Defense Contractor Fraud

Defense contractor fraud occurs when a private company contracted by the U.S. Department of Justice (DOJ) does not satisfactorily provide the military with the goods or service it was paid for. Whistleblower may report all those private contractors who defrauded the government by falsifying their records to receive higher payments, underdelivering or providing defective products.

What is Defense Contractor Fraud?

The U.S. government relies on private companies to deliver on their promises across many sectors, but none is arguably more important than those provided by defense contractors. Products could be advanced combat equipment for soldiers, sophisticated, multi-billion dollar weaponry systems, or even simple items such as vehicle parts, ammo, and computers. Services may instead include vital intelligence analysis performed by private agencies required by servicemen and women who fight secure American interests abroad and at home.

Each year our national defense and international security expenditures amount to approximately $602 billion, wich is about 16% of the Federal budget. As the role of private contractors has expanded within the Department of Defense (DoD) so have their costs that accounted for $110.3 billion in spending in 2014. Taxpayers are those who ultimately pay the price of this type of fraud, as their taxes are shifted to overpay for these malicious scammers instead of being reinvested into better community services. According to a DoD report prepared in the Senate, since 2011 the amount of these petty thefts caused losses up to $1.1 trillion.

The recent wars in Afghanistan and Iraq, as well as our efforts in fighting terror, significantly increased the international scope and size of military contracts. On the other hand, more sophisticated schemes are, by their nature, complex to detect. A company may only test a minority of the total equipment provided, or use advanced computer software to falsify private employee hours. For this reason, the Department of Justice’s Whistleblower Program’s division in conjunction with the Department of Defense have recently made a concerted effort to work with individuals who have insider knowledge to uncover and prosecute corrupt defense contractors. Since 1987, over $2.6 billion have been recovered from military frauds. Qui tam relators who assisted the authorities have received $455 million in rewards so far.

How Private Contractors steal from the military?

Military Contractors Fraud and The False Claims Act

Since our country is currently at war, deceiving those who have chosen to dedicate their lives to defend each of us is an unforgivable abuse. All forms of government contractor fraud are prosecuted under the False Claims Act (FCA). The Department of Justice always relied on brave whistleblowers to come forward and help root out theft and corruption. The original FCA was, in fact, enacted in 1863 by President Lincoln, to fight against those who sold defective supplies and ammunition to the Union Army during the Civil War. In return for their civic duty, qui tam relators receive solid protection and substantial monetary rewards.

Learn more about the False Claims Act

How to Report Defense Contractor Fraud

The U.S. authorities rely on whistleblowers who help by exposing these mischievous act of betrayal. Our troops risk their lives every day fighting in hostile and foreign countries to protect the lives of American citizens. Many of them are young patriots who just want to come back to their families, yet petty and greedy contractors who defraud the government provide them with weapons that explode in their hands and faulty body armors. If you can blow the whistle on any malicious scheme, we can assist you in protecting these young heroes who defend our proud nation.

Contact our lawyer and receive a free, confidential consultation by filling out a form or calling us toll‐free at 1‐800‐681‐3228.