When military supply contractors shortchange the government with substandard materials, money and lives can be lost.
I suspect defense contractor fraud – Let’s chat
When defense contractors cut corners, they aren’t just stealing from taxpayers, they are putting the lives of our military service members at risk. Substandard equipment, fraudulent billing, and rigged bids undermine our national security. If you suspect this kind of fraud against the government, you have the power to try to stop it. And you don’t have to do it alone.
At Carolina Whistleblower Attorneys, we help courageous people like you stand up to corporate greed. We understand the pressure you’re under and the risks you may face. That is why we
offer a free and 100% confidential case evaluation to help you understand your rights, your protections, and your options.
Our mission as your trusted defense contractor fraud whistleblower attorneys is to be the bridge between you and the government, providing the experience and resources needed to try to hold powerful defense contractors accountable. Let’s talk.
● Defense contractor fraud involves schemes to unlawfully obtain money from the U.S. Department of Defense, and it is a primary target of the federal False Claims Act (FCA).
● The FCA, also known as the “Lincoln Law,” allows private citizens (relators) to file a qui tam lawsuit on behalf of the government and potentially receive a significant financial reward if the lawsuit is successfully resolved.
● Common types of defense contractor fraud include billing the government for non-existent work, providing substandard products, and rigging bids.
● The FCA’s strong anti-retaliation provision is designed to protect whistleblowers from wrongful termination, demotion, harassment, and other forms of employment discrimination for reporting fraud.
Choosing the right legal team for you can be one of the most critical decisions you make in a whistleblower case. You want proven experience, significant resources, and a team that puts you first and knows how to protect you. At Carolina Whistleblower Attorneys, we offer all three.
● Led by a former U.S. Attorney: Bill Nettles, a former U.S. Attorney for South Carolina who helped the government recover over $307 million in fraudulently obtained funds during his tenure, leads our whistleblower practice.1,4 His team knows what it takes to build a strong case and how to work with the government to pursue it.
● A You-First Policy: We are dedicated to your protection. We start with a free, 100% confidential case evaluation to help you weigh your options, and we won’t advise you to move forward unless we are confident together that it is the right course of action for you.
We share your commitment to integrity and accountability. Our mission is to stamp out corporate greed and protect courageous whistleblowers. We respect your courage in coming forward, and we have the skill and knowledge to be your advocates.
Defense contractor fraud is a scheme designed to unlawfully obtain money or benefits from the U.S. Department of Defense (DoD) or other government agencies typically involved in national security. This type of fraud is as old as our country itself and was the primary reason Congress enacted the False Claims Act (FCA) in 1863.
During the Civil War, unscrupulous contractors sold the Army sawdust instead of gunpowder, rotted ship hulls painted to look new, and boots made of cardboard that disintegrated in the rain. President Abraham Lincoln’s solution was the FCA, nicknamed
the “Lincoln Law,” which empowers private citizens to sue fraudulent contractors on the government’s behalf.
Today, the FCA remains the government’s most powerful tool against fraud. When we talk about “defense contractor fraud,” we are referring to a wide range of illegal conduct that can trigger liability under this powerful law. This includes intentional deception and outright lies to reckless overbilling practices.
The core of the False Claims Act is simple: it is illegal to knowingly submit, or cause to be submitted, a false or fraudulent claim for payment to the government. A whistleblower, known as a “relator” in a qui tam lawsuit, can help expose this fraud and may be entitled to a significant financial reward if the lawsuit is successfully resolved.
Defense contractors are paid with taxpayer money, and their contracts are governed by complex regulations. This complexity creates numerous opportunities for fraud. A vast range of conduct can violate the False Claims Act.
At Carolina Whistleblower Attorneys, we have seen these schemes firsthand. Here are some of the most common types of defense contractor fraud our lawyers can help you build a case against:
● Cross-charging: If a contractor with multiple government contracts illegally shifts costs from a fixed-price contract (where profits are tight) to a cost-plus contract (where the government reimburses all costs) to fraudulently inflate profits
● Improper cost allocation: Misrepresenting private or commercial business costs as expenses incurred under a government contract
● Billing for non-existent or unnecessary work: Invoicing the government for labor hours never worked, materials never purchased, or services never rendered
● Defective pricing: Knowingly submitting false or incomplete cost and pricing data during contract negotiations to secure a higher contract price
● Duplicate billing: Submitting the same invoice for payment more than once, either to the same agency or to multiple agencies
● Substandard products or services: Knowingly providing goods or materials that do not meet contract specifications, including using cheaper, weaker metals, providing refurbished parts as “new,” or failing to perform required quality testing
● Product substitution: Falsely certifying that a product meets contract requirements when it is actually a different, often inferior, product
● Failure to test: Skipping mandatory quality assurance tests to save time and money, and then falsely certifying that the tests were performed and passed
● Bid-rigging and price-fixing: Conspiring with other contractors to eliminate competition and inflate prices, such as agreeing to take turns winning bids or submitting intentionally high bids to ensure a pre-selected company wins the contract
● False certifications of compliance: Falsely claiming that the company is in compliance with specific federal regulations or statutes (e.g., environmental standards, “Buy American” provisions) as a condition of payment
● Kickbacks and bribery: Providing or accepting money or other valuables in exchange for favorable treatment, such as the awarding of a contract or a subcontract
Even smaller contractors can commit significant fraud. In the Carolinas, a local construction company building a barracks on a military base could violate the FCA by overcharging for labor, billing for unused materials, or using concrete that doesn’t meet the required strength specifications. No matter the size of the company, fraud is fraud.
