Every year the federal government awards billions of dollars in government contracts to contractors so they can complete work in many different fields. Contractors in pharmaceutical, healthcare, road construction, defense, and other industries compete with each other for these coveted and often lucrative government contracts.
The entire government contracts process is made up of a myriad of rules and procedures to make sure every step in the process is ethical and just. However, every year, millions and sometimes billions of dollars are stolen from U.S. taxpayers in the form of government contracts fraud.
To fight against government contract fraud, Congress has enacted legislation to encourage and entice employees to speak up and blow the whistle when they witness or learn about ongoing fraud. While the enacted legislation offers substantial protections and even financial rewards for whistleblowers, the process can be a legal land mine and is often best traversed with the help of a Maryland government contracts fraud lawyer.
False Claims Act
The False Claims Act is the name of the legislation Congress passed and updated over time to combat fraud, including government contracts fraud. While the Act allows for the federal government to file suit against government contractors suspected of committing fraud, it also allows ordinary citizens to bring suit against government contractors on behalf of the federal government.
Such cases are known as “qui tam” cases. Every year, billions of dollars are recovered by the government through qui tam cases.
In addition to the federal False Claims Act, the State of Maryland also has laws regulating government contract fraud. While Maryland’s whistleblower laws share similarities with the federal False Claims Act, there are unique specifications regarding filing deadlines and the like. It is therefore beneficial to contact a Maryland government contract fraud attorney if you have questions about bringing suit at the state level.
Types of Government Contract Fraud
Unfortunately, government contract fraud can take many forms, as fraudsters have grown quite creative over the years. The following are examples of the most common types of government contract fraud in Maryland:
- Collusion: In some cases, fraud corrupts the entire government contract process, starting with bidding. In order to maintain a fair and ethical bidding process, the federal government has strict rules about who can bid for a contract and how bids are submitted. If the various contractors bidding on a project work together to set a minimum price, thereby raising the price of the project, they are committing collusion, which is a type of fraud under the False Claims Act.
- Disadvantaged business fraud: For some government contracts, the contractors applying are required to have a certain number of minorities or women under their employ. Additionally, minority-owned and women-owned companies can sometimes be awarded contracts in an attempt to level the playing field for historically disadvantaged groups. If a company misrepresents the number of employees within the company who meet race and gender requirements for a contract, it would be committing disadvantaged business fraud.
- Double Billing: This is when a government contractor bills twice for work that was only done once.
- Bribery: This is when a government contractor bribes the federal official tasked with deciding who gets the contract with money or some other benefit.
Substitution of inferior goods, services, or materials: This is when a government contractor uses inferior material or provides an inferior good or service and then charges the price of a more expensive replacement. - Charging for work not completed: In September 2021, a federal judge found a Maryland woman guilty of fraud under the False Claims Act for claiming to have worked an unspecified number of hours on a government contract when she had not actually worked those hours.
The above are only several examples of some of the most common types of government contract fraud. There are certainly other ways contractors can defraud the government of funds. If you are not sure whether something constitutes fraud, you can contact a member of Tycko & Zavareei LLP’s government contract fraud legal team for a free and confidential case evaluation.
Protections for Whistleblowers
Under the False Claims Act, whistleblowers are afforded numerous protections to ensure they do not fear retaliation for outing a fraudster. Some of the protections afforded by the False Claims Act include protection from having hours reduced, being suspending, being denied a promotion, or being terminated. Maryland whistleblowers who report government contracts fraud are also protected from these forms of retaliation in most circumstances. Consult with a lawyer to understand your rights as a whistleblower and what steps you can take if your employer does retaliate against you for reporting government contracts fraud in Maryland.
Financial Rewards for Government Contract Fraud Whistleblowers
Another aspect of the False Claims Act is the financial reward that is offered to whistleblowers for successfully bringing a case against an employer guilty of fraud. Specifically, whistleblowers are eligible to receive 15 to 30 percent of the money recovered in a successful qui tam case.
This amount of money is no small thing, as qui tam cases can often expose fraud in the millions of dollars. Contact a government contract fraud attorney today to discuss your options for filing a lawsuit in Maryland.
A Maryland Government Contracts Fraud Attorney Can Help
At Tycko & Zavareei LLP, our attorneys know the False Claims Act and all relevant state laws inside and out. We have represented whistleblowers like you all over the country and know exactly what to do to see your case through to the end.
Contact a Maryland government contract fraud lawyer today for a free and confidential case evaluation.
