Government contract fraud refers to dishonest behaviour or false statements made in connection with contracts with federal, state, or local government entities. Fraud on government contracts carries harsh sanctions, including both civil and criminal repercussions. Depending on the type and scope of the fraud, different punishments may be imposed, however the following are some possible outcomes:
Civil Sanctions:
- Financial Responsibility: People or organisations found guilty of defrauding the government of funding or contracts may have to pay back the full amount. A common term for this is “restitution” or “damages.”
- Fines: In addition to making amends, people or companies may also be subject to heavy fines that are usually issued to discourage fraud.
- fraudulent Claims Act Liability: The federal False Claims Act (FCA) has stiff penalties, including the possibility of treble damages (tripling the amount of the government’s losses) and additional fines for each fraudulent claim made.
- Exclusion from Government Contracts: People or organisations may be suspended from taking part in government contracts in the future after being found guilty of fraud or even just being accused of it.
Criminal Punishments
Criminal charges, such as those for wire fraud, mail fraud, conspiracy, bribery, making false claims, or other offences, may result from the fraud of government contracts.
Individuals may face jail if found guilty of a crime involving fraud on a government contract. Depending on the degree and depth of the deception, sentences might range from a few years to decades.
- Fines: In addition to whatever restitution the court may order, criminal convictions may also carry hefty fines.
- Asset Forfeiture: The government has the right to take any assets or property acquired through illegal government contracts.
- reparation: Convicted parties may be obliged to make reparation payments to the government in order to make up for the losses brought on by the fraud.
Loss of Professional Licences: People with professional licences, such as lawyers, accountants, or engineers, who engage in government contract fraud may be subject to disciplinary procedures, including the suspension or loss of their licences.
A criminal record or accusations of government contract fraud may permanently harm a person’s or company’s reputation, making it more challenging to get future contracts, loans, or commercial prospects.
The U.S. Department of Justice, the Office of the Inspector General, and state attorneys general are just a few examples of federal and state organisations that actively look into and prosecute incidents of government contract fraud. A Government Contract Fraud Lawyer with knowledge in white-collar crime, fraud, and government contract law should be consulted if you are aware of government contract fraud or are facing allegations relating to it. Legal representation can help you navigate the court system while defending your rights and interests.
