Department of Defense Fraud
The U.S. Department of Defense commonly does business with defense contractors for equipment purchases and other services. In most cases, these defense contractors will act ethically and meet the terms of their deal without problems, but others may try to take advantage of the relationship to take money from the federal government under false pretenses. While they may believe that they’re stealing from the government, the real victims are the hardworking American taxpayers who fund these programs, which is especially unfair when they’re unaware the fraud is occurring at all. In fact, much of this fraudulent activity happens behind closed doors, and without the help of a whistleblower, we might never know that someone is actively trying to defraud our government.
Some instances of Department of Defense fraud involve contractors knowingly selling defective equipment to the federal government. Defective products are a problem in our day-to-day lives, but they’re even more problematic when they’re in the hands of a soldier who is fighting for our freedom. Whistleblowers can stop this from happening, and they’re even offered a financial reward for their assistance in the matter, between 15% – 30% of the total recovery.
Morgan & Morgan stands with whistleblowers, regardless of the type of fraud they aim to expose. Our attorneys have the resources, knowledge, and expertise to help you expose defense contractor fraud. In fact, Clark Bolton, the head of our whistleblower intake unit, is a former U.S. Army veteran who has a great deal of personal and professional experience in working with DOD and the Veteran community. Contact us today to get started.
Lawyers for All Aspects of Defense Contractor Fraud
There are two types of government defense contracts – fixed-price contracts and cost-plus contracts. In fixed-price contracts, the contractor is paid at a fixed rate for the goods or services provided and isn’t compensated based on the costs associated with providing the goods or service. On the other hand, cost-plus contracts pay the defense contractor the fixed rate as well as an additional amount based on the actual cost of production. Both types of contracts are often used simultaneously between the many defense contractors the government deals with, giving these companies an opportunity to fraudulently switch costs between their contracts.
Defense contractor fraud can look differently depending on the type of work the contractor performs. However, our attorneys are well-versed in all aspects of DOD fraud, including:
- Billing for services not provided
- Selling defective parts or parts not manufactured in accordance with contract specifications
- Failing to notify the government about product defects upon discovery
- Selling used/refurbished parts but charging for new parts
- Violating the Truth in Negotiations Act (TINA)
- Cross-charging on fixed-price and cost-plus contracts
- Making false statements while bidding for a potential contract
- Providing products or services to the government that fails to comply with the government’s procurement regulations, such as labor standards, environmental standards, and worker health and safety rules.
- Providing substandard supplies, food products, and safety gear
TINA was established to protect the government from being overcharged for goods and services. Under the act, all defense contractors must honestly disclose the information about their costs to the government, including good faith estimates of the costs involved in providing goods and services. If they fail to do so, they’re potentially breaking the law, and the organization could be subject to penalties if they’re found to have violated the act knowingly.
Take a Stand Against Defense Contractor Fraud
Although contractors can benefit from a relationship with the federal government, they can’t use fraudulent means to make a profit, and we need courageous whistleblowers like you to take a stand and stop this activity. Our attorneys are here to guide and counsel you during this stressful time, and if you’re in a situation where you believe you might experience retaliatory behavior, we will do everything we can to preserve your legal options.
If you have evidence of any fraudulent activity occurring within a defense contractor organization, our whistleblower team is here to help. Contact us today for more information on how to get started.
