What Are White Collar Crimes in Government Contracting?

Theodore P Watson, Government Contractor Defense Attorney. Government Contractors Charged With White Collar Crimes Face Serious Fines and Potential Jail Time. Having an Experience White Collar Lawyer That Also Understands Federal Government Contracting is Critical to Getting a Favorable Outcome. Not all Local Criminal Defense Counsel have this Unique Experience Level.

White collar crime is becoming more common in the federal government contracting sector. The Department of Justice (DOJ), Small Business Administration Office of Inspector General (SBAOIG), and FBI are aggressively pursuing companies for various procurement fraud criminal violations. The various types of criminal activities involve fraud or deceit for financial gain and can include receiving kickbacks, cross-charging, violating the False Claims Act, committing fraud against the United States, or misappropriating funds.

Being found guilty of a white collar crime can have serious consequences. It’s important to understand this type of criminal offense and what it means for accused or convicted individuals. 

White collar crime comes in many general forms, such as bribery, embezzling, insider trading, and money laundering. Though seemingly minor, these offenses can lead to serious consequences when an individual is convicted. Depending on the severity of the crime and any aggravating factors, an individual may face heavy fines and imprisonment. Along with criminal penalties, those accused or convicted of white collar crimes may also face civil penalties. In cases of fraud or similar actions in federal contracts, the government may impose significant financial penalties.

Those accused or convicted of white collar crime involving government contracts should seek experienced legal representation. Government contract defense attorneys can review the evidence and advise you on the best course of action. They may be able to negotiate a plea bargain or reduced punishment. Throughout the legal process, qualified attorneys can protect your rights and defend your interests.

The prevalence of white collar crime in federal government contracting is increasing. It is important for those accused or convicted of such offenses to have a thorough understanding of these types of crimes and their potential consequences. It is recommended to hire a qualified government contract fraud defense attorney in order to protect your rights and interests during legal proceedings.

Examples of White Collar Crime in Government Contracting

Examples of white-collar crimes in federal government contracting include major fraud against the United States fraudulently providing products or services to the government that is different than what the contract calls for; misrepresenting the cost, prices and violation of Truth in Negotiation Act. White collar fraud also includes false claims for materials, labor rates and for work that was not performed on the contract; theft by deception and cross charging the shifting the cost from one government contract; failing to comply with the Buy American Act, and U.S. Trade Agreements Act; Falsely certifying that you comply with Davis-Bacon Act or prevailing wage determinations; falsely applying for a claiming various small business status such as HUBZone, Service Disabled Veteran Owned Status. (SDVOSB); product substitution; kickbacks, time overcharging; overcharging for materials; bid rigging and bribery.
Entities that investigate white collar rimes in federal procurement include the
Securities and Exchange Commission (SEC), the Federal Bureau of Investigation (FBI), the U.S. Department of Justice (DOJ), The Veterans Administration (VA), the Small Business Administration (SBA) and various Offices of Inspector General (OIG).

What is White Collar Crime Punishment?

White collar crimes arguably cost the United States billions of dollars annually. Government contractors and individuals are usually investigated, indicted, and convicted of white-collar crimes. However, federal prosecutors and federal law enforcement agencies can also bring charges against corporations and sanction them. The penalties and punishment for white-collar offenses include heavy fines, home detention, community confinement, paying for the cost of prosecution, forfeitures, restitution, supervised release, and imprisonment.

Federal Sentencing Guidelines for punishment for government contractors that commit various federal crimes tend to provide for a longer prison sentence the federal government or taxpayer are severely harmed. When companies choose to retain white collar crimes lawyers, they can sometimes reduce punishment by engaging in proffers and taking responsibility for the crime. Punishment for a white-collar felony charge can also be reduced when the contractor decides to help the government during white collar criminal investigations.

The various white collar felony offenses under the United States S Code are subject to federal voluntary sentencing guidelines discussed above. The prosecution tends to spin a criminal case by showing that while committing government contracting fraud cases, the CEO is a business owner who was savvy enough to convince the federal government to qualify for award of government contracts and successfully be vetted. A Defendant in a white collar criminal case that is a first-time offender white-collar criminal defendant may be given shorter prison sentence than someone who has a prior criminal record. Generally, the punishment for white collar crimes involving federal government contracting will be less severe than what we may consider a ‘traditional white-collar crime.

What is White Collar Crime Average Sentence?

