New York City Defense Contractor Fraud Lawyer
Defense contractors who in engage in military contracting fraud can face prison time, probation, fines, and may be forced to pay back three times of what they gained during the fraudulent activity.
Anyone who has been charged with defense contractor fraud should contact a qualified fraud attorney immediately. A New York City defense contractor fraud lawyer can discuss the charges against you and determine what legal defenses may be available to make an informed decision about how to proceed.
Common Types of Military Contractor Fraud
Military/defense contractor fraud can include kickbacks, bribes, making false statements, omitting material facts, or anything else designed for improperly obtaining government funds. However, some of the most common types of military contractor fraud include cross-charging, substituting products, inflating costs and charges, and violating the Truth-in-Negotiations Act. It may be critical for those accused to speak with a New York City defense contractor fraud lawyer.
Defining Cross-Charging and Substitution
Cross-charging is when a person or company improperly shifts the costs from military contract to another in order to boost the profits of a contractor with multiple contracts.
Substituting products is when a person or company substitute products of lesser quality for those of higher quality – while charging the government for the latter.
Company-Related Violations
When a person or company inflates time records to charge more for labor, creates fake purchase orders, or charges the government higher costs for material and labor than normal or customary that is considered inflating costs.
Violating the Truth-in-Negotiations Act means someone or company violates the requirements which mandate defense contractors to disclose all relevant information about costs to the government in single-source no bid-contracts. Criminal penalties are often significant for any form of fraud committed.
What are Defense Contractor Fraud Penalties?
Individuals and companies who engage in defense contractor fraud can be charged with multiple crimes and can face numerous charges for every incident of fraud.
While penalties vary greatly depending on the crime itself, fines of tens of thousands of dollars, the possibility of having to pay back three times the amount involved in the fraudulent scheme, and significant prison time are almost always a possibility.
Qui Tam Related Penalties
Civil penalties can also be imposed according to the False Claims Act. New York City defense contractor fraud lawyers know that hese can be filed by either the US Attorney General or by individual citizens. The latter are referred to as Qui Tam lawsuits and the government can choose to intervene.
Qui Tam lawsuits are commonly referred to as whistleblower lawsuits and are generally filed by a relator – who is someone that discovers defense contractors engaging in fraudulent activity against the government. The government offers a hefty incentive to whistleblowers – between 15 to 30 percent of the government’s total recovery.
Speaking to a Defense Contractor Fraud Lawyer
If you have been charged with defense contractor fraud, it is important to retain experienced criminal defense counsel to protect your rights and determine whether the charges against you can be dismissed or mitigated through a plea bargain. An experienced New York City defense contractor fraud lawyer can help you make an informed decision about how to proceed.