Defense Contractor Fraud

Defense contractor fraud is a common occurrence. It can take many forms, including non-compliance with specifications, the sale of defective products, product substitution, and cost-allocation and over-billing schemes. Defense procurement fraud can compromise people's lives and safety and can amount to significant monetary losses for taxpayers. Defense contracting fraud can affect all agencies, branches, and offices of the Defense Department – both in the United States and abroad. The False Claims Act's qui tam provisions incentivize whistleblowers to report military fraud.

For example, a qui tam lawsuit brought by us on behalf of a whistleblower alleged that a national freight forwarder submitted fraudulent claims for payment to the Department of Defense for the shipment of freight. The case alleged that the company engaged in a pattern and practice of knowingly submitting false claims for payment by transporting freight wholly by surface transportation rather than by air, as required by Department of Defense regulations, and by misrepresenting the actual delivery dates of the freight. The company pleaded guilty to a felony and agreed to settle the matter for $28 million.