Is Your Defense Contractor Employer Cheating the U.S. Government?
Our Attorneys Help Engineers, Technicians, IT Pros, Accountants and other Defense Contractor Employees Report Fraud and Claim a Reward (Subtitle)
The United States Department of Defense depends on contractors to feed, clothe, and equip our troops for combat. The Department of Defense spends over $300 billion per year on contracts for goods and services, including aircraft, military ships, weapons systems, military base support, information technology, consulting services, along with the products and services needed to run things at home. Defense contracts with corporations worldwide contain specific rules and regulations that the government uses to ensure government funds are spent properly.
Unfortunately, the Department of Defense continues to lose billions in taxpayer dollars each year to fraud, waste and abuse of government funds.
Corrupt defense contractors continue to submit false claims in an attempt to profit from government funds – through improper substitution of materials, overbilling, accounting violations, cross charging and other corrupt schemes. This dishonest use of valuable government dollars is illegal and in violation of the federal False Claims Act.
Defense contractors, their employees and ex-employees are our nation’s strongest tool for detecting defense contractor fraud and keeping our nation safe. Under the whistleblower provisions of the federal False Claims Act, the government pays substantial cash whistleblower awards to those who come forward with knowledge of defense contractor fraud and help recover stolen government funds. Government contracts and federal procurement accounted for $1.1 billion in fraud settlements and judgements in fiscal year 2015.
Because whistleblowers receive between 10% and 30% of the total amount recovered, awards often fall in the hundreds of thousands to millions of dollars range.
If you suspect your employer or other individual is guilty of defense contractor fraud, you could be entitled to a substantial whistleblower cash reward. Help keep our nation safe. Contact the MahanyLaw Team today to learn about your eligibility for a cash reward in a completely confidential, no obligation case evaluation: 202.800.9791 or Report Online
Examples of Defense Contractor Fraud
Under the Federal False Claims Act, engineers, technicians, IT professionals, bookkeepers, and other personnel who work under Department of Defense contracts are prohibited from submitting false claims for payment to the federal government. Conduct that results in submission of a false claim usually falls within one of the following general categories:
- Accounting violations: Misrepresenting, altering or withholding accounting data in contract bids or expense reports. Failure to document expenses.
- Cross charging: Shifting the costs of employee labor, materials or other costs from a fixed-price defense contract to a cost-plus defense contract for financial gain. A “fixed-price” contract pays the contractor a fixed price for the product, regardless of the price of production. A “cost-plus” contract pays the contractor a fixed price plus a percentage of the cost of production. Many defense contractors hold both types of contracts.
- Buy American Violations: Substituting foreign materials for Made in America materials can violate the False Claims Act. Many defense contracts must align with the Berry Amendment, a statutory requirement that prohibits the Department of Defense from using materials produced outside of the United States.
- Cybersecurity violations: Failure to report a cybersecurity breach within 72 hours of discovery or failure to take appropriate cybersecurity measures on all computer systems violates the Defense Federal Acquisition Regulation Supplement rule and may violate the False Claims Act.
- TINA violations: Misrepresenting, altering or withholding expense data can violate the federal False Claims Act. For contracts regarding products or services produced by only that defense contractor (a sole-source supplier), the Truth In Negotiations Act (TINA) requires that the contractor accurately disclose all cost information to the government.
- Substandard products or materials: Using a product or material that does not meet quality or grade requirements as per the defense contract. For obvious safety reasons, most defense contracts prohibit the use of damaged, refurbished or used materials, supplies, protective equipment or food products. Failure to comply with defense contract regulations on health and safety, labor or Environmental Protection Act specifications.
- Improper cost allocation: Shifting costs of materials, products or services from private or foreign contracts to U.S. defense contracts, often in order to better compete for contracts elsewhere.
- Inflating expenses: Falsely reporting increased labor, equipment and materials costs in order to gain a larger cost-plus defense contract is a violation of the False Claims Act.
- False billing: Billing for services not provided or for materials of a higher quality than actually purchased. Overcharging for labor hours or other costs.
- Failure to report non-compliance: Knowingly withholding information regarding defense contract violations, like use of substandard or defective materials, improper accounting practices or fraudulent misrepresentation.
Our MahanyLaw defense contractor whistleblower claims process can ensure your claim is right from the very start. Defense contractor fraud recovery lawyer Brian Mahany and the MahanyLaw team work to maximize your cash award.
We are here to answer your questions and help you make the right choice. To discuss your defense contractor fraud case and learn your options, connect with a member of the MahanyLaw team for a confidential, no-cost consultation: 202.800.9791 or Report Online
U.S. Defense Contractor Fraud Repeat Offenders
Not surprisingly, the corporations that are repeatedly investigated and/or fined for False Claims Act violations hold the largest defense contracts in the nation. These corporate giants continue to rack up big settlements and fines with the U.S. government:
- Boeing Company
- Northrop Grumman
- Lockheed Martin
- United Technologies Corporation
- Honeywell International Inc.
- Raytheon Company
- Supreme Group Holding SARL
- General Dynamics
- L-3 Communications
Are you an employee or ex-employee of a Department of Defense contractor curious about becoming a whistleblower?
Our MahanyLaw whistleblower lawyers do not hesitate to take legal action against any defense contractor participating in illegal conduct. If you have inside information on defense contractor fraud and want to claim a cash whistleblower reward, call Brian Mahany and the MahanyLaw whistleblower fraud recovery team for a private, no-fee consultation: 202.800.9791 or Report Online
How to Report Defense Contractor Fraud and Qualify for Whistleblower Reward
The key to claiming a whistleblower reward under the federal False Claims Act is to possess non-public, original information that the Department of Defense has been financially harmed through fraud.
Even mere suspicion that your employer may have submitted a false claim or is planning to submit a false claim to the Department of Defense is enough to contact our MahanyLaw whistleblower team for a case evaluation.
Brian Mahany, a leading U.S. whistleblower lawyer with America’s largest whistleblower case recently to his credit, or one of the MahanyLaw whistleblower attorneys, will discuss your observations and any evidence you may have with you in a fully confidential consultation and let you know whether your case qualifies for a whistleblower action under the False Claims Act.
If you are the first to report the fraud and are able to prove your case with the help of our MahanyLaw investigators, we will then discuss filing an action to seek recovery for the money defrauded from the U.S. Department of Defense. Based on the evidence contained in your report, the Department of Justice may then chose to intervene. Once a whistleblower lawsuit is successful in obtaining a verdict or settlement agreement, we will seek to obtain a whistleblower award of between 10% and 30% of the total government recovery amount.
Leading U.S. whistleblower attorney Brian Mahany and the MahanyLaw team have decades of experience standing up for whistleblowers in federal and state false claims cases and collecting their well-deserved cash rewards. Brian Mahany and the MahanyLaw Team have:
- Helped recover over $10 billion for U.S. taxpayers in 2014 and 2015
- Hold the record for the largest whistleblower settlement in history $16.65 billion (whistleblower cash award of $170 million)
- Won a recent whistleblower cash award of $40 million
- High visibility as whistleblower advocates focused on what is best for our clients and our country
- Won numerous employer retaliation cases for clients
- Represented whistleblowers in federal and state courts across the U.S.
- 20 year track record of credibility with U.S. Department of Justice, SEC, IRS and other government agencies
If you have knowledge of a Department of Defense contractor fraud, do not hesitate to contact our MahanyLaw whistleblower defense team for a confidential consultation.
First-to-file rules mean only the first one to report a case of fraud is eligible for a whistleblower award, and statutes of limitations apply. Our experienced attorneys will confidentially review the facts of your case and help decide the best way to proceed.