{"id":8040,"date":"2020-08-24T12:18:05","date_gmt":"2020-08-24T16:18:05","guid":{"rendered":"https:\/\/charityandsecurity.org\/?p=8040"},"modified":"2021-09-13T15:24:03","modified_gmt":"2021-09-13T19:24:03","slug":"tzac-carter-center","status":"publish","type":"post","link":"https:\/\/charityandsecurity.org\/litigation\/tzac-carter-center\/","title":{"rendered":"USA ex rel. TZAC, Inc. v. The Carter Center, Inc."},"content":{"rendered":"
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In this False Claims Act lawsuit, the Zionist Advocacy Center alleged that the Carter Center provided material support to terrorist groups, contrary to its USAID certification, when it included Hamas and the Popular Front for the Liberation of Palestine as part of various conflict resolution meetings. After the case was unsealed in 2017, the U.S. Department of Justice moved to dismiss the case. In May 2018, the court granted the motion and dismissed it. This case raised issues around the U.S. Supreme Court\u2019s 2010 decision in\u00a0Holder v. Humanitarian Law Project,<\/a>\u00a0<\/em>which said Congress can prohibit services and technical advice and assistance as material support of terrorism, even when it is intended to reduce conflict.<\/p>\r\n\r\n\r\n

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Case Summary<\/h2>\r\n\r\n\r\n\r\n

In November 2015 the Zionist Advocacy Center (TZAC) filed a\u00a0complaint<\/a>\u00a0against the Carter Center under the U.S.\u00a0False Claims Act (FCA)<\/a>, which allows whistleblowers to seek enforcement of U.S. law. The case, United States of America ex rel TZAC v. the Carter Center, Case: 1:15-cv-02001, was filed in the U.S. District Court for the District of Columbia. The complaint alleged that by hosting conflict resolution meetings attended by Hamas and the Popular Front for the Liberation of Palestine (PFLP), both designated as terrorist groups by the U.S., and serving water, fruit and cookies, the Carter Center provided material support to terrorist groups, contrary to a certification it made to USAID. The Department of Justice (DOJ) moved to dismiss the case<\/a>, saying that TZAC\u2019s claims \u201care without legal basis\u2026\u201d On May 31, 2018 the U.S. District Court in Washington, DC\u00a0granted the motion<\/a>\u00a0and the case was dismissed.<\/p>\r\n

TZAC\u2019s legal argument was that the Carter Center, a USAID grantee, defrauded the government because it falsely certified in its grant agreement it had not provided material support to listed groups. The complaint did not allege that USAID funds were used to support the meetings TZAC cited. TZAC said the Carter Center received over $30 million from USAID between 2010 and 2015 and should pay $91,716,000, plus costs and \u201can appropriate award\u201d to TZAC.<\/p>\r\n<\/div>\r\n\r\n\r\n\r\n

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False Claims Act Basics<\/span><\/h3>\r\n\r\n\r\n\r\n

The False Claims Act is\u00a0a U.S. law that imposes liability on those that knowingly defraud government programs. Private parties, called \u201crelators,\u201d can bring these suits on the government\u2019s behalf. Complaints filed under the FCA are automatically sealed for 60 days while the government investigates the claims and decides whether or not they merit further action. During this time the defendant (and the public) has no notice that a case has been filed. The court can extend the sealing period for months or even years.<\/p>\r\n\r\n\r\n\r\n

Once the government has investigated the claims, it may choose to:<\/p>\r\n\r\n\r\n\r\n

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  1. join the lawsuit,\u00a0<\/li>\r\n
  2. ask that the case be dismissed or\u00a0<\/li>\r\n
  3. allow the complaining party to proceed on their own.<\/li>\r\n<\/ol>\r\n\r\n\r\n\r\n

    For more information see our Issue Brief: False Claims Act Lawsuits: What Nonprofits Need to Know<\/a><\/p>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n

    Allegations in the Complaint<\/h2>\r\n

    The specific allegations of material support in TZAC\u2019s complaint<\/a> are centered around speech-related activities: a May 2015 meeting in Ramallah and various other \u201cmeetings, workshops, round-table discussions and private consultations.\u201d<\/p>\r\n

    At the Ramallah meeting the Carter Center hosted representatives of various Palestinian political parties, including Hamas and the PFLP, at its facility. A picture from the meeting included in the complaint shows water bottles, fruit and cookies at the meeting table. TZAC alleges the meeting constituted prohibited material support of terrorism because:<\/p>\r\n