Defense Contractor Fraud

One of the biggest areas for False Claims Act litigation involves defense contractors.  A company may be guilty of a combination of schemes.  The following are the most common ways defense contractors cheat the government:

• Cross-Charging
• Failure to comply with contract specifications
• Selling defective products or services
• Improper Cost Allocation
• Product Substitution
• Violations of the Truth-in-Negotiations Act (TINA)

Cross-Charging:
Cross charging is one of the most common types of defense procurement fraud cases. What often occurs is that the company will instruct employees to write down on their time cards that they worked on a cost-plus contract when they actually worked on the fixed-price contract. A “fixed-price” contract is when the company receives a fixed price for a certain number of military equipment no matter how much it costs to produce them. A “cost-plus” contract is when the government pays the company for the cost of making the weapons, plus a percentage of its costs as a profit.

Defense contractor fraud also occurs when a company provides parts or parts not manufactured in accordance with specification.  Failure to report defective products or inspect products being provided to the U.S. military is also considered fraud.

If you are a corporate insider, an analyst, accountant; or if you are a former employee or a third party with specific information related to the above-mentioned wrongdoings or similar fraud,  contact us and we will analyze your case and provide step-by-step assistance with filing a whistleblower claim to stop the fraud.

Learn more on how to file a whistleblower suit.

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