Government procurement fraud is an ongoing problem in the US. The Office of Inspector and the General, Small Healthcare Fraud Lawyer New York City and the DOJ have increased oversight on government contractors across the country. A substantial amount of government fraud cases surface in the SBA 8(a) Program or when contractors submit claims that are unsupported with the right documentation.
Procurement fraud schemes put small business owners and corporate executives in a position where harsh criminal and civil penalties can cause embarrassment, subjectivity to huge fines and prison time.
A Virginia man was sentenced to 16 months in prison, followed by two years of supervised release, for conspiracy to commit wire fraud and major government fraud. He was also ordered to forfeit $1,065,103.90, representing his personal proceeds from the conspiracy.
US attorneys and the federal government have to prove certain elements to meet the burden of proof in a False Claims Act case. To support a case for fraud against the government, the agency has to prove the elements of the statute.
For example, under the False Claims Act, “[a]ny person who… knowingly presents” to the government “a false or fraudulent claim for payment or approval” “is liable to the United States Government for a civil penalty of not less than $5,000 and not more than $10,000, plus 3 times the amount of damages which the Government sustains.” 31 U.S.C. § 3729(a).
“Knowingly” is defined as (1) “actual knowledge,” (2) acting “in deliberate ignorance of the truth or falsity” of information, or (3) acting “in reckless disregard of the truth or falsity” of information; no proof of specific intent to defraud is required.” Id. § 3729(b). The government must prove a violation of the False Claims Act by a preponderance of the evidence. Id. § 3731(c); Commercial Contractors, 154 F.3d at 1362.
Always support government contract claims with supporting documentation or truthful support.: The Court of Federal Claims typically finds that when you certify a claim, as required by 41 U.S.C. § 605(c)(1), that “the claim is made in good faith; that the supporting data are correct and complete to the best of your knowledge and belief; that the amount requested accurately reflects the contract adjustment for which the Contractor believes the Government is liable.”
- Contract fraud cases under the False Claims Act are predicated under the simply statement of certification.
- You must show proof of actions of good faith to avoid fraud.