Government Procurement Fraud Examples
Facing a Government Procurement Fraud Investigation? Our Defense Contractor Procurement Fraud Attorneys Can Help With Over Two Decades of Hands-on Experience in the Federal Contracting Marketplace.
After years of hard work securing a government contract, you suddenly receive a civil investigative demand or subpoena from the FBI, OIG or DOJ. The government is investigating your business for procurement fraud schemes, and now your entire contract—and potentially your business—is under threat.
Perhaps the allegations of government contract fraud stem from a whistleblower or a competitor, but the details may still be unclear. The stakes of being charged with fraud in government contracting can take a level of stress that is unbearable.
Despite knowing that you have done nothing wrong, or had no intent to defraud the government, OIG, DOJ and other federal agencies put the burden of proof on you, instead of applying the required stand of being presumed innocent until proven guilty.
If you are a target for fraud in government contracting, treat such a case as though the government is ‘coming after you.’ Watson’s government contract procurement fraud attorneys can help you from the investigation through the trial processes.
As a government contractor, this scenario can be overwhelming. You might wonder how to respond or even where these accusations originated. Whether you’re dealing with claims of fraudulent procurement or other violations, your first priority is understanding the nature of the investigation and taking immediate action.
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Critical Concerns for Contractors Facing Government Procurement Fraud Investigations
If your company is under investigation for government contract procurement fraud, it’s normal to have serious concerns. These investigations don’t appear out of nowhere; they often have been building for months before you even receive notice. Here are the main issues contractors typically face:
- Understanding Complex Regulations: Government contracting laws are dense and intricate, and being accused of fraudulent procurement often involves allegations you may not fully understand. Whether it’s bid rigging, price fixing, or claims of kickbacks, it can be hard to navigate these accusations without help.
- Urgency and Deadlines: The clock starts ticking once you receive a civil investigative demand or subpoena if you are investigated for fraud in government contracting. Failing to respond promptly and appropriately could severely harm your ability to defend yourself, which is why immediate action is essential.
- Risk to Business Reputation: Allegations of government contractor fraud can have devastating effects on your company’s reputation, not only jeopardizing current contracts but also affecting your ability to secure future ones. Government fraud in procurement charges can also lead to financial penalties, exclusion from government work, or even criminal charges.
Tip: Please be aware of FAR 52.203 18. Prohibition on Contracting with Entities that Require Certain Internal Confidentiality Agreements or Statements-Representation.
Understanding the scope of these risks and working with a knowledgeable government procurement fraud defense lawyer is crucial to protecting your business.
Common Examples of Procurement Fraud on the Government Allegations
The scope of government contract procurement fraud scheme cases can be broad, involving various forms of alleged misconduct throughout the contracting process. Some common examples of fraud in procurement that contractors may face include:
Price Fixing Procurement Fraud Cases
Contractors are accused of conspiring to raise prices artificially or eliminate discounts, manipulating the bidding process to gain an unfair advantage for items procured by fraud on the government.
Bid Rigging in Government Contractor Fraud
In some government contract fraud cases, contractors are accused of working together to manipulate the outcome of bids, such as one contractor submitting a lower bid and then subcontracting the work back to a higher bidder.
Kickbacks
In fraud in government contracting or healthcare fraud cases, kickbacks can be offering or receiving unauthorized payments to influence the awarding of contracts, whether it’s through a contractor, subcontractor, or government official.
False Invoicing Fraud in Procurement
Contractors may face accusations of submitting fraudulent invoices for services that were never provided or inflating the value of services delivered.
Product Substitution
Product substitution is providing goods or materials that do not meet contract specifications, but charging for the higher-quality items originally promised.
Change Order GovernmentProcurement Fraud Schemes
Some contractors may be accused of using change orders to increase prices beyond the original agreement after securing a contract.
These are just a few of the many allegations government contractors may encounter. If you are facing these charges, it’s important to consult a procurement attorney lawyer who can guide you through the complexities of federal law and develop a strategy to defend your business.
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Immediate Actions to Take When Facing Government Procurement Fraud Charges
If you’ve been notified of an investigation into procurement fraud on the government, the most important thing you can do is act quickly. Here are the steps to take as soon as you receive a civil investigative demand or subpoena:
- Assess the Allegations: Review the documents thoroughly and understand the specific accusations being made. Are they related to the bidding process, contract performance, or post-award actions? This is where an experienced procurement fraud defense attorney comes in.
- Gather Documentation: Collect any relevant documentation that could be used to support your defense. This could include contracts, emails, invoices, and any communications related to the contract in question.
- Consult with a Federal Procurement Fraud Defense Lawyer: This is a critical step. Government procurement fraud investigations are complex, and the laws governing government contracts are vast. Consulting with a defense attorney experienced in handling fraudulent procurement cases is vital to protecting your business.
Watson’s knowledgeable procurement fraud attorneys will help you navigate the specific details of your case and work with you to develop a tailored legal strategy to address the allegations during government procurement fraud representation.
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Legal Support for Contractors Facing Investigations
Nationwide government procurement fraud representation: Having the right legal team on your side is essential when facing a government procurement fraud investigation. At Watson & Associates, we understand the urgency and complexity of these cases. We work with government contractors who have the resources to defend themselves and provide support where we believe we can make a significant difference.
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Our government procurement defense attorneys are ready to help businesses respond to civil investigative demands, subpoenas, and other legal actions that often accompany procurement fraud law investigations.
If you’ve received notice of an investigation or have been charged with government contract fraud, our attorneys can help you:
- Understand the scope of the investigation and what the government is seeking.
- Develop a defense strategy that addresses the specific allegations, whether related to bid rigging, false invoicing, or other claims.
- Gather and review evidence that could help defend your position and protect your business.
- Respond to procurement frauds civil investigative demands and False Claims Act subpoenas to ensure all legal requirements are met within the required timelines.
Take Immediate Action
Being accused of government procurement frauds can be overwhelming, but you don’t have to face it alone. Whether you are dealing with allegations of fraudulent procurement or responding to a civil investigative demand, immediate legal counsel is essential. At Watson & Associates, our procurement fraud law defense lawyers work with clients to build strong defenses and navigate the complexities of federal investigations.
If your business is under investigation for government contract fraud, time is of the essence. Contact our team today for a Free and Confidential Consultation to discuss how we can assist with your legal defense, protect your business, and help you navigate this challenging legal landscape.
To immediately take charge of a defense contract and government procurement fraud representation case, call our Washington DC government procurement fraud attorneys at 1.866.601.5518 and speak to Theodore Watson, our Practice Leader.