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Who is liable for government contractor fraud?

On Behalf of | Dec 14, 2021 | Qui Tam Cases, Whistleblower Protection

Whistleblowers are often a beneficial resource in identifying government contractors behaving dishonestly. They commit fraud when they do not provide services or goods outlined in a state or federal government contract. Despite the different industries and structured contracts, one thing that they all have in common is that the government hired them.

There are many potentially different actors involved

Here is a shortlist of contractors who may be involved in fraudulent misrepresentation:

  • Weapons manufacturers
  • Construction companies involved in public works, infrastructure or transportation projects
  • Consultants and services
  • Correctional services for detention facilities
  • Subcontractors
  • Information technology companies

Some typical examples

This is list is a sample of a wide variety of instances that involve contractor fraud:

  • Misrepresenting the price of goods and services
  • Providing products or services that do meet the contract specifications
  • Submitting false claims for inflated costs
  • Cross-charging costs across different contracts or misallocating costs
  • Providing goods and services that do not follow U.S. trade agreements, the Buy American Act and other export control laws
  • Falsely claiming compliance with prevailing wage requirements
  • Obtaining a contract through bribery or bid-rigging

Where to report fraudulent activity will depend on which government agency they defraud. Federal, state and municipalities will often have their own false claims acts and whistleblower programs. Employees may make the claim of the companies involved in the contract, but it could also involve business competitors who believe that the contract agreement was reached by unfair means. Those with questions or concerns about where to report contractor fraud may want to speak with an attorney with a background in these matters.