Procurement Fraud
Organizations transacting business with the U.S. government must do so in a fair and compliant manner. Recipients of government grants must not commit fraud in applying for these funds or waste them once received. When companies purchase licenses from the Federal Communications Commission, or bid on contracts under the General Services Administration, they must comply with regulations and act honestly in their negotiations.
The U.S. government purchases products & services from companies in virtually every industry, and also awards nearly $450 billion in Federal Assistance Agreements annually. Funding provided for national infrastructure programs, scientific research and the social sciences are all subject to being recovered under the False Claims Act.
Government procurement fraud resulting in settlements with the government:
Mario Gabelli & Affiliate Companies Pay U.S. $130 Million for Allegedly Defrauding FCC
Settled allegations that various friends and relatives of Gabelli were recruited to serve as officers of bogus small or very small businesses that existed only on paper, solely to certify that they met the FCC’s eligibility rules to participate in the auctions, so as to obtain bidding credits and/or favorable governmental financing, and to obtain the FCC’s approval to transfer licenses to third parties.
The relator in the case received $32.2 million.
Settled allegations that effective pricing disclosures during the negotiation of a contract under the General Services Administration Multiple Award Schedule program were not current, accurate or complete.
“All companies that want to avoid their disclosure obligations while selling products to the United States government are on notice today that we will use the False Claims Act and all other civil legal tools at our disposal to fight fraud and abuse."
The relator in the case received $17.7 million.
GSA Contractor NetApp Agrees to Pay U.S. $128 Million to Resolve Contract Fraud Allegations
Settled allegations that NetApp failed to meet its contractual obligations to provide GSA with current, accurate and complete information abouts its commercial sales practices, including discounts offered to other customers. The settlement relates to the sale of hardware, software and storage management services for computer network environments to government entities.
“Especially in these difficult economic tiumes of stretched government budgets, we will ensure that governement contractors provide the government with the price it has been promised and all of the discounts to which it is entitled."
Contact Us.
If you have first-hand knowledge of a major procurement fraud on the U.S. government, Whistleblowers Against Fraud can help you Maximize Your Whistleblower Reward. Contact us to Blow the Whistle on fraud and receive a free strategic assessment of your whistleblower information.