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Whistleblower Denied Bounty in Alleged Illinois Sales Tax Fraud

March 10, 2021, 9:56 PM

A whistleblower can’t claim a portion of a tax settlement between Illinois and an online retailer because the state’s audit preceded the whistleblower’s complaint and the state hadn’t engaged in fraud or bad faith, a state appeals court ruled.

A three-judge panel of the Illinois Appellate Court dismissed a whistleblower’s demand for part of a $2.1 million tax settlement reached in 2019 between the Illinois Department of Revenue and Fanatics Inc., an online seller of licensed sports apparel and collectibles. The initial complaint, filed under the Illinois False Claims Act and brought by attorney Matthew Hurst,