SAND PIRATES UNDERPAY THE GOVERNMENT

A Whistleblower Partners attorney led the representation of a whistleblower in a qui tam action under the California False Claims Act alleging underpayments (or “reverse false claims”) under a public resource lease. Dubbed “sand pirates” by the media, the three defendants avoided mandatory payments by under-reporting the quantity of sand and gravel they removed from government property, as well as its value. California recovered $48 million in combined settlement payments and price adjustments, while the whistleblower, a tugboat captain, received an award of 30% of the government’s recovery. It was then the second-largest recovery for a whistleblower under California state law. See California Attorney General Press Release.