False Claims Act Lawsuits

Printer-friendlyPrinter-friendly EmailEmail

In the spring of 2018, the Charity & Security Network learned of several lawsuits filed in U.S. courts against nonprofit organizations (NPOs) that receive USAID funding. Using a law meant to combat fraud against the federal government by providing incentives for private citizens to act as whistleblowers (the False Claims Act), the Zionist Advocacy Center (TZAC) has alleged that three groups violated the anti-terrorist certification  in their grant agreements with USAID by providing "material support" to groups on the terrorist lists. In two of these cases, the U.S. Department of Justice (DOJ) joined the lawsuits, which were settled without trial. The third, against the Carter Center, was dismissed at the request of DOJ. TZAC says it has filed two additional cases against international NGOs. They are currently under seal. 

Resources:

Issue Brief: False Claim Act Lawsuits What Nonprofits Need to Know  Nov. 19, 2018

Fact Sheet:: Nonprofits with USAID Funding May Be Vulnerable to Federal Lawsuits Sept. 26, 2018

Webinar Recording and Slides: False Claims Act Lawsuits Against NGOs: What Nonprofits Need to Know  Oct. 9, 2018

 

News:

Intimidation Campaign Using False Claims Act and IRS to Push Problematic Enforcement Policy on NGOs  Sept. 27, 2018

Norwegian People's Aid Settles Enforcement Case over Democracy Building and Mine Removal Projects US Says Were Material Support  April 18, 2018

Suit Alleging Carter Center Provided Material Support Dismissed  June 12, 2018

DOJ Asks Court to Dismiss Whistleblower Case Accusing the Carter Center fo Material Support  May 16, 2018