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So your probably holding this Civil Investigative Demand about procurement fraud and your entire government contracting business is crumbling before your eyes. Maybe a competitor reported you for bid-rigging. Maybe a whistleblower claimed you submitted false certifications. Or maybe your just caught up in there latest crackdown on contractor fraud. Look, we get it. Your ABSOLUTELY PETRIFIED. And you should be! Because False Claims Act violations carry TREBLE DAMAGES plus up to $28,000 per false claim – and that’s before criminal charges!
Let me explain the government contracting nightmare your facing. Procurement fraud includes ANY deceptive action to manipulate government contracting – and DOJ interprets this so broadly that normal business practices become federal crimes!
Did you certify compliance with Buy American Act but one component came from overseas? FRAUD! Claimed your a small business but your revenue grew slightly over the limit? FRAUD! Said you met delivery deadlines but were a day late on one shipment? FALSE CLAIMS ACT VIOLATION! We’ve seen contractors destroyed for technical violations they didn’t even know existed!
The False Claims Act makes you liable not just for intentional fraud, but for “reckless disregard” and “deliberate ignorance” of falsity. That means even if you thought everything was legitimate, if DOJ says you “should have known better,” your facing millions in penalties!
Sit down before reading this because the numbers will make you physically ill. False Claims Act penalties start at $14,000 to $28,000 PER CLAIM – and every invoice is a separate claim!
But here’s the killer – TREBLE DAMAGES! The government gets THREE TIMES what they paid you! Had a $10 million contract? That’s $30 million in damages! Plus per-claim penalties! Submitted 1,000 invoices? That’s another $28 MILLION in penalties! We’ve seen small contractors face $100 million judgments for contracts worth a fraction of that!
Criminal charges add another nightmare: Wire fraud = 20 years prison, Mail fraud = 20 years prison, Conspiracy = 5 years prison, False statements = 5 years prison! Stack them up and executives face DECADES in federal prison for procurement violations!
Your probably wondering “Who turned me in?” Let me tell you what destroys government contractors:
Whistleblowers get 15-30% of whatever the government recovers! That disgruntled employee who knows about your contracts? They could make $10 million by reporting you! Competitors routinely file qui tam lawsuits to eliminate competition!
DCAA audits uncover “defective pricing” and cost mischarging. Even honest accounting errors become fraud! Routine contract close-outs trigger reviews that find technical violations from years ago. Mergers and acquisitions due diligence exposes past issues that new owners must disclose. We’ve seen investigations triggered by anonymous hotline tips from jealous subcontractors!
The scope of these CIDs is absolutley overwhelming. DOJ demands EVERYTHING related to your government contracts:
Every proposal, bid, and quote you’ve ever submitted, all cost and pricing data including spreadsheets and calculations, emails between employees about contracts, communications with subcontractors and teaming partners, quality control records and test results, timekeeping systems and labor charging, accounting records and internal audits!
But here’s what’s really unfair – they demand documents about “compliance” with impossibly vague regulations! How do you prove you complied with every FAR clause ever written? Its designed to be impossible so they can claim you withheld documents or destroyed evidence!
YES! And this is often WORSE than the money! Suspension and debarment destroy contractors permanently!
The moment a CID is issued, contracting officers get nervous. New contracts dry up. Option years don’t get exercised. Task orders stop coming. Your essentially blacklisted before any finding of wrongdoing! We’ve seen companies with 30-year spotless records destroyed by mere allegations!
Debarment means you can’t get federal contracts for YEARS – usually three but can be permanent! And it’s not just you – your affiliates, subsidiaries, and even key employees can be debarred! One executive’s mistake destroys the entire company! State and local governments often honor federal debarments, so ALL government work disappears!
This is where it gets TERRIFYING! DOJ increasingly pursues criminal charges in procurement fraud cases!
The government doesn’t need to prove intent to defraud – just that you “knowingly” submitted false claims. And “knowingly” includes reckless disregard for truth! Forgot to update a certification? Criminal! Relied on your subcontractor’s representations? CRIMINAL! Made an honest mistake in cost accounting? They’ll call it conspiracy!
We’ve seen CEOs arrested at there homes in front of there families. CFOs handcuffed at board meetings. Procurement directors imprisoned for subordinates’ mistakes they knew nothing about! One client’s son was graduating from West Point when FBI agents arrested him at the ceremony – DOJ loves making examples!
Qui tam whistleblowers are the deadliest threat to contractors! The False Claims Act gives them massive incentives to destroy you!
