The lawyers and attorneys at our firm are currently offering free consultations to anyone with knowledge of government contractor fraud. Federal contracts present endless opportunities to defraud the government, and this type of fraud is difficult to uncover without the help of a Whistleblower. Often, such Whistleblowers are employed by the fraudulent contractor and face a serious threat of retaliation. Our Whistleblower lawsuit lawyers can help people in this situation insure that their rights are protected.
The False Claims Act can be used to help the government punish violators and seek recovery. Fraud by defense contractors is perhaps the most common type of government contractor fraud. However the False Claims Act can be used to combat fraudulent activity across a wide array of industries and sectors.
Types of Government Contractor Fraud
There are various ways government contractors can defraud taxpayers. Procurement fraud, contrast compliance violations and other schemes are commonly used by contractors to cheat taxpayers. Our Whistleblower lawyers have helped people expose many types of government contractor fraud.
Procurement Fraud: Procurement refers to the process by which the government buys goods or services from contractors. The federal government buys millions of dollars in goods and services each year. Traditional procurement fraud cases include delivering goods of inferior quality or in violation of inspection, testing, or other technical requirements. Deceptively charging the government higher labor rates than a contract calls for, false billing and collusive billing schemes between contractors are also considered procurement fraud.
Contract Compliance Violations: When the certification of regulatory and statutory compliance necessary to obtain a contract is false, claims for payment under that contract may violate the False Claims Act. Similarly, a contractor may violate the False Claims Act by failing to meet contract performance requirements or failing to provide goods and services in conformance with federal statutes and regulations included within federal government contracts.
Labor, Environmental, Anti-Kickback, and Competitive Bidding Violations: The False Claims Act is an enforcement device for contract terms requiring compliance with other federal laws. Government contractors must abide by certain public policies like environmental protection laws, equal employment opportunity, small business procurements, federal wage laws, and competitive bidding laws.
Defense Contractor Fraud
Defense Contractors are among the entities most often accused of defrauding the government. In fact, the False Claims Act was originally enacted to fight defense contractor fraud. At the urging of Abraham Lincoln, Congress enacted the Civil False Claims Act, including Qui Tam provisions, as a tool to fight fraud after contractors supplied Civil War soldiers with inferior supplies. Our Whistleblower lawsuit lawyers have experience with defense contractor fraud, and we can make sure that Whistleblowers are adequately compensated for the risks they take.
Cross charging is one of the most common types of defense contractor fraud. When this occurs, a company may have one contract that is a “fixed price” contract, i.e., where the company receives a fixed price for a certain number of weapons no matter how much it costs to produce them. The company also may have another contract that is a “cost plus” contract, where the government pays the company for the cost of making the weapons, plus a percentage of its costs as a profit. When this situation exists, the contractor may instruct its employees to charge their time to the more lucrative cost-plus contract, even when they are performing work for the fixed-price agreement. Employees may be afraid to reveal this type of fraud, as it could cost them their jobs. But our Whistleblower lawsuit lawyers will make sure that people in this situation receive the full level of protection allowed by the False Claims Act.
Product substitution occurs when a defense contractor passes off lower quality goods for the high quality products the government contract calls for. There often is a further requirement that the parts be purchased from American companies. Sometimes companies are tempted to provide substitute (and often inferior) parts that they can get more cheaply from an unauthorized source.
Improper cost allocations and failure to comply with contract specifications are also violations that are covered by the False Claims Act. If you are aware of an instance where a government contractor committed fraud, our Whistleblower lawsuit lawyers will assist you with your case every step of the way.
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