Many do not understand the purpose and capabilities of a whistleblower law firm. Not only do whistleblower attorneys have the ability to defend in qui tam cases, but such lawyers can also serve as a fortification in instances where defense contract fraud exists.
About Defense Contract Fraud
Defense contract fraud occurs when a private entity sells faulty goods to the government at ridiculously high marked prices. Selling cheap weaponry for three times its worth to armed forces could fall under defense fraud. For example, if the seller intentionally invoiced the items at above market price for the sole purpose of making an additional profit.
Rules regarding contracts between government entities and private companies were first put in the books during the Civil War. It was during this time that the uniform store that the armed forces used to clothe its men began using cheap fabric that did not endure the pressures of war. The company charged the government prices that one would pay for quality fabric all while using material that easily ripped. As a result, executives in parliament added a section to the False Claims Act that sought to protect and reward citizens who blew the whistle on companies that operated under such unfair practices.
Determining a Case for Fraud with a Whistleblower Law Firm
Typically a contracted company will attempt to take advantage of its government agency agrements in one of three ways:
- The company will cross-charge the agency. Instead of simply invoicing a flat fee for services, a business may charge a standard fee plus hourly wages. Companies that operate this way tell employees to log time after charging the government fees that are meant to cover hourly wages.
- The business will substitute products. Such substitutions tend to be at the expense of the government. Instead of using a high-quality material as stipulated in the agreement, the company will cut corners to save money. The government, in essence, suffers due to paying more money for products that will last half the time.
- The business will not properly allocate time spent between working for the government and another company. This form of defense contract fraud usually occurs when the project requires a partnership between the government and a corporation. Instead of recording time spent working for the two entities separately, the company in question may invoice the government for all hours worked. Such action leaves the government paying for the entire job even though another company shared in expenses incurred.
The Importance of the Whistleblower in Defense Contract Fraud
Millions of taxpayer dollars go to companies that use devious practices to receive pay from the government. An individual who sounds the alarm on such practices saves the country money. They also assist in helping funds go to more deserving programs in defense. A whistleblower law firm can help in fighting fraud by connecting citizens with experienced counsel that can conduct thorough research.
Are you aware of defense contract fraud and need to know how to proceed? Learn more about what whistleblower law firms can do for you by contacting Bothwell Law Group today.