Your employees become spies! That project manager who got passed over for promotion? He’s documenting every possible violation. The subcontractor you didn’t select? There preparing a qui tam lawsuit. Even your own compliance officer might be building a whistleblower case!
The worst part – qui tam cases are filed UNDER SEAL! The lawsuit exists for YEARS while the government investigates, and you have NO IDEA! Your competitiors know, DOJ knows, but your completely in the dark until FBI agents show up with subpoenas!
Let me tell you the violations that destroy legitimate contractors:
Cross-charging between contracts is treated as major fraud even when its just poor timekeeping! Claiming commercial items pricing when DOJ says you should have provided cost data becomes “defective pricing.” Progress payment requests based on reasonable estimates? FALSE CLAIMS!
Product substitution allegations are devastating – using an equivalent part that works better but wasn’t specifically approved? FRAUD! Subcontractor kickbacks include legitimate discounts and rebates! Small business subcontracting violations when your sub grew too large! We had a client prosecuted because there small business subcontractor got acquired by a large business mid-contract!
Buckle up for YEARS of business destruction! Procurement fraud investigations are incredibly complex:
Initial CID response (60-90 days of document production hell), government review and follow-up demands (6-12 months), forensic accounting and cost analysis (12-18 months), interviews of current and former employees (6-12 months), coordination with criminal prosecutors (ongoing), settlement negotiations or trial (12-24 months)!
Your looking at 3-5 years MINIMUM! During this time, your business is paralyzed. Key employees leave for competitors. Bonding capacity disappears. Banks call loans. Investors flee. Legal fees? Expect $2-5 MILLION for serious FCA defense. We’ve seen successful contractors become bankrupt before investigations conclude!
This is the impossible choice! DOJ offers “cooperation credit” but look at the reality!
Companies that cooperate fully still pay hundreds of millions! They still get debarred! Executives still go to prison! “Cooperation” means giving DOJ evidence to destroy you more efficiently! We’ve seen contractors provide everything, thinking it would help, only to have there own documents used against them!
But not cooperating? They assume your hiding massive fraud! They expand investigations to every contract you’ve ever had. They raid your offices. They freeze your assets. They add obstruction charges! Its a no-win situation designed to force you into admitting violations that may not even exist!
Here’s another trap – FAR mandatory disclosure rule requires reporting credible evidence of violations!
Find a problem during internal audit? You MUST report it or face suspension! But reporting it triggers False Claims Act liability! Its literally a catch-22 – report and be destroyed by FCA penalties, or don’t report and be debarred for hiding it!
Even worse, “credible evidence” is undefined! Is a rumor credible? An anonymous complaint? A single questionable invoice? We’ve seen companies report minor issues out of caution only to face $50 million FCA lawsuits based on there own disclosure!
Look, we’re not your typical government contracts lawyers who just know the FAR. We’re criminal defense attorneys who specialize in keeping contractors in business when procurement issues become criminal prosecutions.
We understand how DOJ builds False Claims Act cases and there pressure points. We know how to demonstrate that technical violations aren’t fraud. We can show that complex regulations make perfect compliance impossible. Most importantly, we know how to prevent civil investigations from becoming criminal indictments!
Other firms tell you to cooperate and show good faith. That’s EXACTLY how legitimate contractors get destroyed! DOJ doesn’t care about your explanations – they want massive settlements and criminal pleas. We fight strategically, forcing them to prove knowing fraud, not just regulatory violations!
Call us RIGHT NOW at 212-300-5196
Procurement fraud CIDs destroy contractors overnight!
Former DOJ prosecutors – FCA defense specialists – Available 24/7!
Don’t wait another second! That CID means DOJ has been investigating for months or years already. There reviewing every invoice, analyzing every certification, interviewing every employee. Whistleblowers are providing inside information. Criminal prosecutors are preparing indictments!
Remember – the False Claims Act is the government’s nuclear weapon against contractors. One problematic invoice can trigger millions in penalties and prison time. You need someone who understands both government contracting complexity AND criminal defense strategy. Call us NOW before that CID becomes handcuffs!
Very diligent, organized associates; got my case dismissed. Hard working attorneys who can put up with your anxiousness. I was accused of robbing a gemstone dealer. Definitely A law group that lays out all possible options and best alternative routes. Recommended for sure.
- ROBIN, GUN CHARGES ROBIN
NJ CRIMINAL DEFENSE ATTORNEYS