NY Criminal Attorney Explains Fraud in Military Contracting
In 2014, a defense contractor pled guilty to defense contracting fraud. The Department of Justice reported the contractor paid $434 million in criminal penalties and to settle allegations under the False Claims Act. This is one of many incidents of military fraud that resulted in significant financial consequences for those involved. Companies and individuals involved in military contracting fraud can face both civil and criminal consequences, which can put companies out of business or cripple them financially, and which can put individuals in prison.
If you or your organization is accused of defense fraud, contact a NY criminal attorney as soon as possible. Bukh Law Firm, PLLC provides legal representation to individuals and businesses who have been accused of defrauding the government in connection with military contracting. Give us a call as soon as possible so we can begin to build a strategic response to serious allegations.
Types of Military Contracting Fraud
Military contracting fraud can involve many different types of behaviors, including making false statements, omitting material facts, paying or receiving kickbacks or bribes, and other behaviors aimed at obtaining funds improperly from the government. Common examples of fraudulent behavior include:
- Cross-charging: Improperly shifting costs from one military contract to another military contract in order to boost the profits of a contractor with multiple contracts.
- Improperly substituting products: Inferior quality products or materials may be used to save costs, while the government is charged for more costly products.
- Inflating costs and charges in cost plus contracts: Inflating time records to charge more for labor, creating fake purchase orders, or otherwise charging inflated costs for material or labor.
- Violating the Truth-in-Negotiations Act: Violating requirements mandating defense contractors disclose all relevant information about costs to the government in single-source no bid-contracts. Because some highly specialized equipment can be obtained from only a single supplier, providing truthful information is essential so the government knows if it is paying a fair price.
These are just some of many examples of military contracting fraud that could potentially result in criminal charges or civil penalties. Arkady Bukh has a long track record of representing clients accused of serious federal and state crimes in NYC TOP RATED ON:
SUPER LAWYERS, AVVO, NATIONAL TRIAL LAWYERS
Top Rated Criminal Lawyer
Arkady Bukh has a long track record of representing clients accused of serious federal and state crimes in NYC
TOP RATED ON: SUPER LAWYERS, AVVO, NATIONAL TRIAL LAWYERS
Penalties for Defense Fraud
Both individuals and companies involved in military contracting fraud could be charged under a variety of federal statutes bribery, illegal kickbacks, or making false claims or false statements to the government. It is common for defendants who are accused of defense fraud to be charged with multiple different crimes and to face multiple charges for each separate incident of fraud. Prison time is a real possibility for individuals who either made false claims, or caused false claims to be made.
False Claims Act cases also allow civil penalties to be imposed. Civil cases can be filed by the U.S. Attorney General, or individuals can file Qui Tam Lawsuits (which the government may choose to intervene in, but does not have to). A Qui Tam lawsuit can result in a whistleblower keeping up to 30 percent of the money recovered by the government if fraud is proved, so there are strong financial rewards for those who come forward to report suspected fraud.
Defendants must be especially strategic in responding to civil cases, because the burden of proof is less than the criminal standard of beyond a reasonable doubt and because penalties can be financially devastating. A defendant could be ordered to pay mandatory treble damages equal to three times the money obtained through fraud, and could be ordered to pay additional mandatory penalties totaling as much as $11,000 per incident of fraud.
A NY Criminal Attorney Helps with Military Fraud Accusations
Military contracting laws are complicated and both civil and criminal cases related to contracting fraud require detailed knowledge of the laws applicable to government procurement and contract fulfillment.
Bukh Law Firm, PLLC knows the law and understands how to help you build a strong defense to False Claims Act cases and criminal prosecution. Give us a call to learn more about how you can get help from a NY defense attorney with the experience you need to reduce penalties or avoid consequences of alleged fraud.
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