Mayor Michael Bloomberg signed legislation designed to protect New York City from fraud. The legislation requires the creation of civil penalties and a private right of action for false or fraudulent claims against the City of New York.

The new law was modeled on the federal False Claims Act. The mayor said that the city loses millions of dollars every year in false medical, payroll and construction claims and that the new legislation will enable the city to recover monetary damages from those who file fraudulent claims for payment of city funds and to recover the extensive costs necessary to protect taxpayers against such fraud.

Mayor Bloomberg issued a press release on May 19, 2005.

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