For slightly more than a decade, the New York False Claims Act (FCA) has permitted so-called “whistleblowers” to bring actions on behalf of the state against taxpayers alleged to have filed a false claim, record, or statement under the tax law. Under an amendment recently signed into law, a whistleblower may now bring a case against an individual or entity which allegedly concealed or avoided and obligation to pay tax, regardless of whether a return or any other statement was filed. This change effectively expands the scope the tax violations under the FCA to individuals claiming that they are nonresidents of New York and business entities that believe that they have no New York filing requirements for reasons of nexus or otherwise.
In general, the FCA is intended to allow the state to recover money damages from persons and entities who knowingly present a false or fraudulent claim to the government. The amount of the recovery may be up to three times the loss sustained by the state as a result of a defendant’s fraudulent acts. The attorney general is empowered to bring these actions. However, the FCA is a whistleblower law that encourages private individuals to assist the attorney general in prosecuting these cases by offering the whistleblower a reward of up to 30% of the state’s recovery.
The Dangote Group has become aware of a publication titled “Aliko Dangote Speaks Out on Why He Distanced Himself from Tony Elumelu,” which is false, malicious, and baseless. At no time did the Pre...