Whistleblowers to get paid under New Minnesota "false claims" Law

People with inside knowledge about fraud perpetrated against the state of Minnesota have a new incentive to speak up: cash.

Under a new law establishing a "false claims" civil action, whistleblowers who help the state get money back from unscrupulous contractors are entitled to a 15 to 30 percent cut. Lawmakers hope that the measure will reduce fraud and increase badly needed revenue without raising taxes.

"It's the recovery of stolen taxpayer dollars," said Sen. Ron Latz, who championed the bill along with fellow St. Louis Park DFLer Rep. Steve Simon. "If other states' experiences are comparable, we could be looking at tens of millions of dollars."

The federal False Claims Act has been on the books since the Civil War, when it was used to stop war profiteers from defrauding the government.