Pursuant to 18 USCE § 1031 and 18 U.S.C. § 641 Government contracting fraud is a serious federal offense that can expose individuals and businesses to criminal prosecution, steep financial penalties, and permanent damage to professional reputations. If you or your business is under investigation for allegedly defrauding the government through a federal contract, it is essential to understand what these charges mean — and what legal defenses may be available to you as an Tampa, FL embezzlement lawyer who has been rated by Super Lawyers can explain.
What Is Government Contracting Fraud?
Government contracting fraud involves any deceptive act committed to gain an unfair advantage or financial benefit in the process of bidding for, executing, or billing for a government contract. These cases are typically prosecuted under federal laws such as the False Claims Act, wire fraud, mail fraud, or the Procurement Integrity Act.
Common examples include:
- Bid rigging or price fixing
- Submitting false or inflated invoices
- Misrepresenting a company’s eligibility status (e.g., falsely claiming minority-owned, veteran-owned, or small business status)
- Failure to meet contract requirements or deadlines while claiming full compliance — i.e. working as an unlicensed contractor
- Improper cost allocations or double billing
- Kickbacks and bribery involving government officials
Even administrative or bookkeeping errors can draw scrutiny, especially when large amounts of taxpayer money are involved.
Who Investigates These Cases?
Allegations of government contracting fraud are typically investigated by agencies such as:
- The Department of Justice (DOJ)
- The Office of Inspector General (OIG)
- The Defense Criminal Investigative Service (DCIS)
- The FBI
- U.S. Attorneys’ Offices
These agencies may initiate civil or criminal investigations, often starting with a subpoena, civil investigative demand (CID), or a visit from federal agents. If you are contacted by investigators, it is critical not to speak with them without first consulting an attorney.
Penalties For Government Contracting Fraud
The consequences for a fraud conviction can be severe:
- Federal prison time (often years, depending on the amount of loss and intent)
- Heavy fines and restitution
- Debarment from future government contracts
- Loss of business licenses and certifications
- Damage to personal and corporate reputations
In civil cases, the government may seek treble damages (triple the amount of the fraud) under the False Claims Act, along with additional statutory penalties per false claim submitted.
Legal Defenses In Government Contracting Fraud Cases
A skilled defense attorney will explore every avenue to challenge the government’s case. Potential defenses for cases include:
- Lack Of Intent To Defraud – Honest mistakes or administrative errors are not criminal.
- Insufficient Evidence – The government must prove fraud beyond a reasonable doubt in a criminal case.
- Procedural Violations – Illegally obtained evidence or improper investigative methods can lead to suppression.
- Good Faith Reliance – If you relied on the advice of counsel, accountants, or compliance officers, this may be a defense.
- Statute Of Limitations – Prosecutors must file charges within a set time frame from the alleged conduct.
Each case is unique, and a defense strategy must be tailored to the specific facts, evidence, and charges.
If you are facing a government contracting fraud investigation or prosecution, don’t wait to protect your future.
Call our office today to schedule a confidential consultation with an experienced federal defense attorney. Early intervention can make all the difference in the outcome of your case. The team at Stechschulte Nell has received a 10.0 rating from Avvo and is ready to put that experience to work on your case.
