Department of Defense Contractor Fraud

Is Your Defense Contractor Employer Cheating the U.S. Government?

Our Attorneys Help Engineers, Technicians, IT Pros, Accountants and other Defense Contractor Employees Report Fraud and Claim a Reward

The United States Department of Defense depends on contractors to feed, clothe, and equip our troops for combat. The Department of Defense spends over $300 billion per year on contracts for goods and services, including aircraft, military ships, weapons systems, military base support, information technology, consulting services, along with the products and services needed to run things at home. Defense contracts with corporations worldwide contain specific rules and regulations that the government uses to ensure government funds are spent properly.

Unfortunately, the Department of Defense continues to lose billions in taxpayer dollars each year to fraud, waste and abuse of government funds.

Corrupt defense contractors continue to submit false claims in an attempt to profit from government funds - through improper substitution of materials, overbilling, accounting violations, cross charging and other corrupt schemes. This dishonest use of valuable government dollars is illegal and in violation of the federal False Claims Act.

Defense contractors, their employees and ex-employees are our nation’s strongest tool for detecting defense contractor fraud and keeping our nation safe. Under the whistleblower provisions of the federal False Claims Act, the government pays substantial cash whistleblower awards to those who come forward with knowledge of defense contractor fraud and help recover stolen government funds. Government contracts and federal procurement accounted for $1.1 billion in fraud settlements and judgements in fiscal year 2015.

Because whistleblowers receive between 10% and 30% of the total amount recovered, awards often fall in the hundreds of thousands to millions of dollars range.

If you suspect your employer or other individual is guilty of defense contractor fraud, you could be entitled to a substantial whistleblower cash reward. Help keep our nation safe. Contact the Katers & Granitz Team today to learn about your eligibility for a cash reward in a completely confidential, no obligation case evaluation: 800.669.7782 or Report Online

Examples of Defense Contractor Fraud

Under the Federal False Claims Act, engineers, technicians, IT professionals, bookkeepers, and other personnel who work under Department of Defense contracts are prohibited from submitting false claims for payment to the federal government. Conduct that results in submission of a false claim usually falls within one of the following general categories:

  • Accounting violations: Misrepresenting, altering or withholding accounting data in contract bids or expense reports. Failure to document expenses.
  • Cross charging: Shifting the costs of employee labor, materials or other costs from a fixed-price defense contract to a cost-plus defense contract for financial gain. A “fixed-price” contract pays the contractor a fixed price for the product, regardless of the price of production. A “cost-plus” contract pays the contractor a fixed price plus a percentage of the cost of production. Many defense contractors hold both types of contracts.
  • Buy American Violations: Substituting foreign materials for Made in America materials can violate the False Claims Act. Many defense contracts must align with the Berry Amendment, a statutory requirement that prohibits the Department of Defense from using materials produced outside of the United States.
  • Cybersecurity violations: Failure to report a cybersecurity breach within 72 hours of discovery or failure to take appropriate cybersecurity measures on all computer systems violates the Defense Federal Acquisition Regulation Supplement rule and may violate the False Claims Act.
  • TINA violations: Misrepresenting, altering or withholding expense data can violate the federal False Claims Act. For contracts regarding products or services produced by only that defense contractor (a sole-source supplier), the Truth In Negotiations Act (TINA) requires that the contractor accurately disclose all cost information to the government.
  • Substandard products or materials: Using a product or material that does not meet quality or grade requirements as per the defense contract. For obvious safety reasons, most defense contracts prohibit the use of damaged, refurbished or used materials, supplies, protective equipment or food products. Failure to comply with defense contract regulations on health and safety, labor or Environmental Protection Act specifications.
  • Improper cost allocation: Shifting costs of materials, products or services from private or foreign contracts to U.S. defense contracts, often in order to better compete for contracts elsewhere.
  • Inflating expenses: Falsely reporting increased labor, equipment and materials costs in order to gain a larger cost-plus defense contract is a violation of the False Claims Act.
  • False billing: Billing for services not provided or for materials of a higher quality than actually purchased. Overcharging for labor hours or other costs.
  • Failure to report non-compliance: Knowingly withholding information regarding defense contract violations, like use of substandard or defective materials, improper accounting practices or fraudulent misrepresentation.

Our Katers & Granitz defense contractor whistleblower claims process can ensure your claim is right from the very start. Defense contractor fraud recovery lawyer Tim Granitz and the Katers & Granitz team work to maximize your cash award.

We are here to answer your questions and help you make the right choice. To discuss your defense contractor fraud case and learn your options, connect with a member of the Katers & Granitz team for a confidential, no-cost consultation: 800.669.7782 or Report Online

U.S. Defense Contractor Fraud Repeat Offenders

Not surprisingly, the corporations that are repeatedly investigated and/or fined for False Claims Act violations hold the largest defense contracts in the nation. These corporate giants continue to rack up big settlements and fines with the U.S. government:

  • Halliburton
  • Boeing Company
  • Northrop Grumman
  • Lockheed Martin
  • United Technologies Corporation
  • Honeywell International Inc.
  • SAIC
  • Raytheon Company
  • Supreme Group Holding SARL
  • General Dynamics
  • KBR
  • L-3 Communications

Are you an employee or ex-employee of a Department of Defense contractor curious about becoming a whistleblower?

Our Katers & Granitz whistleblower lawyers do not hesitate to take legal action against any defense contractor participating in illegal conduct. If you have inside information on defense contractor fraud and want to claim a cash whistleblower reward, call Tim Granitz and the Katers & Granitz whistleblower fraud recovery team for a private, no-fee consultation: 800.669.7782 or Report Online

How to Report Defense Contractor Fraud and Qualify for Whistleblower Reward

The key to claiming a whistleblower reward under the federal False Claims Act is to possess non-public, original information that the Department of Defense has been financially harmed through fraud.

Even mere suspicion that your employer may have submitted a false claim or is planning to submit a false claim to the Department of Defense is enough to contact our Katers & Granitz whistleblower team for a case evaluation.

If you are the first to report the fraud and are able to prove your case with the help of our Katers & Granitz investigators, we will then discuss filing an action to seek recovery for the money defrauded from the U.S. Department of Defense. Based on the evidence contained in your report, the Department of Justice may then choose to intervene. Once a whistleblower lawsuit is successful in obtaining a verdict or settlement agreement, we will seek to obtain a whistleblower award of between 10% and 30% of the total government recovery amount.

If you have knowledge of a Department of Defense contractor fraud, do not hesitate to contact our Katers & Granitz whistleblower defense team for a confidential consultation.

First-to-file rules mean only the first one to report a case of fraud is eligible for a whistleblower award, and statutes of limitations apply. Our experienced attorneys will confidentially review the facts of your case and help decide the best way to proceed.

Call Tim Granitz and the Katers & Granitz whistleblower fraud recovery team for a private, no-fee consultation: 800.669.7782 or Report Online