United States ex rel. Rakow v. Pro Builders Corp.

MEMORANDUM *

Relator Lee Rakow (“Rakow”) alleged that Pro Builders Corporation (“Pro Builders”) violated the False Claims Act (“FCA”) by falsely certifying compliance with its building contract and federal labor law in order to receive payment from the federal government. The district court *931 granted summary judgment in favor of Pro Builders because (1) Pro Builders’s certification of compliance was not a prerequisite to payment; and (2) Rakow adduced no evidence that Pro Builders knowingly submitted false certifications. We have jurisdiction under 28 U.S.C. § 1291 , and we affirm the district court’s decision on the latter ground.

The FCA imposes liability only on those who “knowingly” present a false claim to the government. 31 U.S.C. § 3729 (a)(1). For purposes of the FCA, “knowingly” means: (1) actual knowledge of the information; (2) deliberate ignorance of the truth or falsity of the information; or (3) reckless disregard of the truth or falsity of the information. 31 U.S.C. § 3729 (b). This broad definition of “knowingly” requires “simple inquiries which would alert” a prudent individual “that false claims are being submitted.” See Sen. Rep. No. 99-345 reprinted in…

concurring.

I concur in the ultimate result dismissing Rakow’s case but would base dismissal on lack of jurisdiction because Rakow was not the “original source.” See 31 U.S.C. § 3730 (e)(4)(B).