Defense Contracting Fraud


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1. Is it true that the False Claims Act was originally passed to address Defense Contracting Fraud during the American Civil War?

Yes, at the time there was “massive” and “rampant” defense contracting fraud and Congress and President Lincoln realized that one of the best ways to combat it was by passing and enacting the False Claims Act.

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2. Has Defense Contracting Fraud continued to be a mainstay of False Claims Act litigation since the Civil War?

They break down into three principal categories. One is using sub-standard, substitute or non-U.S. made parts or materials. A second is not performing proper quality control tests (and/or falsifying their results). And, the third type is complex accounting fraud, such as shifting costs and expenses between Government and/or private business contracts.

3. What are some of the more common types of Defense Contracting Fraud?

They break down into three principal categories. One is using sub-standard, substitute or non-U.S. made parts or materials. A second is not performing proper quality control tests (and/or falsifying their results). And, the third type is complex accounting fraud, such as shifting costs and expenses between Government and/or private business contracts.

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