Agencies continue to increase oversight with procurement fraud investigation crimes against contracting agencies.

A federal government contractor in Alexandria, Virginia  was sentenced to 16 months in prison,Procurement Fraud Crimes - Aggressive Agency Investigations followed by two years of supervised release, for conspiracy to commit wire fraud and major government fraud. 

There is a substantial increase in oversight and prosecution of cases  where there are  joint efforts of the SBA, the Department of Justice, and other partner agencies, to uncover and forcefully prosecute civil fraud committed by those participating in Federal Government contracting programs. Many cases include small businesses that have large businesses and overseas companies involved.

When  contractors finally receive word that the company is under federal investigation, there should be some level of urgency within the company. When the government agency issues a subpoena for documents and information, corporate executives want to make sure that they institute a policy to preserve all emails and correspondence. This means no deleting of emails or shredding documents.

Government procurement fraud investigations, and how you cooperate with federal investigators can make a huge difference in the final outcome of the case. If the evidence is overwhelming, the federal government open both a civil and criminal investigation.

  • Contractors charged with conspiracy to commit wire fraud can be expected to  forfeit  personal proceeds from the conspiracy.

Government agencies such as Department of Homeland Security (DHS), Office of Inspector General (IG); General Services Administration (GSA), Small Business Administration (SBA) and Department of Veterans Affairs are aggressive in seeking out criminal activity involving government procurement fraud.

Government contractors seeking criminal defense or legal advice regarding small business fraud, general fraud investigations, indictment or litigation of procurement fraud crime cases, must act early in the case. This is true given the vast amount of tools available to federal lawyers.

In addition, the early stages of the case often make it difficult to undo critical mistakes at the trial and litigation stages. See additional information about Mail and Wire Fraud Against the Federal Government.

General Areas Where Contracts are Vulnerable to Government Procurement Fraud Crimes: Both large contractors and small businesses are implicated by the drastic laws associated with government contracting. Areas of prime target for criminal activity include: SBA small business government contract fraud crimes– include the SBA 8(a) Program,  SBA HUBZone, Service Disabled Veteran Owned Small Business Programs, False Claims Act violations, wire fraud, conspiracy charges, Anti-Kickback violations,  conspiracy to obtain government contracts through fraud and misrepresentation, defective pricing and other areas of defrauding the federal government.

Procurement Fraud Crime Indicators

The following are a few of the common indicators of procurement fraud crimes and criminal activity.

  • Contractor intentionally delays inception of audit
  • Contractor delays in producing requested data or documents
  • Contractor documents are all photocopies rather than originals
  • Contractor files, reports, data, or invoices are missing
  • High turnover of management
  • Key personnel have been reassigned or terminated
  • The organizational structure is overly complex

Find Out How We Can Help You With Suspension & Debarment Matters

To look at your company operations or for legal representation in procurement fraud investigation  and criminal defense cases, call the federal government contract lawyer John Scorsine at Watson & Associates, LLC for a FREE confidential consultation. 1-866-601-5518.

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