Examples of Government Procurement Fraud
Immediate Government Procurement Fraud Representation- Legal Defense for Federal Government Contractors in All Locations – Build a Team of Experienced Government Contract Fraud Legal Professionals to Keep You Out of Legal Trouble
You have worked hard to get the company off the ground and on its way to becoming successful in the government contracting marketing space. Then, one day, you receive a civil investigative demand that alleges that you are being investigated for a False Claims Act violation. You know that you have done nothing wrong. How do you deal with the situation?
A fraud charge against government contractors is a serious offense involving alleged. manipulating the procurement process to gain federal contracts or unfair advantages. Sometimes your case could have been initiated by a current or past employee. You do not always know at the beginning how the case was initiated.
Various examples of government procurement fraud schemes are employed to engage in such fraudulent activities. These supplier and vendor purchasing contract fraud schemes, such as taking kickbacks from vendors, can influence the bidding process and contract awards and even occur after the contract has been awarded.
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Watson & Associates, LLC, with law offices in Washington DC, and in Denver, Colorado represents small businesses, medium-sized, and large businesses, that are being investigated for defense contract fraud or CEOs indicted for various types of procurement fraud cases.
Never wait to see how things “play out.” By the time the prosecutors or federal investigation sends you a target letter or issues a subpoena of civil investigative demand, the case has been on their books, sometimes for months or years.
Our law office of top government contractor defense attorneys will immediately form a team of government contracting fraud lawyers and experts (if needed), to first assess the government’s charges. We then develop a strong legal defense up front and explain our plan of action to either get the case thrown out or dismissed.
To immediately take charge of a defense contract fraud representation case, call our law firm at 1.866.601.5518 and speak to Theodore Watson, our Practice Leader.
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What is Procurement Fraud?
Government procurement fraud is a form of purchase fraud involving manipulating the federal procurement process to gain governmental contracts or other value. It usually involves some bribery, kickbacks, bid-rigging, false invoicing or inflated pricing agreements with vendors to secure a federal government contract. These unfair bidding practices are illegal under federal laws and can result in heavy fines and penalties if your products or services are procured by fraud.
Fraudulent procurement actions by vendors can lead to buyers not receiving the intended products or services at the agreed-upon price. In the case of government contracts, vendor fraud can also undermine fairness for other bidders.
Investigation of government contract fraud: Perpetrators of services or products procured by fraud schemes may include vendors themselves, government employees, or even colluding vendors and employees. Vendor fraud can occur both before and after the contract is awarded.
Defeat the Prosecution’s Case? How?
Not all allegations by federal prosecutors have merit. Nevertheless, you can be hauled into a federal government contract fraud investigation. Not only might you have to hundreds of thousands of dollars to prove your innocence, but your reputation and that of your business will be at stake.
Proving intent is usually the biggest hurdle that defense contract fraud prosecutors have to prove. Our government procurement fraud defense lawyers gather the facts and assess the strengths and merit. Then we go to work to show that there is no intent.
At Watson & Associates, LLC, we offer some of the best defense contract fraud lawyers, without the huge prices of large firms in the Washington DC areas. Our procurement fraud defense lawyers and government investigations attorneys focus on representing manufacturers, service contractors and construction companies who are criminally charged or civilly investigated for procurement fraud schemes.
Our government contracting procurement fraud law firm offers consultation and government fraud representation across various jurisdictions in the United States. With law offices in Washington, DC and Denver, Colorado, we are geographically positioned to aggressively defend against Qui Tam Whistleblower lawsuits and criminal charges brought by the Department of Justice (DOJ).
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Government Fraud Representation -Types of Procurement Fraud Cases
Watson & Associates’ defense contractor fraud lawyers handle procurement fraud cases nationwide involving defense contractor fraud representation.
To speak with an experienced government contractor purchase fraud lawyer who has dealt with government whistleblower and various types of procurement fraud cases, call us at 1-866-601-5528 or contact us online.
Procurement Fraud Cases Examples of Pre-Contract Government Procurement Fraud Schemes:
Prior to the awarding of contracts, it is crucial to ensure a fair process where all vendors submit realistic bids, without collusion, and without gaining any unfair advantage. Procurement frauds examples of legal issues in contracts procured by fraud that your company could be charged with include:
Price Fixing: Contractors collude to raise prices or eliminate discounts.
Bid Rigging: The winning contractor subcontracts to higher bids.
Defective Pricing: Failure to update lower costs for goods in pricing data.
Fraud in Needs Determination for Goods or Services: Tailoring the determination of the needs to target specific contractors.
Fraud in Development of Work and Specifications: Statement of work written by or coordinated with a preferred contractor.
Fraud During Pre-Solicitation Phase: Falsified statements justifying sole sourcing.
Fraud During Solicitation: The process excludes some qualified contractors.
Fraud During Bidding: Withdrawal of one bidder who becomes a subcontractor to a higher bidder.
Fraud During Bid Evaluation: Selecting evaluation factors designed to favor a preferred contractor.
