Defense Contractor Fraud
A significant percentage of the federal government’s annual spending goes to military or defense contractors (including Fortune 500 companies such as GE, Boeing, Pratt & Whitney, Grumman, and Lockheed Martin) who develop and implement multi-billion dollar weapons systems, facilities, equipment, supplies, and logistical and technical services, as well as to contractors who provide ordinary items like computers, uniforms, vehicle parts, and office equipment. Unfortunately, with so much spending devoted to the country’s defense, there are many opportunities for companies to commit defense contractor fraud against the government. For this reason, defense contractor fraud continues to be a significant percentage of the wrongdoing actionable under the False Claims Act, despite the rise of healthcare fraud by unscrupulous healthcare providers.
Government contracting can be extremely complicated, but lucrative. Below are some of the most common ways forms of defense contractor fraud. Often, a defense contractor may be guilty of one or more of the following:
- Cross Charging
- Failure to Comply with Contract Specifications
- Product Substitution
- Improper Cost Allocation
- Violations of the Truth-in-Negotiations Act