The False Claims Act allows private citizens with knowledge of fraud against the government to file a special type of lawsuit on the government’s behalf called a qui tam lawsuit. In a qui tam case, the whistleblower is known as the “relator.”
Here is how the process generally works:
1. Contact an experienced whistleblower attorney: This is a critical first step. An FCA case cannot be filed without an attorney. We can help you evaluate your case confidentially and give you recommendations on how to proceed.
2. File the lawsuit under seal: Your attorney will prepare and file a complaint in federal court. The case is filed “under seal,” which means it is kept secret from the public and the defendant. This confidentiality is designed to protect you and allow the government time to investigate.
3. Government investigation: Your attorney will present the evidence to the U.S. Department of Justice (DOJ). The DOJ will then conduct its own investigation; during this time, your identity remains protected by the seal.
4. The government’s decision on intervening: After its investigation, the government will decide whether or not to intervene and take over the primary prosecution of the case. Our team, led by a former U.S. Attorney, knows what the government is looking for in a case and how to effectively present your case for government intervention. Even if the government decides not to intervene, we have the deep knowledge and resources to continue pursuing your case anyway.
5. Resolution and potential whistleblower reward: If the case is successful — through a settlement or a court judgment — the government recovers the stolen funds. As a reward for your courage and effort, the whistleblower (relator) in a successful case may receive up to 30% of the total amount recovered by the government.
These rewards can be substantial. Our team has helped whistleblowers achieve tens of millions of dollars in total rewards. Not to mention helping stop greedy companies from continuing to endanger lives and steal from American taxpayers.1,4
The government understands that speaking up against an employer can be a daunting prospect. That is why the False Claims Act contains a powerful anti-retaliation provision that makes it
illegal for an employer to retaliate against an employee for taking lawful actions in furtherance of an FCA case. Your employer may not take any of the following actions against you because of your protected activities under the FCA:
● Firing or termination
● Demotion or passed promotion
● Suspension
● Harassment or threats
● Discrimination in job duties or pay
● Any other action that negatively impacts the terms and conditions of your employment
If you are a victim of employer retaliation, you may be entitled to significant compensation, including:
● Reinstatement to your previous position with the same seniority
● Two times the amount of back pay you lost
● Payment for litigation costs and reasonable attorneys’ fees
In short, we know how to protect you.
North Carolina is home to some of the largest and most vital military presences in the United States. From Fort Bragg, the largest military installation in the world by population, to Camp Lejeune and Seymour Johnson Air Force Base, the Tar Heel State plays a critical role in our nation’s defense.
South Carolina also has a significant military presence with eight major military installations including Fort Jackson (a major Army training facility) and Shaw Air Force Base (home to the 20th Fighter Wing).
This massive military footprint creates a thriving defense contracting industry in the Carolinas — and a corresponding risk of fraud.
● Fort Bragg (Fayetteville, NC)
● Camp Lejeune Marine Corps Base (Jacksonville, NC)
● Seymour Johnson Air Force Base (Goldsboro, NC)
● Marine Corps Air Station Cherry Point (Havelock, NC)
● Pope Army Airfield (Manchester, NC)
● Military Ocean Terminal Sunny Point (Southport, NC)
● Joint Base Charleston (Charleston, SC)
● Shaw Air Force Base (Sumter, SC)
● Fort Jackson (Columbia, SC)
● Parris Island Marine Corps Recruit Depot (Parris Island, SC)
These bases, and many smaller facilities, require a constant supply of goods and services from thousands of contractors and subcontractors. Whether it’s a global aerospace manufacturer building fighter jets or a local company paving a road on base, every contract is an opportunity for fraud. If you work for or do business with one of these contractors, you may be in a position to spot wrongdoing.
