Having followed Maryland’s battle to enact a Maryland False Claims Act, I can’t help but point out this article from the Washington Post.
It seems former Maryland Republican Party Chairman John Kane has been nailed under the federal False Claims Act. The allegations are that Kane’s company, and its subsidiaries (including Office Movers, Inc. and Office Installers, Inc.) fed exclusively off of federal and state government contracts, but failed to pay their employees the wages required under federal law.
Despite the failure to pay employees the wages required by law, Kane and his companies repeatedly certified that they were paying the required wages to their employees. In fact, they would not have obtained most of these contracts if they had told the truth about their compensation practices.
Here is yet another wake-up call for Maryland to pass a Maryland False Claims Act–Kane and his companies also obtained more than $2 million worth of Maryland state government contracts, and no doubt they committed the same violations of the law with regards to the state contracts. Yet Maryland will not recoup even a single dollar of the state money, because there is no Maryland False Claims Act.
What a shame, on many different levels.