Take Away: California has recovered over $2 billion under the State’s False Claims Act since 2001, according to data obtained from the State Attorney General’s Office.

Enacted in 1987, the California False Claims Act (“CAFCA”) is one of the oldest qui tam statutes in the country. [1]

The CAFCA empowers private citizens (called “relators”) to file suit against any person or business that “[k]nowingly presents or causes to be presented [to the state or any political subdivision] . . . a false claim for payment or approval.” [2] CAFCA actions may also be initiated by California’s Attorney General or by the prosecuting authority for a political subdivision. [3]  Violators of the Act are liable to the State for treble damages and civil penalties. [4]

To encourage whistleblowing, the CAFCA rewards successful relators with up to 50% of the State’s recovery. [5] The size of the “relator’s share” typically depends on whether the relator or the State prosecutes the case. [6] The relator’s share may be reduced if the relator participated in the fraud. [7]

Data recently obtained from the State Attorney General’s Office reveals that the CAFCA has yielded large recoveries for the Golden State. [8]

Over two decades, California has recovered $2,016,366,278.61 under the CAFCA. Private citizens have originated nearly all CAFCA cases. In fact, the State Attorney General has brought only three CAFCA actions since 2005.

Nearly $197 million of the recovered funds was deposited into the “False Claims Act Fund,” which supports ongoing investigations and prosecutions by California’s Medicaid Fraud Control Unit (MFCU). [9]

In Federal Fiscal Year (“FY”) 2021, which runs from October 1 through September 30, California’s MFCU had 1,472 open cases.

At the end of FY 2021, California’s MFCU was staffed by 186 individuals, including 49 attorneys.

[1] Cal. Gov. Code §§ 12650 to 12656.

[2] Cal. Gov. Code §§ 12651(a)(1), 12652(c)(1).

[3] Cal. Gov. Code § 12652(a)(1) and (b)(1)

[4] Cal. Gov. Code § 12651(a)(1).

[5] Cal. Gov. Code § 12652(g)(2)‒(5).

[6] Id.

[7] Cal. Gov. Code § § 12652(g)(5).

[8] The author obtained this data under the  California Public Records Act.

[9] Cal. Gov. Code § 12652(j).