Qui Tam

Limo service company settles False Claims Act Case for $65,000

By Brian F. LaBovick

In an unusual turn of events, a Massachusetts based  Limo company agreed to pay $65,000 to settle a qui tam case for improperly paying tolls. According to an article in Worcester Telegram & Gazette's telegram.com, the Limo company, allegedly made drivers use personal toll transponders linked to Boston addresses to pay 40-cent resident discount tolls to avoid the $4.50 commercial tunnel toll.  The company agreed to pay the Turnpike Authority $32,500 for avoided tolls and also pay the state another $32,500 in penalties. The settlement specifically provides for the company to continue using commercial Fast Lane automatic toll payment transponders for its business.

The Toll Authorities identified the improper use of the transponders by using video cameras to match transponder signals to pictures of cars going through the Fast Lane toll booths, according to court documents. The complaint was based on the state’s False Claims Act that allows the state to collect damages from those who knowingly underpay for state services. Massachusetts is among 21 states that have passed a State False Claims Act that is similar to the Federal False Claims Act. The states that have passed a State False Claims Act Statute include: California, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Louisiana, Massachusetts, Michigan, Montana, Nevada, New Hampshire, New Mexico, New York, Oklahoma, Tennessee, Texas, Virginia, New Jersey and the District of Columbia.

Click here to read more about the Limo company's qui tam settlement from telegram.com
Click here to read more about the 21 states with a state False Claims act for qui tam related cases from Tafnet.org

Full post as published by Whistleblower Law Blog on January 15, 2008 (boomark / email).