Last session, LD 1741  S.P. 658 An Act To Encourage Reporting of Potential Fraud, Waste, Inefficiency and Abuse in State Government was passed. It served to assure confidentiality to "whistleblowers" in order to encourage them to come forward without being penalized (in theory).

There is another incentive in use at the Federal level (False Claims Act) which Maine should adopt - often referred to as "Qui Tam".

Certainly there would also be benefit to be derived from replicating the Federal False Claims Act here in Maine.

Qui Tam ("who sues on behalf of the king as well as for himself") is a provision of the Federal Civil False Claims Act that allows a private citizen to file a suit in the name of the U.S. Government charging fraud by government contractors and other entities who receive or use government funds, and share in any money recovered.

Qui tam has been, and continues to be, a very effective and successful tool in combating government procurement and program fraud. Bolstered by amendments passed by Congress in 1986, this law has armed private citizens, who have independent and direct knowledge of fraud, with a weapon to prosecute government contractors, and others who are defrauding the Government, and share in the recovery.

See also Qui Tam Whistleblower

Source: http://www.quitam.com/

Something along these lines would provide a more complete shield against fraud whether it comes at the State or the Federal level of program services and operations.

The reason the State should enact it's own version of qui tam is because the courts have often held that state entities are exempt from the provisions of these Federal laws constitutionally. So if a State employee or a State contractor was ripping off the State, they couldn't be prosecuted under the Federal laws. Additionally, if a municipality or other political subdivision was defrauding the State OR the Fed on programs or fees, the Federal FCA wouldn't apply. Qui tam provides a financial incentive for insiders to come forward with suspicions of frauds.

See also Civil False Claims/Qui Tam

See also HHS_OIG Issues Guidance on Requirements for State Qui Tam Laws

see also 22 MRSA DHHS §15. Civil liability of persons making false claims

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    Any person, firm, association, partnership, corporation or other legal entity who makes or causes to be made or presents or causes to be presented for payment or approval any claim upon or against the department or upon any funds administered by the department, knowing such claim to be false, fictitious or fraudulent or who, for the purpose of obtaining or aiding another to obtain the payment or approval of such a claim, makes any false written statement or submits any false document that the person does not believe to be true, or who enters into any agreement, combination or conspiracy to defraud the department by obtaining the payment or approval of any false, fictitious or fraudulent claim, shall, in addition to any criminal liability that may be provided by law, be subject to civil suit by this State in the Superior Court for recovery of civil penalties to include the following:

1. Restitution. Restitution for all excess benefits or payments made;
2. Payment of interest. Payment of interest on the amount of the excess benefits or payments as set forth in subsection 1 at the maximum legal rate in effect on the date the payment was made and computed for the date payment was made to the date on which repayment is made;
3. Payment of civil penalties. Payment of civil penalties, without regard to the amount in controversy, in an amount which is threefold the amount of such excess benefits or payments as set forth in subsection 1, but in any case not less than $2,000 for each false claim for assistance, benefits or payments, or for each document submitted in support of such false claim, whichever is the greater amount;
4. Cost of the suit. Cost of the suit;
5. Costs of investigation. Costs of investigation; and
6. Attorney's fees. Attorney's fees.

see also 5 MRSA Chapter 9 - ATTORNEY GENERAL §200-C State Fraud Division

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§200-C. State Fraud Division

1. Establishment. The Attorney General is authorized to create a State Fraud Division, hereinafter referred to in this section as the "division," within the Department of the Attorney General.

2. Purpose. The purpose of the division shall be to investigate and prosecute, including actions for civil recovery, any act of fraud or attempted fraud perpetrated against the State or any department, agency or commission thereof. The division shall not have primary responsibility for the investigation of any act of fraud or attempted fraud or incident of commingling or misapplication of funds pursuant to Title 22, section 13, subsection 2.

3. Cooperation, information. All agencies of the State and municipal governments shall cooperate fully with the division, rendering any assistance requested by the division. Every head of a department, bureau, division, commission or any other unit of State Government shall report in writing to the division any suspected act of fraud or attempted fraud or violation of any law in connection with funds of the State. Any such act or violation involving funds administered by the Department of Health and Human Services shall be reported pursuant to Title 22, section 13, subsection 3.

All information in the files of any department, commission or agency of State Government, regardless of any statute relating to confidentiality, shall be available to the division for use in connection with its official purpose.

http://kaycen.org/watchdog/uploads/Qui Tam Legislation/index.htm
Documentation Presented at Public Hearing on LD303 by WatchDog

• False Claims Act 31 U.S.C. §3729
• Stages of a Qui Tam Lawsuit
• HHS OIG Issues Guidance on Requirements for State Qui Tam Laws (10% extra for HHS)
• Fried Frank Website - extensive outline of False Claims Act information with links to more information
• Fried Frank Government Contracts Alert Nov-Dec2006
• Justice Department Recoveries
• Vermont Natural Resources v USA-Stevens