§ 1-607. False claims; acts subjecting persons to liability for treble damages; costs and civil penalties; exceptions. - North Carolina Statutes

§ 1‑607.  False claims;acts subjecting persons to liability for treble damages; costs and civilpenalties; exceptions.

(a)        Liability. – Anyperson who commits any of the following acts shall be liable to the State forthree times the amount of damages that the State sustains because of the act ofthat person. A person who commits any of the following acts also shall beliable to the State for the costs of a civil action brought to recover any ofthose penalties or damages and shall be liable to the State for a civil penaltyof not less than five thousand five hundred dollars ($5,500) and not more thaneleven thousand dollars ($11,000) for each violation:

(1)        Knowingly presentsor causes to be presented a false or fraudulent claim for payment or approval.

(2)        Knowingly makes,uses, or causes to be made or used, a false record or statement material to afalse or fraudulent claim.

(3)        Conspires to commita violation of subdivision (1), (2), (4), (5), (6), or (7) of this section.

(4)        Has possession,custody, or control of property or money used or to be used by the State andknowingly delivers or causes to be delivered less than all of that money orproperty.

(5)        Is authorized tomake or deliver a document certifying receipt of property used or to be used bythe State and, intending to defraud the State, makes or delivers the receiptwithout completely knowing that the information on the receipt is true.

(6)        Knowingly buys, orreceives as a pledge of an obligation or debt, public property from any officeror employee of the State who lawfully may not sell or pledge the property.

(7)        Knowingly makes,uses, or causes to be made or used, a false record or statement material to anobligation to pay or transmit money or property to the State, or knowinglyconceals or knowingly and improperly avoids or decreases an obligation to payor transmit money or property to the State.

(b)        Damages Limitation.– Notwithstanding the provisions of subsection (a) of this section, the courtmay limit the damages assessed under subsection (a) of this section to not lessthan two times the amount of damages that the State sustains because of the actof the person described in that subsection and may assess no civil penalty ifthe court finds all of the following:

(1)        The personcommitting the violation furnished officials of the State who are responsiblefor investigating false claims violations with all information known to thatperson about the violation within 30 days after the date on which the personfirst obtained the information.

(2)        The person fullycooperated with any investigation of the violation by the State.

(3)        At the time theperson furnished the State with information about the violation, no criminalprosecution, civil action, or administrative action has commenced with respectto the violation, and the person did not have actual knowledge of the existenceof an investigation into the violation.

(c)        Exclusion. – Thissection does not apply to claims, records, or statements made under Chapter 105of the General Statutes.  (2009‑554, s. 1.)