
objections of such person, if the court determines, after providing
such person an opportunity to be heard, that such person's unrestricted
participation during the course of the litigation would interfere
with or unduly delay the prosecution of the case or would be repetitious
or irrelevant, or upon a showing by the defendant that such person's
unrestricted participation, during the course of the litigation, would
be for purposes of harassment or would cause the defendant undue burden.
(4) The court may issue a stay of any civil action brought under this
chapter if the action will interfere with any investigation or prosecution
of a criminal matter arising out of the same facts or for any other
reason the court deems appropriate.
G. Award from proceeds.
(1) If the County Solicitor has elected to commence a civil action based
on a proposed civil complaint, then the person or persons who submitted
the complaint collectively shall be entitled to receive at least 10%
and no more than 25% of the proceeds recovered by the County in the
civil action or in settlement of such action.
(2) If a person or persons commence a civil action, then such person
or persons collectively shall be entitled to receive at least 15%
and no more than 30% of the proceeds recovered by the County in the
civil action or in settlement of such action.
(3) In determining the share of the proceeds to which a person submitting
a proposed civil complaint is entitled, the court may consider the
following factors:
(a)
The extent to which such person contributed to the prosecution
of the action, either in time, effort or finances;
(b)
Any unreasonable delay by such person in submitting the proposed
civil complaint;
(c)
The extent to which the allegations involve a significant safety
issue;
(d)
Whether the person has been charged with criminal conduct arising
from his or her role in the alleged violation of this chapter, in
which case such person shall not receive any share of the proceeds
of the action if convicted on the charges; and
(e)
Fundamental fairness and any other factors the court deems appropriate.
H. Attorneys' fees and costs.
(1) In the event the County prevails in a civil action, commenced pursuant
to this chapter, the County Solicitor or the person designated to
commence such action shall receive an amount for reasonable expenses
which the court finds to have been necessarily incurred, plus reasonable
attorneys' fees and costs. All such expenses, fees, and costs
shall be awarded against the defendant.
(2) The County shall not be liable for any expenses, attorneys'
fees or costs that a person or a person's attorney incurs in
submitting a proposed civil complaint or commencing or litigating
a civil action pursuant to this chapter.
Any rules adopted by the court that differ from the procedures
set forth in this chapter shall supersede the procedures set forth
herein.
In any action brought pursuant to the terms of this chapter,
the County or the person acting on behalf of the County hereunder
shall be required to prove all essential elements of the cause of
action, including damages, by a preponderance of the evidence.