Defense Contractor Fraud

What is Defense Contractor Fraud?

Defense contractor fraud is any dishonest scheme by which a contractor (or subcontractor) knowingly induces the U.S. Department of Defense or one of the branches of the armed services to pay money that it should not have paid under a contract for goods and services, where the contractor knew the goods or services were not provided or were substandard or failed to meet other significant contract requirements, or where the contractor lied in order to get the contract.

The original False Claims Act, including its qui tam whistleblower provisions, was passed in 1863 to combat cheating in the Civil War by Union Army war suppliers. Fraud by defense contractors continues to be an important component of qui tam whistleblower litigation.

The United States spends over $700 billion annually in national defense. A significant portion of these funds are paid to private contractors under government contracts to provide weapons, military equipment and supplies, logistical support, security protection, and reconstruction assistance. While contractor fraud may be committed in an infinite variety of ways, some of the more common schemes are:

  • Supplying Defective Products and Services
  • Quality Assurance & Testing Violations
  • Cross Charging or Mischarging
  • Bribery, Kickbacks, Self-Dealing, and Bid-Rigging
  • Defective Pricing and Violations of the Truth-in-Negotiations Act
  • Buy American Act and other Trade Act Violations

VSG Qui Tam Lawyers Are Experienced in Handling Defense Contractor Fraud Cases

For over two decades, the qui tam lawyers at Vogel, Slade & Goldstein have represented whistleblowers and the Government in successful cases in all of these areas. We have filed False Claims Act lawsuits against and recovered settlements from some of the biggest and most powerful companies in the defense industry, including Teledyne, General Electric, Wackenhut/ArmorGroup, Textron, Hughes Aircraft, Pratt & Whitney and Martin Marietta Corporation. We have worked with Department of Justice prosecutors, and lawyers and agents in the Defense Department and each of the Armed Services, the State Department, NASA, the Offices of the Inspector General and the Federal Bureau of Investigation.