False Claims Act Customs Fraud CLE Discusses Whistleblower Opportunities
Associate Courtney Finerty-Stelzner serves as the Chair of the New York State Bar Association (“NYSBA”), Commercial and Federal Litigation Section, Civil Prosecution Committee. In that role, Ms. Finerty-Stelzner organized and moderated a Continuing Legal Education Program titled “Using the False Claims Act to Fight Customs Fraud: What You Need to Know.” The CLE featured speakers Li Yu and Ellen London, two former Assistant United States Attorneys, who recently authored a Law360 article on the subject.
The False Claims Act is a statute that the government and private entities or individuals can use to file suit against those who are defrauding the government. When entities or individuals file suit under the False Claims Act, they do so on behalf of the government in what is called a “qui tam” action. An entity or individual who files a qui tam action – known as the “relator” or “whistleblower” – may receive a portion of the government’s recovery. In the customs fraud context, the False Claims Act is an avenue for individuals and businesses to alert U.S. Customs and Border Protection to customs duty evasion and ensure that companies playing by the rules are not put at a competitive disadvantage by those breaking the law.
During the CLE, Mr. Yu and Ms. London addressed the basics of customs duty collection; common customs fraud schemes; how different types of whistleblowers can use the False Claims Act to expose customs fraud; recent case developments; and practice suggestions for attorneys pursuing and defending customs fraud cases. A recording of the CLE is available on NYSBA’s website.