Defense Contractor Fraud - False Claims Act
“In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex.” - President Dwight D. Eisenhower, 1960
Having served as army general and President, Eisenhower saw potential for the military-industrial complex to perpetrate massive fraud on the American people. But he was not the first President to issue such caveats. Abraham “Honest Abe” Lincoln urged lawmakers to reform military-industrial oversight upon discovering massive fraud in government military contracts as far back as 1863. Today, thanks to concerns voiced by great men like Eisenhower and Lincoln, our government has agencies devoted to controlling waste and fraud. But these agencies can only do so much, and like much of what makes America great, the bulk of the responsibility is placed upon the American people themselves.
Our men and women in uniform depend on everyday Americans employed with defense contractors to police waste, fraud, and corruption. Thanks to a law called The False Claims Act, ordinary citizens are empowered to correct wrongful behaviors of the mightiest defense contractors. Once the wrongful conduct is reported through the citizen's lawyer, the citizen is given special “whistle-blower status” and cannot be fired for reporting the fraud. As if performance of a patriotic duty weren't reward enough, the citizen exposing the corrupt defense contractor may share a portion of the government's recovery—potentially millions of dollars.
One proud American exposed his military aircraft company's peacetime overstatement of progress payments to the Department of Defense. Thanks to him, the military recovered $150 million to better spend on troop safety and equipment. The finance VP who blew the whistle was awarded $22.5 million for exposing the fraud. But fraud occurs in wartime as well. As recently as August of 2006, during the heart of the Iraq conflict, a Houston based shipping and logistics contractor attempted to defraud the military of millions in bogus shipping fees. Thanks to two employees utilizing The False Claims Act, the scheme was foiled and the whistle blowers received $800,000. Another case settled for $1.2 million when it was discovered that a defense contractor responsible for testing fire alarms on military bases was falsifying inspection reports for phantom tests. The whistle blower not only saved the government money, but directly ensured the safety of military personnel.
If you have reason to believe your employer is defrauding the military, however large or small, becoming a whistle-blower is easy. Your first step is to speak with a lawyer, assured that any information you give will be held in the strictest confidence. After reviewing your case, your lawyer will help you decide if becoming a whistle blower under The False Claims Act (a qui tam relator in legalese) is right for you. Your lawyer will prepare your case, and submit it to the proper authorities for review. During every step of the process, your lawyer will make sure that your interests as well as your job are protected. Most lawyers skilled with False Claims Act cases like yours will accept your case at no charge to you, asking only for a share of the eventual settlement.
Stop losing sleep over doubts about your company's defense contracts. Talk to a lawyer experienced in military False Claims Act cases who can investigate and evaluate your case, giving you an opinion as to where your employer really stands. Doing so is a patriotic duty owed to men and women in uniform, as well as a potential windfall for the whistle blower.
