Under the False Claims Act, workplace insiders with direct knowledge of non-public fraud can file a qui tam lawsuit on behalf of the federal government. Catching differences between actual job site work and submitted billing records is often the first step to report unlawful overcharges.
Cross-charging between private and public projects
When fixed-price government contracts run over budget, contractors sometimes shift labor or material costs onto federal accounts. Payroll workers and project accountants often catch this scheme when checking internal time records:
- Hours worked on commercial jobs billed to federal project codes
- Equipment bought for private jobs charged to government accounts
- Office overhead costs pushed onto federal agency budgets
Unmatched job cost reports and budget shifts across active projects often show these illegal accounting tricks.
Inflated labor rates and unworked hours
Contractors break federal law when they bill for work no one did or lie about worker skill levels to charge higher rates. Internal auditing staff often spot these specific billing tricks:
- Senior worker billing rates charged for junior staff work
- Timecard hours billed that exceed physical building entrance logs
- Billed hours recorded for past employees or unfilled jobs
These practices artificially boost payroll bills sent to the federal government for payment.
False testing records and missed inspections
Defense and federal building contracts require strict quality testing. Quality control inspectors often find fake records during routine reviews:
- Test certificates signed without doing required safety checks
- Failed quality test results altered to show passing grades
- Safety reports created from fake testing data
Submitting fake compliance documents directly violates federal government contract rules.
Material substitution in contract delivery
Federal purchasing rules strictly control part quality. Site supervisors and purchasing staff often spot wrong deliveries on active job sites:
- Cheap commercial parts used instead of military-grade parts
- Low-quality raw materials delivered with fake approval papers
- Rebuilt parts supplied instead of new parts
Suppliers break federal law when they deliver cheap parts while charging for full-quality goods.
TINA cost disclosures during negotiations
Under the Truth in Negotiations Act, contractors in non-competitive federal deals over $2 million must give accurate and complete pricing data, unless specific legal exceptions apply. Incomplete cost reports cause federal agencies to overpay from the start.
Understanding your next steps
Under the False Claims Act’s first-to-file rule, only the first whistleblower to file a proper lawsuit for a specific fraud scheme can move forward in court. If you see these fraud patterns at work, speak with an experienced qui tam attorney to evaluate your evidence and protect your legal rights before someone else files.