Procurement Fraud Schemes
Attorneys Specializing in U.S. Government Contracts
Civil, Criminal, and/or Contractual Remedies a Contractor May Face
Procurement Fraud Schemes. Attorney Specializing in U.S. Government Contracts. Solve Problems and Avoid More Mistakes.
U.S. Government Procurement Contract Fraud Lawyer. White collar Federal criminal defense attorney. We help Government contractors facing actual or potential civil or criminal liability for procurement fraud schemes arising from the award or the performance of a Federal Government contract. Our goal is to AVOID or MITIGATE actual or potential CIVIL or CRIMINAL or CONTRACTUAL liability under the Federal contract fraud statutes and regulations described below (see REMEDIES section of article below).
We help you AVOID MORE MISTAKES and deal with the cognizant agency Contracting Officer (CO), agency Office of Inspector General (OIG), and the Government lawyers on your behalf.
The legal matters discussed in this post do not “go away” so to speak in my experience if you do nothing; they only get worse. The Federal Government investigators are tenacious when it comes to procurement fraud schemes and are backed by the virtually unlimited personnel and financial resources of the U.S. Government. Please read this entire post carefully as it contains essential information.
Jeffrey Giancola, the Principal, is a cum laude graduate of Columbia University and received his law degree from the University of Virginia. He is a member of the State of Maryland Bar and has 30 years of experience in the Government procurement field. This Firm is a boutique (small) Government Contracts Law Firm and focuses EXCLUSIVELY on U.S. Federal Government contract matters.
CONTACT us here NOW: PROCUREMENT FRAUD SCHEMES – CONTACT ATTORNEY NOW.
Common Procurement Fraud Schemes (Indicators) You May be Accused of:
1. Falsifying information in Federal contract proposals (cost, technical, schedule, other)
2. Using Federal funds to purchase items that are not for Government use (expense misallocation)
3. Billing more than one contract for the same work (double-billing)
4. Billing for expenses not incurred as part of the contract (cost-shifting)
5. Billing for work that was never performed (e.g., falsified or inflated employee time sheets)
6. Falsifying data submitted to the Contracting Officer (e.g., cost or pricing data)
7. Substituting approved materials with unauthorized products (product substitution) – particularly serious in military environment where injury or fatality results from use of substandard components (owners and managers of contractor could face second-degree murder or manslaughter charges)
8. Misrepresenting a project’s status (percentage of completion) to continue receiving Government funds (e.g., in Federal construction contract)
9. Charging higher rates than those stated or negotiated for in the bid or contract (e.g, shifting labor hours to higher rate labor categories not necessary or authorized for performance of task)
10. Influencing government employees to award a grant or contract to a particular company, family member, or friend
More Common Procurement Fraud Schemes You May be Accused of:
11. Bid Rigging (high-low rotation bid strategy)
12. Conflicts of Interest (e.g., writing the specifications for the Government and then bidding the job)
13. False Certifications (Statements)
14. False Certification of Small Business Status as small disadvantaged firm, service-disabled veteran-owned small business, woman-owned small business, or HUBZone small business
15. Debris Removal Fraud
16. Subcontractor Kickbacks (pay to play)
17. Bribery of Federal Official
18. Materials Overcharging (including inter-divisional non-arms-length transactions)
19. Falsification of Quality Control Testing Results – particularly serious in military environment where injury or fatality results from use of non-specification compliant end-items (owners and managers of contractor could face second-degree murder or manslaughter charges)
20. Household goods moving fraud.
CONTACT us here NOW: PROCUREMENT FRAUD SCHEMES – CONTACT ATTORNEY NOW.
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CIVIL, CRIMINAL, and/or CONTRACTUAL REMEDIES You May Face:
A. Common Criminal Charges Stemming from Procurement Fraud Schemes:
1. False Statements (18 U.S.C. § 1001)
This statute makes it illegal to (1) knowingly falsify, conceal, or cover up a material fact by any trick, scheme, or device; (2) make false, fictitious, or fraudulent statements or representations; or (3) make or use any false document or writing within the jurisdiction of any department or agency of the U.S. For example, a CEO who signs that the information he provided is accurate to the best of his knowledge, when he knows it is false, could be charged with making false statements.
