Government Contract Fraud Allegations in Iraq War

It’s no secret that the defense industry has long been troubled by individuals and corporate entities who have gone to great lengths to commit fraud against taxpayers and the federal government. Qui tam attorneys often deal with these types of claims. As such, it may come as less than a shock that recently The New York Times reported that a number of federal agencies are currently investigating a growing list of suspects who are believed to have illegally profited, by way of government contract fraud, from the war in Iraq.

During a war, occurrences of fraud significantly increase due to the large number and monetary value of available government contracts. Fraud is difficult to detect due to the vast amounts of contracts given, and in most cases whistleblowing is the starting ground for an initial investigation. Whistle blowers can file a fraud suit “pro se”, meaning without legal representation, on behalf of the U.S. Government, using a provision called qui tam. Attorneys can then choose to become legal representation in the ‘whistleblowers’ case, who is properly referred to as the ‘relator’.

The Department of Justice, the FBI, the Army Criminal Investigation Command, the Department of Justice, and other governmental agencies are investigating a number of leads into alleged government contractor fraud and kickback schemes involving the buying and selling of billions of dollars of equipment, weapons, and various other items for use by American and Iraqi forces spread throughout Iraq. A number of discrepancies have been noted, by the agencies investigating this matter, in documents for recording where items—intended for use by Iraqi security forces—were or were not delivered. According to The Times, by late August, seventy-three criminal investigations had been set in motion to probe allegations of government contract fraud in Iraq, Afghanistan, and Kuwait. At issue are contracts worth more than $5 billion and bribes in excess of $15 million. Many of these investigations may have started due to whistleblowing cases filed under the provision of qui tam. Attorneys, relators and defendants are initially under “seal” and therefore the origins of such investigations remain hidden until much later in the proceedings.

Investigations have been opened into a range of offenses believed to have been perpetuated by individuals of varying rank and power. Offenses run the range of low-ranking employees who may have submitted false claims for less than $2,500 to other cases involving senior-level workers engaging in possible bribery, product substitution, double-billing, and bid rigging when attempting to secure or fulfill a government contract. Investigations of this type are usually triggered by the filing of a whistleblowing case.

Needless to say, contract fraud of the goverment is heavily frowned upon by all citizens: it not only ‘cheats’ the government in a time of crisis but in many cases leaves soldiers with inadequate food or machinery or short of necessary supplies thereby potentially endangering the lives of thousands or tens of thousands of people. This is why, in these cases, whistleblowing should be commended as a brave and patriotic act and should be forwarded to knowledgeable qui tam attorneys who can then file the claim. Commenting on this story Alan J. Konigsberg, a partner at the New York and New Jersey law firm of Levy Phillips & Konigsberg, LLP stated that “It’s a tragedy and an outrage that certain corporations and individuals would seek to take advantage of the U.S. government while it is trying to bring stability to Iraq and combat terrorism all over the globe. We, as a country, owe a debt of gratitude to those brave individuals who have come forward to speak out against those who have tried to reap unholy profits.”

In past cases, whistleblowing has helped the government to recover billions of dollars in misappropriated funds. Because of the whistleblower’s vital role in helping to protect the nation’s economy, they are allotted a minimum of 15 percent and a maximum of 30 percent of any money recovered by the government regardless if a suit was filed by an individual via qui tam without an attorney. If you have firsthand knowledge, as well as corroborating evidence, that a fraud that has been perpetuated against the government of the United States of America, you may wish to speak with a lawyer who is skilled in handling government (contract) fraud cases or has applicable knowledge as an attorney in qui tam lawsuits. For more information, please contact Alan J. Konigsberg at (212) 605-6200.