Defense Contractor Fraud

Defense contractor fraud is perhaps the most traditional type of Government contract fraud addressed by the False Claims Act. Often, defense contracting fraud involves sophisticated, multi-billion dollar weapons systems and enormous Fortune 500 companies like GE, Boeing, Pratt & Whitney, Grumman, Lockheed Martin, etc. But, defense contractor fraud can include ordinary items like computers, uniforms, vehicle parts, and office equipment.

Where the federal contract involves the procurement of a fleet of aircraft, vessels, or other vehicles or thousands of weapons like cruise missiles, the Government enters into a “prime contract” with a manufacturer or supplier. The prime contractor, in turn, enters into subcontracts with hundreds of other companies that manufacture and supply components or provide essential military goods and services. All of these defense contractors are required to comply with the False Claims Act, even though they may not directly contract with the Government.

Typical violations include failure to comply with the contract requirements, such as where the contractor does not abide by the Federal Acquisition Regulations (FAR’s) recited or incorporated in the contract.

Our firm is only investigating claims in which a business entity, such as a company or medical practice, is submitting false claims to a governmental entity in excess of $500,000. We do not handle cases involving individuals receiving government benefits under false pretenses. (For example, we do not handle claims in which a person falsely claims disability in order to receive government benefits. ) For these claims, you should contact the appropriate governmental agency directly, such as a state medicare-fraud hot line, and report the fraud. Regarding tax fraud, we are only handling cases in which the underpayment of taxes exceeds $2 Million, and the income of the person committing tax fraud exceeds $200,000 per year.