2. False Claims (18 U.S.C. § 287)
This statute makes it illegal to knowingly present or make any false, fictitious, or fraudulent claim against any agency or department of the U.S. The violation occurs when the claim is presented for payment regardless of whether it was actually paid. For example, a construction claim that contains false information could constitute a criminal violation. However, the case is rarely prosecuted when no damages have been sustained due to lack of payment.
3. Mail Fraud or Wire Fraud (18 U.S.C. § 1341 or 18 U.S.C. § 1343 respectively)
These statutes make it illegal to engage in any scheme to defraud in which mail or wire mediums of communications are utilized. There are two elements in mail fraud: having devised or intending to devise a scheme to defraud (or to perform specified fraudulent acts) and the use of the mail for the purpose of executing, or attempting to execute, the scheme. The elements of wire fraud directly parallel those of the mail fraud statute, but require the use of an interstate telephone call or electronic communication made in furtherance of the scheme.
4. Conspiracy to Defraud the U.S. Government (18 U.S.C. § 371)
This statute prohibits any agreement between two or more persons to defraud the U.S. or to violate any federal law or regulation when at least one act is taken in furtherance of the agreement.
5. Other Common Criminal Charges:
Bribery, Graft, and Conflicts of Interest, Generally, 18 U.S.C. § 201-209; Theft, Embezzlement, or Conversion of Public Money, Property, or Records, 18 U.S.C. § 641; Obstruction of Justice or Audit, 18 U.S.C. § 1505, 1510, and 1516; Anti-kickback Act, 41 U.S.C. § 53 & 54; Sherman Antitrust Act, 15 U.S.C. § 1; and Racketeering, 18 U.S.C. § 1962.
B. Common Civil Remedies for Procurement Fraud Schemes:
1. False Claims Act (31 U.S.C. § 3729 et seq.)
The civil statute routinely used by Federal agencies and their OIGs is the civil False Claims Act, 31 U.S.C. § 3729 et seq. The False Claims Act provides, among other things, that persons who knowingly (including with reckless disregard) submit or cause the submission of false claims for payment, or who knowingly make or use false records or statements material to false claims, are liable for treble damages plus civil penalties of $5,500 to $11,000 per false claim.
Under the “reverse” False Claims Act provision, a person who “knowingly conceals or knowingly and improperly avoids or decreases an obligation to pay or transmit money or property to the government” also may be liable.
2. Other Civil Remedies
In addition to the civil False Claims Act, DOJ may use other civil remedies such as unjust enrichment or payment by mistake in connection with a False Claims Act case. If, for any reason, DOJ declines to pursue a matter civilly, it may be referred to the cognizant contracting officer for possible administrative action.
C. Common Contractual Remedies for Procurement Fraud Schemes:
1. Termination of contract for default; 2. Nonaward of contract based upon a finding of contractor nonresponsibility; 3. Rescission of the contract; 4. Revocation of acceptance; 5. Use of contract warranties; 6. Withholding of payments to contractor; 7. Offset of payments due to contractor from other contracts; 8. Revocation of facility security clearances; 9. Increased level of quality assurance; 10. Refusal to accept nonconforming goods; 11.Denial of claims submitted by contractors; 12. Removal of contract from automated solicitation or payment system; and 13. Suspension and Debarment.
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CONTACT us here NOW: PROCUREMENT FRAUD SCHEMES – CONTACT ATTORNEY NOW.
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Helpful Links to Government Contracts Lawyer Resources:
* When is it Time to Hire a Government Contracts Lawyer?
When it is Time to Hire a Government Contracts Lawyer
* Have Been Accused – or Think You Will Be Accused – of a Government Ethics Violation?
* Have You Received a FAR Cure Notice or a Show Cause Letter from the Government?
Cure Notice – Show Cause Notice – Letter of Concern
* Do You Need an Overseas Government Contractor Lawyer?
Overseas Government Contractor Lawyer
* Do You Need Help with FAR & DFARS Compliance?
FAR DFARS Compliance Checklist
* Download the Current Federal Acquisition Regulation (FAR) & DFARS Now