Partner Randall Fox quoted in Law360 article discussing newly-expanded New York tax whistleblower law signed by Governor Kathy Hochul

KM Partner Randall Fox is quoted in a Law360 article discussing the recent expansion of tax-related whistleblower cases under the New York False Claims Act, now allowing for cases to be brought against wealthy individuals and businesses that do not file New York tax returns and pay New York taxes they owe.  Previously, such non-filers could escape liability because the statute applied only where a whistleblower could point to specific false statements or records related to tax obligations.

Fox described that the importance of the amendment is that it will lead to enforcement against non-filers who are notoriously difficult to find through the traditional audit process: “if tax audits are akin to finding a needle in a haystack, ‘here, you don’t even have a haystack.’”

Whistleblower Tips Critical for Regulators Seeking to Minimize Misconduct in Opaque Cryptocurrency Markets 

The crypto space has seen a lot of publicity these days.  The catastrophe which is the FTX bankruptcy highlights the cryptocurrency market’s susceptibility to fraud given its unregulated nature, and the fact that much of it is ostensibly overseas and otherwise opaque in its mechanics.  In the face of this, investors are susceptible to exploitation and losses.  In the case of FTX, investors and creditors are owed billions of dollars according to initial filings in the bankruptcy proceedings.  FTX may be just the start of things.

Partner Randall Fox authors an article on NY’s correct treatment of the False Claims Act’s knowledge element, an issue now before the U.S. Supreme Court

KM partner Randall Fox has published an article in Law360 discussing how New York has already decided an issue about the “knowledge” element of the False Claims Act that will be argued next month before the U.S. Supreme Court. In the Sprint case under the New York False Claims Act, New York’s high court ruled in 2015 that the knowledge element depends upon a defendant’s contemporaneous understanding of the applicable rules. In the cases now before the Supreme Court, the defendants are arguing that they can instead rely on interpretations asserted for the first time after the False Claims Act case was filed.