The average sentence for white collar crime varies greatly, depending on the particular case and circumstances. Generally, sentences are often short probationary periods with fines, but more serious cases can involve prison time. White collar criminal defense lawyers can help individuals who have been charged with a white collar crime to understand their rights and potential sentencing ranges. Depending on the evidence, a skilled attorney may be able to have the charges or sentencing reduced. Individuals charged with white collar crimes should seek experienced legal representation as soon as possible in order to ensure the best outcome in their case.

Penalty for Crimes Under 18 USC Section 1031 and 18 USC Section 287

The maximum penalty for major fraud against the government in violation of 18 U.S.C. Section 1031 is 10 years of incarceration and/or a steep fine of up to $1,000,000.00. The maximum penalty for violations of 18 USC Section 287, the false claims statute, is 5 years of jail time and/or a fine. A Court may decide to impose penalties concurrently, meaning that you can serve all the time at once or consecutively which is serving prison time one count after the other that the jury convicts. If you are a first-time offender white-collar crime defendant with young children you may see more lenient penalties if your white collar crimes defense lawyer makes the right arguments.

What Are Examples of Government Contractor Fraud Jail Time Sentences?

There have been instances where individuals involved in government contractor fraud have received jail time as a result of their actions. It’s important to note that the specific sentences can vary depending on various factors, including the severity of the fraud, the amount of money involved, the individual’s role in the scheme, and any prior criminal history. Here are a few examples of cases where contractor fraud jail time was imposed:

1. In 2019, the owner of a construction company was sentenced to 87 months in prison for his role in a government contract fraud scheme. The individual had engaged in bid-rigging and fraudulently obtained contracts worth millions of dollars from the Department of Defense and other federal agencies.

2. In 2017, a former government contractor was sentenced to 52 months in prison for conspiring to defraud the U.S. government. The individual had submitted false and inflated invoices for services that were not provided, resulting in losses to the government.

3. In 2016, two individuals involved in a scheme to fraudulently secure government contracts were sentenced to prison. One individual received a sentence of 48 months, while the other received a sentence of 18 months. The scheme involved the creation of a sham company to win government contracts set aside for small businesses.

4. In 2014, a former government contractor was sentenced to 37 months in prison for defrauding the government in connection with a contract for security services. The individual had submitted false invoices and inflated expenses, resulting in significant financial losses to the government.

These examples highlight the potential consequences of government contractor fraud, which can include significant jail time depending on the circumstances. It’s essential to remember that each case is unique, and specific sentences can vary based on the facts and circumstances of the case, as well as the applicable laws and sentencing guidelines.

What White Collar Crime Defenses?

When facing a white collar crime charge, it is important to have experienced and knowledgeable legal counsel. White collar criminal defense lawyers provide representation for those accused of fraud and other financial crimes committed by businesses or individuals in the course of their business activities. These attorneys understand the complexities of the law that governs these types of cases, including federal laws such as the False Claims Act and the federal Anti-Kickback Statute.

A typical white collar criminal defense lawyer will be well-versed in the legal defenses available for such cases, including those related to government contractor fraud or other financial misconduct. Common types of defenses include lack of intent to commit a crime, due process violations, entrapment, mistake of fact, and duress. In addition to these defenses, experienced white collar criminal defense lawyers may also be able to advocate for alternative sentencing such as probation instead of jail time. Ultimately, the type of defense strategy employed will depend on the facts of the case and the goals of the defendant.

How to Prevent White Collar Crime?

The best way to prevent government procurement white collar crime is to be proactive and take steps to protect yourself, your business, and your interests. One of the most important steps you can take is to consult a white- criminal defense lawyer. A qualified lawyer can provide advice and guidance on how to manage business operations in order to reduce risk properly.

Contractors can also implement internal policies and control and conduct internal investigations to ensure they remain compliant with government regulations. Training and education can also help in spotting potential criminal activities, as well as establishing a corporate culture of ethics and integrity that encourages employees to speak up if something is amiss. Finally, creating an effective whistleblower program can help to reduce the risk of white collar crime by providing a safe way for those who suspect criminal activities to come forward and report it.

By taking these steps, businesses can protect themselves from the harms of white collar crime while at the same time fostering a culture of compliance and ethics. In addition, government contracting professionals must keep up to date on any changes in rules and regulations that could impact their work.

White collar crimes involving government contracts can carry extremely severe penalties and fines. Not all local criminal defense attorneys have this unique experience. If you are a federal government contractor or health care provider needing a White Collar Crime Lawyer to defend your case. Call the Law of Watson & Associates and speak with Theodore Watson. Call 1.866.601.5516