Criminal Investigations of Government Contractors.

Government contractors are businesses in the private sector who offer their services to select departments, often at a federal level. Receiving a government contract can be a serious boon for a company's prospects, but they need to make sure to follow the laws regarding contracts. These are some of the things to look out for if you're undergoing investigation as a government contractor.

What Warrants an Investigation?

The history of corruption with government contractors means that law enforcement officers need to keep tabs on those working with the government. Just having a contract isn't grounds for investigation, but suspicious activity can be sussed out with minimal difficulty by experienced law enforcement officials. A government contract contains information that all parties need to recognize as true in order for it to be valid. If there's information that you present as truthful when it's fraudulent, such as forged licensure, you could be facing charges of fraud.

Common Reasons for Government Contractor Investigations

How Do Government Contractors Find Themselves Under Investigation?

Government contractors often find themselves under investigation not for what they do while under contract but what they do to gain the contracts. Because of the ruthless competition to gain government contracts, businesses may try shady tactics to weed out their competition or to curry favor with the government officials awarding the contracts. In addition to presenting false documents and making misleading claims, a potential government contractor might try to bribe a government figure to secure a contract. Acceptance of the bribe could result in prosecution for the government figure as well.

Tactics That Trigger Investigations

• Presenting false documents to government agencies
• Making misleading claims about qualifications or capabilities
• Bribing government officials to secure contracts
• Using shady tactics to eliminate competition
• Misrepresenting business credentials or licensure

Working with Restricted Nations

Being a government contractor means being entrusted with certain privileges. You may consider providing your services to other nations, but you need to ensure that you're not working with any nation that is explicitly restricted from doing business with the United States. This can include nations that are undergoing sanctions from the United States. If you're unsure about whether it's legal to do business with a country, consult with any trustworthy government officials.

Understanding Sanctions Violations

Consequences for Violating a Government Contract

Being found in violation of federal, state or local laws as a government contractor could lead to the indefinite suspension of your business with the government. This could mean a loss of work for those who were hired as part of the project who had no part in the corruption, such as construction workers. You can also face prosecution for misleading the government or any other illegal acts.

Potential Consequences