DEFENSE CONTRACTOR FRAUD

Government contracts awarded to defense contractors are worth billions of dollars. The companies working to compete for these contracts have a responsibility to properly account for all taxpayer money, and provide safe equipment to the government.

With American lives and hard-earned money at stake, defense companies should act ethically and be sure not to waste funds for corporate profit alone. Should these companies fail to act in accordance with the law, employees acting as whistleblowers, under the False Claims Act (Qui Tam), may help the government recover millions of dollars and at the same time, may be personally compensated for their act.

Should the government choose to file a claim against a defense contractor and recover misappropriated funds, a whistleblower can expect to receive between 15 and 30 percent of the total recovery from the defendant. To be eligible for an award under the False Claims Act, a whistleblower should file a qui tam lawsuit with the help of an experienced attorney.

Informing the government about a certain workplace violation is not enough, and a whistleblower can only be eligible for an award after the government recovers money from a contractor as a result of a lawsuit.

Joe Lyon is a highly-rated defense contractor whistleblower lawyer representing plaintiffs nationwide in a wide variety of workplace and government fraud claims.

Defense Contractor Fraud & Qui Tam Claims

It is believed that defense contractor fraud is quite common, primarily because of the vast amounts of money involved with each contract. The government is currently investigating several claims of fraud that may have occurred during the recent wars in Iraq and Afghanistan. The Justice Department has recovered millions through whistleblower lawsuits relating to contracting fraud during the wars.

In 2014, the government recovered $434 million after Supreme Foodservice and Supreme Foodservice FZE, privately-held United Arab Emirates (UAE) and Swiss companies, pleaded guilty to fraud against the United States in connection with a contract to provide food and water to the U.S. troops serving in Afghanistan.

There are several kinds of defense contractor fraud that may result in injuries, misuse of government and taxpayer funds, and a subsequent lawsuit that may award whistleblowers for their brave assistance. Some contractor fraud cases, assisted by a defense contractor fraud lawyer in the past have included the following:

• Instances of gross overbilling
• Billing for services that were not provided
• Selling defective products
• Failing to complete safety tests on equipment
• Machinery or parts were not manufactured in accordance with contract specifications
• Failing to notify the government (customer) about defective products
• Charging for new parts and selling used parts
• Making false statements to win a contract
• Providing products that fail to comply with environmental standards
• Overstating the labor cost for a project
• Providing substandard products
• Destroying contract records

Recent Defense-Related Whistleblower Cases

• Lucas Industries and two U.S. subsidiaries paid the Government $88 million to settle a Qui Tam suit brought by a machinist who formerly worked for the company. The plaintiff accused Lucas of falsifying gear charts for a key component of Navy aircraft and major defects in gearboxes for an Army rocket system. Lucas Industries was barred from receiving new government defense contracts. The machinist who blew the whistle received over $18 million.
• General Dynamics paid $1.8 million to settle a suit for overbilling the government during fighter jet testing. The company allegedly falsified time cards for about 50 employees. The multiple whistleblowers received $405,000.
• Lockheed Martin and the Martin Marietta Corp. repaid the government $5.3 million after the companies allegedly overcharged the Department of Defense for research and development costs. The plaintiff who brought the case received $795,000.
• Hughes Aircraft Co. Inc. allegedly defrauded the government of over $4 million when it failed to perform tests on components used in military electronic equipment. The defense contractor fraud whistleblowers reportedly received $891,000.
• Under an Air Force repair contract, Teledyne allegedly altered and destroyed records. The government recovered $4.75 million and the individual who filed the case received over $800,000.
• United Technologies Corp. allegedly billed the Government for work it had not completed. An executive blew the whistle. The Federal Government settled the lawsuit for $150 million, and the whistleblower received $22.5 million.

Defense Contractor Whistleblower Lawyer

Some of the largest corporate names in America are the target of lawsuits when defense contractor fraud whistleblowers come forward. Employees of the following defense contracting companies may have a claim if they have witnessed the misappropriation of taxpayer money.

• Boeing
• Lockheed Martin
• Northrop Grumann
• General Dynamics
• Air Industries Group
• Hughes Aircraft Corp.
• L-3 Communications
• United Technologies Corp.
• Martin Marietta Corp.
• Honeywell
• Halliburton
• Raytheon

Whistleblowers Protected from Retaliation

If you are hesitating to blow the whistle on fraud against the government, remember that if defense contractors supply the armed services with defective goods or equipment, soldiers’ lives are at risk.

Under the False Claims Act, whistleblowers can receive between 15 and 30 percent of the total amount collected by the federal government, which can amount to as much as three times the amount of the false claims. This amount can very and it is prudent to contact a defense contractor whistleblower lawyer.

By interacting with the government on your behalf, the Lyon Firm can help you maintain your confidentiality and protect you from retaliation. Whistleblower retaliation protections exists for employees of defense contractors, which ensure protection for providing information that the employee reasonably believes amounts to evidence of illegal, wasteful, or a substantially dangerous activity to public health or safety.