Taxpayer Guide to Prosecuting False Claims in Illinois

If a private person believes that an individual has violated Section 3 of the Illinois False Claims Act, the private person may bring a civil action on behalf of themselves and the State. The action must be filed no later than 6 years after the date on which the violation was committed or no more than 3 years after the date when the State official first became aware of the violation (but in no event later than 10 years after the violation was committed), whichever occurs last.

When the private person files their complaint with the court, a copy of the complaint as well as all material evidence and information shall be served upon the State. The complaint must be filed in camera and remain sealed, even from the defendant, for at least 60 days. The State may decide whether or not to intervene and to proceed with the prosecution within this 60-day window. The State may move the court for an extension.

Once the complaint is unsealed and served upon the defendant, the defendant will have 20 days to respond to the complaint.

If the State decides to proceed with the action, then the private person will play a limited role in the proceedings. From this point forward the State shall not be bound by any actions of the private person. The State, if both the court and the Attorney General give written consent and their reasoning, may dismiss the action, but the private person is entitled to a hearing, which may be conducted in camera.

If the State abstains from participating, then the private person has the right to conduct the action. Under these circumstances, the State, if so requested, must be served with copies of all pleadings filed in the action and shall be supplied with copies of all deposition transcripts. Additionally, the State has the right to intervene at a later date if the court permits and if the State’s intervention does not limit the status and rights of the private person.

If the prosecution is successful, the defendant is penalized for violating the False Claims Act. The court imposes a penalty of anywhere between $5,000 and $10,000, plus treble damages for any injury sustained by the state as a result of the defendant’s acts. From these proceeds the private person is compensated for their effort.

Whether the private person or the State conducts the action, the private person is entitled to compensation if the action is successfully prosecuted. If the State proceeds with the action, the private person shall receive not less than 15% and not more than 25% of the proceeds of the action, depending upon the extent to which the private person contributed to the action. If the person acquired their information through a media outlet or previous litigation, then the private person is entitled to not more than 10% of the proceeds.

If the state does not proceed with the action, then the private person is entitled to receive between 25% and 30% of the proceeds. If the prosecution is successful, the private person is entitled to reimbursement for all attorney fees and all reasonable expenses incurred.

Additionally, the Illinois False Claims Act includes a whistleblower provision. Any employee whose employment status is negatively affected by bringing forward information of false claims is entitled to all relief necessary to make them whole.

The Illinois False Claims Act was based upon the federal version, which can be accessed through www.taf.com. Additionally, the City of Chicago adopted a comparable version, but with slight variations, which can also be accessed through www.taf.com.