Brooklyn, NY – A federal judge has refused to step aside from a long-running whistleblower lawsuit accusing New York City of defrauding federal benefit programs, denying a relator’s attempt to disqualify her and a magistrate judge from hearing the case.
Joel Mahl, a former administrative law judge, filed the False Claims Act suit in 2012, alleging the city improperly sought federal funds from Medicaid, Temporary Assistance for Needy Families (TANF), and the Supplemental Nutrition Assistance Program (SNAP). The United States declined to intervene in 2021, leaving Mahl to pursue the case on his own.
Mahl, who is an attorney but not permitted to represent himself in a False Claims Act matter, has struggled to obtain substitute counsel after his lawyer died. He has repeatedly sought extensions of time to serve the city and advance the case, with Magistrate Judge Peggy Kuo granting multiple delays between 2021 and 2023.
Earlier this year, Mahl filed his second motion to recuse both Judge Margo K. Brodie and Judge Kuo, arguing they could not fairly preside over the case. In a ruling issued Monday, Judge Brodie denied the motion, writing that no grounds existed for disqualification.
The decision means the nearly 13-year-old case remains before the same judges as it moves forward. With co-plaintiffs Avika Tessler and John Vesey having withdrawn last year, Mahl is the sole relator pressing the claims on behalf of the United States.
Key Points
- Judge Margo Brodie denied relator Joel Mahl’s second motion to recuse her and Magistrate Judge Peggy Kuo.
- Mahl’s False Claims Act case accuses New York City of defrauding Medicaid, TANF, and SNAP.
- The United States declined to intervene in 2021, leaving Mahl to proceed largely on his own.
A whistleblower’s case may be aging, but the court isn’t changing hands.
