WHAT IS DEFENSE CONTRACTOR FRAUD?

The United States government’s Department of Defense, along with other branches of the armed services, frequently hires outside contractors or vendors to support their operation and services. Defense contractor fraud is a term that encompasses any way that one of these contracted companies attempts to intentionally defraud the government through their partnership.

If you have evidence of fraudulent defense contractor activities, the experienced whistleblower attorneys at Price Armstrong can help protect you as a whistleblower. Contact us or call 800-555-1212 for a free, confidential consultation.

Contact a Defense Contractor Fraud Attorney

TYPES OF DEFENSE CONTRACTOR FRAUD

The government spends billions of dollars annually on defense, with contractors providing a variety of products and services from military equipment and supplies to logistical support and security protection. While defense contractor fraud may be committed in many different ways, some of the more common schemes include:

  • Knowingly selling defective products
  • Ignoring or violating quality assurance & testing policies
  • Mischarging or overbilling
  • Bribery, kickbacks, and self-dealing
  • Defective pricing and cost allocation schemes

Defense contractor fraud is serious and causes the government to lose billions of dollars every year. It’s up to whistleblowers who have knowledge of these activities to report this fraud and bring those responsible to justice.

THE FALSE CLAIMS ACT PROTECTS WHISTLEBLOWERS

The False Claims Act (FCA) is the federal law that provides protection for whistleblowers who help the government recover funds that were lost due to fraudulent activities. The FCA allows whistle-blowers the right to gain compensation for their efforts in helping the government prevent and rectify fraud.

To encourage whistleblowers to report defense contractor fraud, the government has outlined certain benefits for those who bring successful qui tam fraud cases to action. These benefits include:

  • 15-25% of the total award, plus costs and fees, if the government intervenes
  • 25-30% of the award, plus fees and costs, if the government chooses not to intervene
  • Antiretaliation provisions to provide protection for whistleblowers from being discharged, demoted, or discriminated against in any way
WHO INVESTIGATES DEFENSE CONTRACTOR FRAUD?

These cases are typically investigated by the Department of Defense OIG, and potentially investigators from the various service branches.

HOW DO I DETECT DEFENSE CONTRACTOR FRAUD?

Review all billing, meeting summary notes, QA and testing documents, and anything else that may provide evidence of fraudulent activities on the part of the defense contractor. If you work for a contractor, you may be told by your employer to bill for products or services that were inaccurate or not provided, or to change the price when billing. This is against the law and should be reported.

WHAT KIND OF EVIDENCE SHOULD I HAVE BEFORE REPORTING DEFENSE CONTRACTOR FRAUD?

It is important to have concrete evidence of defense contractor fraud before reporting it. While documentary evidence is not required, it is considered in many cases and can play a role in your case. Records of improper charges, emails stating fraudulent claims, or in-office memos can be helpful, however, there are important factors to consider before removing company documents. Our experienced qui tam attorneys can evaluate the evidence you have of contractor fraud and help you navigate the rules about disclosure that ensure your rights are protected.

DO I NEED TO FILE A CLAIM OR CAN I JUST REPORT THE FRAUD?

We recommend consulting with an attorney prior to reporting any suspected fraud. The attorneys at PriceArmstrong will provide you with a free consultation to help you evaluate the potential fraud and best consider your options in safely, and confidentially, reporting it.

WHAT HAPPENS IF THE GOVERNMENT DOES NOT PURSUE THE CASE?

Under the False Claims Act, the government can choose to take over the case, called “intervention,” or can decline to do so. Less than 15% of cases are intervened in by the government. However, this is often due to factors that are unrelated to the strength of the case, the amount of information brought by the whistleblower, or the nature or extent of the defense contractor fraud reported. You may have the option of pursuing the case even if the government declines to intervene in your case. We can help you evaluate this possibility during our consultation with you.

CONTACT US FOR A FREE CASE EVALUATION

If you have evidence of defense contractor fraud and are ready to report it, contact the attorneys at Price Armstrong. We represent clients nationwide from three locations, in Alabama, Florida, and Georgia. We can help you seek justice and protect your rights throughout the process. Contact us at 800-555-1212 for a free initial consultation and review of your case.