§ 1.60.100. Liability for false claims and knowing failure to make required payments.

A.

False claims and failure to make required payments penalized. Subject to the provisions of subsection B. of this section, a person shall be liable to the municipality for a civil penalty of not less than $2,000.00 and not more than $10,000.00, plus three times the amount of all damages, including consequential damages, which the municipality sustains because of the act(s) of that person who:

1.

Knowingly presents, or 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 a false or fraudulent claim;

3.

Conspires to commit a violation of subsection A.1., A.2., A.4., A.5., A.6., or A.7. of this section;

4.

Has possession, custody, or control of property or money used, or to be used, by the municipality and knowingly delivers, or causes to be delivered, less than all of that money or property;

5.

Is authorized to make or deliver a document certifying receipt of property used, or to be used, by the municipality and, intending to defraud the municipality, makes or delivers the receipt without completely knowing that the information on the receipt is true;

6.

Knowingly buys, or receives as a pledge of an obligation or debt, public property from an officer or employee of the municipality knowing that the officer or employee violates a provision of law when selling or pledging such property; for purposes of this subsection A.6., an "obligation" can be an obligation of any person and does not have to be an obligation of the person who knowingly makes, uses, or causes to be made or used, a false record or statement material to such obligation to pay or transmit money or property to the municipality;

7.

Knowingly makes, uses, or causes to be made or used, a false record or statement material to an obligation to pay or transmit money or property to the municipality; or

8.

Knowingly conceals or knowingly and improperly avoids or decreases an obligation to pay or transmit money or property to the municipality, or conspires to do the same; for purposes of this subsection A.8., an "obligation" can be an obligation of any person and does not have to be an obligation of the person who knowingly conceals or who knowingly and improperly avoids or decreases such obligation to pay or transmit money or property to the municipality, or who conspires to do the same.

B.

Reduction in damages for cooperation. A court may assess not more than two times the amount of damages sustained because of the act of the person described in subsection A., if the court finds that:

1.

The person committing the violation of this section had furnished all information known to such person about the violation, to those officials responsible for investigating false claims violations on behalf of the municipality, within 30 days after the date on which such person first obtained the information;

2.

Such person fully cooperated with any government investigation of such violation; and

3.

At the time such person furnished information about the violation, no criminal prosecution, civil action, or administrative action had commenced with respect to such violation, or the person did not have actual knowledge of the existence of an investigation into such violation.

C.

Application of the damage multiplier. The municipality's damages shall be trebled or doubled pursuant to this section before any subtractions are made for compensatory payments received by the municipality from any source, including but not limited to the defendant, or before any subtractions are otherwise made because of any offset or credit received by the municipality from any source, including but not limited to the defendant.

D.

Exclusion of tax claims under $10,000.00 and property tax claims.

1.

This section shall apply to claims, records, or statements made under Title 12 of this Code or failure to remit taxes, only if the damages pleaded in such action exceed $10,000.00.

2.

This section shall not apply to the failure to remit property taxes.

( AO No. 2016-48, § 1, 5-10-16 )