NEW JERSEY CRIMINAL LAWYERS

NJ Construction & Military Contract Fraud Defense

Defending Against Construction and Military Contract Fraud Charges

Federal contracts for military and construction projects amounting to over a trillion dollars are awarded every year. These contracts provide steady and reliable employment to workers in these sectors, but they also come with risks. If you or your company becomes the subject of a federal investigation alleging fraud, fines, recoupment of funds, contract termination, and even criminal proceedings for key personnel involved may ensue.

It is worth noting that some companies have multi-billion dollar annual contracts with the US government. This expenditure on defense totaled almost 700 billion dollars in 2019; therefore, the majority of the projects went to military and engineering companies. With such significant investments made by the government in these sectors, there exists a high level of scrutiny on contractors.

The Federal False Claims Act

Federal authorities can use a Civil Investigative Demand (CID) issued through subpoena power to source information for auditing a project and building compelling cases alleging fraud. The lack of court proceedings does not exempt contractors from contempt charges if they fail to comply with this demand.

In case your company is facing allegations surrounding your federal project due to receipt of a CID or other reasons, it is crucial to enlist skilled lawyers experienced in dealing with federal legislation as well as dealing with law enforcement agencies like Department Of Homeland Security, Department Of Defense among others.

Common Allegations Of Contract Fraud

Whenever contractors commit fraud against any government agency while executing their duties within any construction or military-related project under federal funding/federal contact proceeds regulatory frameworks provided under Federal False Claim Act comes into play for both civil and criminal actions. Giving false information regarding material prices or time needed for project completion attracts fraud charges under this act. Similarly co-conspiracies between bidders regarding rigged bid schemes makes them all criminally liable. At times when prosecuted under the Fraud Claim Act other specific charges such as money laundering are brought before such like mail frauds and stealing government property.

Challenges that Federal Government Might Investigate

The various fraudulent contract allegations include:

1. Bid-rigging and fraud
2. Use of cheaper materials than agreed on with the government
3. Inflating labor and material costs than what is required by the contract agreement
4. Delivery of inferior quality services than agreed upon
5. Cross-charging between contracts
6. Improperly allocating contract costs
7. Falsifying quality control test results
8. Unlawful kickbacks and bribery
9. Violation of the Truth-In-Negotiations Act

This table shows examples of government contract fraud:

| Fraud Allegation | Description |
|——————————-|—————————————————————————|
| Bid rigging, false Claims | Intentional efforts colluding with competitors to restrain fair competition|
| Substitution, relabeling | Deceptive schemes involving low-quality products, cheap material substitute to increase margins |
| Labor claims | Exaggerating project time or personnel labor required |
| False certifications | Submitting fictitious records for executing desired actions |
| Sabotaging Quality controls | Inappropriate Product quality control evaluation |

Defense Strategies Against Contract Fraud Charges

Determining which allegations could lead to numerous target defendants being accused of committing related offenses can help defense attorneys mount an effective defense against federal prosecutor accusations calling for a broad range of charges against their clients.

To ensure successful defense strategies, skilled lawyers are cautious about assessing the Government’s motives during prosecution suitably determining their primary intent before launching a layered defense mechanism.

What If Your Company Receives A CID?

If your company receives a CID, it may indicate involvement in some organization under investigation by the feds’ civil enforcement authoritieand provides signals that caution is necessary from possible subsequent criminal prosecution trials.Enabling you to offer specific information while preventing inadvertent release data potentially increasing subsequently investigative depth demands of expansive combing through several hundreds of thousands related documents. It’s essential to note that these claims arise from a complex web of white-collar crimes and regulatory bodies’ investigations.

Conclusion

Taking up government work contracts may provide dependable remunerations and also a stable business pipeline full of future lucrative opportunities. Still, with the benefits are some risks that require practical steps in fending off the high-stakes litigations by acquiring specialized legal expertise, consulting with experienced prosecutors in-charge of enforcement and defense strategies, being truthful with all information presented while maintaining information confidentiality, avoid complicity on issues as bid rigging e.t.c.