ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
Home Uncategorized

Florida federal court holds False Claims Act qui tam provision is unconstitutional

November 1, 2024
Reading Time: 3 mins read
Florida federal court holds False Claims Act qui tam provision is unconstitutional

Qui tam provision
United States ex rel. Zafirov v. Florida Medical Associates
Date: Sept. 30, 2024

Issue: Whether the qui tam provision of the False Claims Act (FCA) violates the Appointments Clause in Article II of the U.S. Constitution.

Case Summary: A Florida federal court ruled the qui tam provision of the FCA is unconstitutional under the Appointments Clause in Article II of the U.S. Constitution.

The qui tam provision is a part of the FCA which allows whistleblowers to sue on behalf of the United States for fraud. As a relator, Clarissa Zafirov prosecuted various corporate entities on behalf of the United States. Zafirov determined which defendants to sue, which theories to raise, which motions to file, and which evidence to obtain. Instead of being appointed to the office of relator by a president, department head, or court of law, she relied on the FCA’s qui tam provision to appoint herself.

In 2019, Zafirov sued her employer, Florida Medical Associates, alleging it violated the FCA by misrepresenting patients’ medical conditions to Medicare. Zafirov never asserted the defendants’ allegedly illegal conduct harmed her. Instead, like a United States attorney, Zafirov sued on behalf of the United States of America. After the government declined to intervene, Zafirov litigated the action on behalf of the United States for the next five years. The defendants argued the FCA’s qui tam provision violates Article II’s Appointments Clause, Take Care Clause, and Vesting Clause.

Judge Kathryn Kimball Mizelle of the Middle District of Florida granted the defendants’ motion for judgment on the pleadings and dismissed the case with prejudice. According to the court, for a person to wield executive authority, he or she falls under the Appointments Clause. This means the person must have been either appointed by the president and confirmed by the Senate (executive officer), or appointed by either the president, the courts of law or a head of a department (inferior officer). This ensures executive power is used in a responsible manner, and the president remains accountable for how executive power is carried out. As established in Buckley v. Valeo, there are two elements that must be satisfied to determine whether an official’s position falls under the Appointments Clause.

The first element for the Appointments Clause is determining whether Zafirov, as a FCA relator, “exercises significant authority pursuant to the laws of the United States.” Zafirov conducted civil litigation in federal court and held parties accountable for their violations of public rights. Zafirov’s exercise in litigating these issues demonstrated that she granted remedies to affected parties who suffered from violations of federal law. The court concluded Zafirov wielded significant authority by utilizing executive power and satisfied the first element.

The second element for the Appointments Clause is that Zafirov must occupy a “continuing position established by law.” As an FCA relator, Zafirov adhered to the FCA’s definitions of her statutory duties and powers. Importantly, the district court determined the office of an FCA relator is a continuous and permanent office like an attorney general or independent prosecutor. Zafirov possessed the authority to self-appoint as a special prosecutor to recover punitive damages. As a result, the court determined Zafirov’s position is continuous, satisfying the second element.

Since both Appointments Clause elements were satisfied, Zafirov operated as an officer of the United States. This means she exercised “core executive power” as demonstrated by her actions in suing on behalf of the United States for fraudulent claims to the federal government. However, Zafirov was not appointed to this role by any higher executive officer. For this reason, the district court determined the FCA’s qui tam provision unconstitutionally granted Zafirov executive authority, and she lacks proper appointment.

Bottom Line: As of Nov. 1, 2024, Zafirov has not appealed the district court’s decision.

Document: Order

Tags: Banking Docket
ShareTweetPin

Related Posts

ABA files coalition amicus brief arguing FDIC’s CMP against CBW Bank violates Jarkesy

Seventh Circuit upholds FDIC’s in-house enforcement process

Uncategorized
September 1, 2026

In a unanimous decision, a Seventh Circuit panel ruled that the FDIC did not violate the Seventh Amendment by adjudicating an enforcement action seeking a prohibition order and civil money penalty.

Fifth Circuit rules SEC must fix stock buyback rule

Tenth Circuit affirms dismissal of APA challenge to SEC enforcement action

Uncategorized
September 1, 2026

A unanimous Tenth Circuit panel affirmed the dismissal of a lawsuit challenging the SEC’s enforcement of federal anti-money laundering reporting requirements against an affiliate.

FDIC posts sample docs to provide clarity into marketing, sale process of failing banks

Second Circuit rules AP7 has prudential standing to pursue Signature Bank securities claims

Uncategorized
September 1, 2026

In a unanimous decision, a Second Circuit panel vacated a New York federal court decision ruling that Sjunde AP-Fonden (AP7) lacked prudential standing to pursue securities fraud claims against KPMG and former Signature Bank officers.

OCC releases Q3 bank trading revenue report

Nine states sue OCC over escrow powers and preemption rules

Uncategorized
September 1, 2026

Nine states sued the OCC, alleging it exceeded its authority and violated the APA by issuing its Escrow Powers and Preemption Rules.

Eastern District of Michigan dismisses $2 million wire fraud suit against Fifth Third Bank

Eastern District of Michigan dismisses $2 million wire fraud suit against Fifth Third Bank

Uncategorized
September 1, 2026

The court refused to hold Fifth Third Bank liable for the wire fraud because Hegira could not identify any agreed-upon security procedure that the bank handled in a commercially unreasonable manner or failed to follow in good faith.

CFPB issues interim final rule for Libor transition

Ninth Circuit rules fixed dividend rate can serve as LIBOR Act benchmark replacement

Uncategorized
September 1, 2026

The Ninth Circuit reversed and remanded, ruling that the LIBOR Act does not require a floating replacement rate and permits a contract’s fixed-rate fallback to serve as a valid benchmark replacement when LIBOR is unavailable.

NEWSBYTES

IRS to issue final rule on auto loan deduction

September 4, 2026

Consumers share experiences with AI-enabled scams

September 4, 2026

Bank survey finds most middle-income renters view homeownership as out of reach

September 4, 2026

SPONSORED CONTENT

Taming AI Agent Sprawl: A Playbook for Consumer Lending

Taming AI Agent Sprawl: A Playbook for Consumer Lending

September 1, 2026
Grow Public Deposits Without the Operational Burden End Fragment

Grow Public Deposits Without the Operational Burden End Fragment

September 1, 2026
Could Your Bank Absorb the Hidden Cost of Running Legacy Systems?

Could Your Bank Absorb the Hidden Cost of Running Legacy Systems?

August 20, 2026
Why Your Systems Keep Slowing Down — and What to Do About It

The exam question a backup can’t answer

August 18, 2026

PODCASTS

Podcast: Banking the brave new world of college athletics

August 4, 2026

Podcast: Tactics for meaningful strategic planning

July 28, 2026

Podcast: Why it might be time to revisit a key FDIC ratio

July 23, 2026

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2026 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2026 American Bankers Association. All rights reserved.