How to Handle Government Contractor Fraud

Whistleblowers frequently win cases based on “procurement fraud,” a type of government contracting fraud.

Federal and state governments use various procurement and government contracting laws and methods to obtain products and services, from weapons systems to computer consulting to uniforms.

Individuals who sell goods and give services to the government conduct fraud across many businesses and organizational structures.

What is a Government Contractor Fraud?

When a contractor knowingly induces the government to pay money, it should not have paid for goods and services under a contract.

These services are when the contractor knows the products or services are not provided, or when the contractor lies to get the contract. It is considered government contracts fraud. It includes any dishonest scheme.

What are the Different Types of Government Fraud Cases:

In government contracting, there are several different types of fraud:

  • Supplying goods or services in violation of contract or regulatory specifications, such as when they do not comply with specified quality assurance and testing standards or have failed such procedures.
  • A breach of the “most favoured customer” or “best pricing” criteria, price reduction provisions, and the Truth in Negotiation Act involves making false assertions about costs, prices, and reductions.
  • Falsely claiming exaggerated expenses or rates for materials or services.
  • Cross-charging occurs by moving expenses from one government contract to another or misallocating costs between government and commercial contracts.
  • Preventing cyberattacks, data breaches, and other security flaws from becoming public knowledge.
  • Export control regulations include the U.S. Trade Agreements, Buy American Act, or other export control legislation.
  • Falsifying a claim of conformity with the prevailing wage laws or the Davis-Bacon Act.
  • Small companies, minorities, or women-owned businesses programs can be circumvented by falsely claiming a disadvantaged business status or utilizing fake subcontractors or other structures.
  • Bribery, manipulating the bidding process, or other illegal tactics used to get a government contract.
  • Some instances of how contractors cheat the government may be found here. A whistleblower may file a claim under the federal False Claims Act if the federal government is the contracting party. A rival can file a False Claims Act suit.

Who is a Whistleblower?

An individual or organization can become a whistleblower if they are aware of unlawful conduct perpetrated by a contractor on behalf of the government. Under the FCA or Lincoln’s Law, a whistleblower may file a suit (qui tam action) against the government.

As a result of the False Claims Act, a whistleblower known as a “relator” can sue the contractor on behalf of the government in a civil lawsuit. To protect the whistleblower’s identity, the firm under investigation has not identified them.

Whistleblowers can file civil lawsuits against corrupt contractors even if they haven’t been damaged in any manner, unlike federal civil cases in the U.S.

Whistleblowers can be anyone who has knowledge and proof that points to suspected federal contractor fraud, whether they’re from an organization, an employee, a family member, an old acquaintance, a neighbor, or anyone else.

Regardless of how large or small their company is, employees may be reluctant to speak out about their boss due to various factors. The anti-retaliation provisions of the False Claims Act were adopted by Congress to safeguard workers from being fired, demoted, or harassed because of their work in connection with the False Claims Act investigation.

When an employee is dismissed or mistreated by their company because of a whistleblower’s name being revealed, this protection permits them to get the compensation that makes them “whole” again.

What are the Compensations?

Compensations can be in various forms, such as:

  • Reinstatement along with Seniority
  • Interest
  • Payback (Double)
  • Attorney Fees and Costs
  • Special Damages

Consult an Experienced Attorney

You must report contractor fraud in government if it has been discovered. Any unlawful or unethical action by contractors or subcontractors must be held accountable. But you’ll need the support of a federal construction fraud attorney to get through this challenging circumstance.