Procurement Fraud
Serving Clients Nationwide
The U.S. government has millions of employees, from bureaucrats to soldiers, all of whom need certain equipment and whose jobs require expenses such as travel, food, and tools. Each year, the federal government spends billions of dollars purchasing the goods and services necessary to keep the government running. The government contracts with private companies to meet this enormous need, presenting a huge opportunity for fraud and abuse.
Nearly every instance of government procurement offers the opportunity for fraudulent claims and overcharging. For example, when a government agency contracts with a computer manufacturer for an office-wide upgrade, the contractor might charge a price above the fair market value of the computers, overcharge for labor on installation, or even fail to deliver all of the computers ordered. Procurement fraud involves submitting fraudulent or false claims for payment from the government, which violates the False Claims Act.
Common Types of Procurement Fraud
The basic principle of procurement fraud is that any activity intended to result in overpayment for the good or service procured is probably illegal. A few common types of procurement fraud include:
- Bid-rigging or kickbacks to secure contracts
- Overcharging for goods, services, or labor
- Delivering sub-standard goods or services contrary to contractual specifications
- Failing to fulfill all contractual obligations while receiving full payment
Clearly, there are many instances in which one or more of these fraudulent activities might occur with many potential variations. There is some government oversight of procurement contracts, but the sheer volume of procurement transactions makes thorough oversight prohibitively expensive. As a result, procurement fraud is widespread and often undetected except in the most extreme cases.
Becoming a Whistleblower on Procurement Fraud
With government oversight and resources for enforcement severely overwhelmed by the volume of procurement transactions, the government relies heavily on individuals of conscience who report procurement fraud through qui tam lawsuits under the False Claims Act. Blowing the whistle on fraud and corruption takes courage, and it accomplishes an important service to taxpayers by helping recover stolen funds. To encourage whistleblowers in qui tam actions, the government offers a significant percentage of the recovered funds as a whistleblower reward.
If you have knowledge of procurement fraud, you may have the opportunity to address this crime in a qui tam action. The law offices of Kenney & McCafferty are staffed with experienced qui tam attorneys who can assist you in bringing your claim on the government’s behalf. Kenney & McCafferty understands the concern of potential whistleblowers about the impact a qui tam action might have on their career or personal life, which is why we will work to ensure your rights under the law to whistleblower protection.
If you have knowledge of a fraud or false claim against the government, please contact our qui tam lawyers today. Kenney & McCafferty attorneys will consult with you about your case, without obligation. All communications with Kenney & McCafferty attorneys during these consultation services are confidential and protected by the attorney-client privilege.
