May is Military Appreciation Month.  We acknowledge the hard work and dedication of America’s military. In addition, we recognize the military’s part in the creation of the False Claims Act. In fact, without the military, there might not be a False Claims Act.

The First False Claims Act Case Was For Military Fraud

Military Appreciation Month

The modern-day False Claims Act (often referred to as “Lincoln’s Law”) originated during the American Civil War.  Abraham Lincoln was appalled by unscrupulous contractors selling the Union Army decrepit horses and mules, faulty rifles and ammunition, and rancid rations and provisions. As a result, Congress passed the federal False Claims Act on March 2, 1863. Similarly, since that time, 29 states have passed False Claims Acts of their own.

Defense contractor fraud comes in many forms.

False statements made to win government contracts   Two Alaskan companies (Kikiktagruk Inupiat Corp. and KIC Development, LLC) paid $2,025,000 to settle FCA allegations that they obtained a construction contract at Fort Bliss Army base in Texas by paying kickbacks and bribes.

Over-charging for goods and services provided  Alpha Research & Technology, Inc., a command and control systems company, paid $1 million to resolve False Claims Act allegations that it submitted inflated prices to the U. S. Air Force.  As a result, there were less government monies available to fund essential programs and services.

Providing parts and equipment that do not meet contract specifications. Toyobo Co., Ltd of Japan and its American subsidiary, Toyobo U.S.A., Inc., paid $66 million to resolve claims that they sold defective Zylon fiber used in bulletproof vests.  Consequently, the sub-standard materials rendered the vests unsafe and put military members lives at risk.

Because I am a military spouse and mother, I know firsthand the daily sacrifices made by servicemembers and their families.  Individuals and entities that defraud the government rob vital programs of necessary funds. Charlatans that provide defective equipment and supplies to the military endanger lives.  Thanks to the False Claims Act, individuals who discover such unscrupulous activity are empowered to do something about it.

How to Report Defense Contractor Fraud

The False Claims Act covers many types of fraudulent activity. A wide variety of misconduct can constitute fraud in the lucrative and complex area of defense contracting. If you believe you have information regarding defense contractor fraud, please contact us for a free, confidential consultation.



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