The U.S. defense contracting sector is immense. It includes thousands of companies, large and small, publicly traded and privately held. And defense contractor fraud can be executed by large companies that build aircrafts, ships, missiles, nuclear drive systems, or even satellites or by small, local contractors digging drainage ditches or servicing equipment.
The largest U.S. defense contracting firms are typically ranked by their defense-related revenue. The top tier, often referred to as the “Big Five,” consistently includes:
● Lockheed Martin
● RTX (formerly Raytheon Technologies)
● Northrop Grumman
● The Boeing Company (its defense, space & security division)
● General Dynamics
Remember that fraud doesn’t just happen in huge companies or on large contracts. For example, you may have a small local construction contractor who is building a barracks at one of the many military bases in the Carolinas. If that contractor is overcharging for labor, charging for materials not used, or using materials of reduced quality to those promised, they may be violating the FCA by committing defense contractor fraud.
Examples of alleged defense contractor fraud that have come to light include: In May 2021, a major defense contractor paid $50 million to resolve an FCA lawsuit based on allegations that it created fake invoices for supposed past sales of vehicle parts and presented those to the government during contract negotiations to build parts for mine-resistant ambush-protected vehicles (“MRAPs”).3
MRAPs are used to transport troops in combat zones where improvised explosive devices may be planted. The whistleblower who initiated the litigation, a contracts manager for the contractor, was awarded more than $11 million for his role in the litigation.3
In 2018 and 2019, three defense contractors agreed to pay a total of more than $120 million to resolve an FCA lawsuit based on allegations that they rigged bids for oil-delivery services. The whistleblower, the brother-in-law of an executive at one of the companies, was awarded more than $27 million for his role in the litigation.3
In July 2018, 3M Company agreed to pay the federal government $9.1 million to resolve an FCA lawsuit related to its Combat Arms Earplugs used by military service members. The whistleblower, a company that made competing earplugs, had alleged that 3M and its predecessor, Aearo Technologies, Inc., knew that their earplugs had a design defect that caused them to loosen in soldiers’ ears. The whistleblower was awarded $1.9 million for their role in the litigation.3
Attorneys with our team have handled cases involving millions of dollars in fraud related to defense contractors.1,4
What if the government decides not to join my case?
If the government declines to intervene, you and an experienced whistleblower attorney may pursue the case on your own. We have the resources to continue to pursue the case on your behalf, if we decide together it is in your best interests to do so.
While government intervention strengthens a case, it is not the only path to possible success. We can evaluate the merits of your case and advise you on the right course of action for you if the government declines.
Do I need physical proof like documents or recordings to report fraud?
While documents, emails, and other physical evidence significantly strengthen a case, you do not need to have these at the outset. A detailed, firsthand account of your suspicions regarding the fraudulent activity is enough to get started. Your attorney can explain what information may best help your case and how to lawfully gather it.
Can I report fraud that happened in the past?
The False Claims Act sets a deadline for filing a case. Generally, you must file a lawsuit within six years of the fraudulent act or within three years of when the government knew or should have known about the violation, but no later than 10 years after the violation. Speak with an attorney as soon as possible to ensure your statute of limitations does not expire.
Can I remain anonymous if I report defense contractor fraud?
When your attorney files a qui tam lawsuit, they do so under seal. This keeps the case secret from the public and the defendant company. Your identity remains confidential during the government’s investigation phase.
If the case proceeds, your identity will likely become public. But having representation by an experienced whistleblower attorney can significantly reduce the odds of your employer even thinking of retaliating against you. And we know how to help protect you at every stage of the process.
If you’ve witnessed or simply suspect defense contractor fraud, you have a choice. You can stay silent and let the possible fraud continue, or you can take a courageous step toward pursuing accountability – and potentially receive a life changing reward. Contact Carolina Whistleblower Attorneys today for a free, no-obligation, and 100% confidential case evaluation. We can listen to your story, explain the law in plain English, and provide you with straightforward recommendations of your options. We will never pressure you. The decision to move forward is always yours.
Don’t let fear or uncertainty stop you from doing what you feel is right. Let our experienced North and South Carolina whistleblower attorneys help guide and shield you. Contact us today at 1-888-292-8852 or through our online form to schedule your confidential chat. We believe in what you’re doing, and we have the resources and experience to help you make a difference.
“Bill has the ability to ‘think outside the box’…which makes him extremely effective as an advocate for his clients.” 1 — Attorney who previously worked with Bill
If you’re wondering if it’s a good idea to speak with a whistleblower lawyer about what you know, let us set the record straight.
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