Procurement fraud is a serious offense that undermines fair competition and trust in the procurement process. However, if you are a government contractor who is unfairly charged or facing government investigations for allegations of government contract fraud, don’t hesitate to contact our defense team at Watson &. Associates, LLC for immediate defense contractor fraud representation.
Government Contract Fraud Cases – Representation: Avoiding Deceptive and Unfair Bidding Practices
In bidding on government contracts and contract evaluation, vendor purchasing fraud schemes or fraud in public procurement can occur at various procurement stages, not just during the bidding phase. Awareness of these unfair bidding practices is crucial to combat government contract fraud cases effectively. Due to such deceitful activities, governments and taxpayers suffer significant financial losses, amounting to billions annually.
When looking to legal government procurement fraud representation or to engage government contractor defense attorneys, make sure that they understand the below concepts and understand how False Claims Act government contract fraud cases are brought by the OIG or DOJ.
Here are a few different types of post-contract government procurement fraud schemes:
False Invoices: Deliberate creation of misleading invoices to deceive the contracting authority.
Change Order Fraud: Manipulating change orders by replacing an unrealistic low price with a significantly higher one after the contract is awarded.
Cost Mischarging: Concealing actual costs or charging for unallowed costs, material, or labor.
Accounting Fraud: Engaging in fraudulent financial practices to misrepresent income, expenses, or other financial data.
Manufacturing Fraud: Involves the use or production of defective materials, missing volumes of material, or unauthorized transfer of materials.
Certification Fraud: Providing false or misleading certifications regarding product quality or compliance with specifications.
Product Substitution: Unlawfully replacing an ordered product with an inferior, used, or counterfeit item that fails to meet contract requirements.
Witness Tampering: Illegally influencing or intimidating individuals involved in the procurement process to alter or withhold their testimony.
Bribery or Kickbacks: Offering or accepting unauthorized payments or rewards to influence decision-making.
a. Contractor kickbacks: Contractors provide kickbacks to individuals involved in the procurement process.
b. Sub-contractor kickbacks: Sub-contractors offer kickbacks to secure favorable treatment.
c. Vendor kickbacks: Vendors providing kickbacks to gain an unfair advantage.
d. Kickback to purchaser or government employee: Individuals taking kickbacks from vendors in exchange for biased decisions.
It’s imperative to remain vigilant against employee fraud as well. Employees within the purchasing department may exploit their position for personal gain or in collusion with external parties. High-value purchases like computers, tools, and automobiles often become the center of such fraudulent activities.
If you are looking to hire a government contract fraud lawyer, first understand that by understanding the above fraudulent practices and implementing robust monitoring and control mechanisms, organizations can protect themselves from the damaging effects of procurement fraud.
Types of Price-Fixing Fraud
Price-fixing in government contracting fraud occurs when bidders collude to manipulate the pricing of goods or services. Civilian vendors or military contractors can do this to inflate the federal government’s and taxpayers’ prices for public goods. Here are some examples of price-fixing:
- Contractors agree to maintain prices at the published price lists.
- Contractors colluding to remove discounts.
- Contractors agree to use a shared pricing system based on the type or size of the product.
- Collusion to raise prices.
Instances of Bid-Rigging Fraud in Public Procurement
Bid-rigging is a fraudulent scheme in which parties collude to manipulate the prices of government bids. Here are some examples of bid-rigging in fraud in public procurement when there are fraud allegations and government contract criminal charges:
Collusion to submit identical bids.
Collusion to refrain from bidding below government estimates.
Collusion to remove discounts or increase prices compared to previous bids.
Collusion to eliminate competition by removing bids.
Collusion to submit unrealistically low bids to secure contracts.
Collusion to maintain or increase costs charged above actual costs.
How to defend against government procurement by fraud charges?
Defending against federal procurement fraud charges requires a multi-pronged approach. You should first engage an experienced government fraudulent procurement defense attorney who understands government contracting law’s specific allegations and laws and the complexities of navigating federal contract fraud investigations. You should also gather evidence known and your procurement fraud lawyer would prompt you to gather evidence that not immediately thought of. Without developing and planning a sound legal defense, the outcome of your case is at risk.
When defending against fraud in government contracting charges, government contractors should focus on such defense as a lack of intent, highlighting compliance with FAR, SBA, and all relevant regulations, and no conspiracy or other defenses highlighted by your procurement fraud defense lawyer. Remember that time is of the essence when facing civil or criminal accusations. Get help immediately and focus on protecting your rights and securing the best possible outcome.
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Free consultation for Government procurement fraud representation
Watson & Associates, LLC represents large businesses and small business contractors in government procurement fraud representation cases. Our experienced government fraud defense lawyers can assist with defending whistleblower claims and providing legal support to companies charged with government contractor fraud.
To get a free consultation for procurement and government contract fraud representation, please call 1-866-601-5518 or contact us online for a Free Initial Consultation. Speak to Theodore Watson Directly.