ASSEMBLY PASSES CONAWAY/GREENWALD MEASURE TO COMBAT FALSE CLAIMS AGAINST STATE

(TRENTON) – The Assembly today voted in favor of legislation Assemblymen Herb Conaway Jr., and Louis D. Greenwald sponsored to combat the filing of fraudulent claims against the state.

“False and frivolous claims have cost New Jersey taxpayers untold millions of dollars,” said Conaway (D-Burlington). “Money illegally gained from bogus lawsuits robs our state of taxpayer funds that might otherwise be used for essential programs.”

Under the measure (S-360/1829/A-3428/2186) – the “New Jersey False Claims Act” – any person who knowingly files a false claim for purposes of deceiving the state out of taxpayer funds would face stiffer penalties – up to $11,000 for each claim. Any individual would be permitted to seek civil action against a fraudulent claims filer. The bill provides that any such civil action be forwarded to the Attorney General, who would have 60 days to decide whether to proceed with a criminal prosecution.

“Our system has emboldened con artists to file false claims against the state without fear of prosecution,” said Greenwald (D-Camden). “By allowing the Attorney General to aggressively pursue legal action against these individuals, we will be able to ensure tax dollars do not end up in the pockets of hucksters.”

The bill also is sponsored by Assemblymen Neil Cohen (D-Union), Louis Manzo (D-Hudson), and Reed Gusciora (D-Mercer).

The Assembly voted 79 to 0 with 0 abstentions. Following a Senate vote scheduled for later today to concur with changes made to the bill by the Assembly, the measure would head to the Governor for his signature, veto, or conditional veto.

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