The second largest type of False Claims Act cases are defense contracting qui tam cases. The federal government spends hundreds of billions of dollars each year in defense of the United States.  A huge portion of the services utilized by the armed forces comes from private companies. These private companies operate in the following industries: Aeronautics, Weapons, Food Supplies, Transportation, and Security. Thus, these are the industries where defense contracting False Claims Act cases are brought.

There are many types of potential fraudulent activities in these industries. Again, these types of defense contracting fraud can be pursued under the False Claims Act. Indeed, whistleblowers can and have filed qui tam cases for the following types of fraud.

Defense Contracting False Claims Act Cases

The following list of fraud has been pursued as a defense contracting qui tam case by whistleblowers seeking to report fraud:

• Misrepresenting the contractor’s qualifications to complete the work. Explained further, the contract might require a provider to be certified in a certain area to perform the job. If the provider certifies he/she is certified and performs the job pursuant to the contract. If in fact, the provider is not certified this can be the basis of a defense contracting qui tam.

• Overbilling or overcharging for goods or services. This is a classic defense contracting False Claims Act case. For example, the contract specifies that the government will pay cost for 10 rounds of ammunition. The true cost of the ammunition is $100, but the government is charged $200. This can be the basis of a defense contracting qui tam.

• Billing for services that were not provided. This is straightforward defense contracting fraud. Simply put, the job was not completed.

• False statements or “rigging” bids. For example, fraud surrounding bidding for defense contracting contracts.

• Utilizing sub-standard goods. For example, a good is supposed to be made of iron, instead it is made of aluminum. This good can be the subject of a defense contracting qui tam.

In addition to filing under the False Claims Act, the violations can lead to failing to appropriately disclose the fraud in securities filings. More specifically, if you have evidence of securities fraud as well, you can file a tip with the SEC Whistleblower Program and later claim an award if successful.

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