What is a False Claims Act violation within the Construction Industry?
As part of government-subsidized projects, construction companies enter into competitive bids and Request for Proposals (“RFP”). This renders the government vulnerable to potential False Claims Act (“FCA”) violations when the construction companies use substandard materials, report work completed when it was not, submit fake inspection reports, or submit cost overruns not contracted for in the RFP. Fraud and abuse within the construction industry has been a common problem for decades.
On the federal level, FCA is found at 31 U.S.C. §§ 3729-3733 and each state has laws the mirror their federal counterparts. When whistleblowers step forward with potential false claims reports, our attorneys confidently, and in confidence, guide them in the complaint submittal process as well as when the complaint is held under seal while it is under review by the court. Meanwhile, our attorneys work with the government entity and enforcement agency (United States Justice Department or the state Attorney General’s Office) to investigate the allegations.
Ever since the Civil War, the FCA has been the government’s most effective weapon to combat fraud and abuse against the government. Since 1986, the FCA has allowed for more than $60 billion dollars in recovery against those that defraud the government. A recent example showed how a construction company by the name of Circle C allegedly defrauded the government by submitting certifications (or claims) to the government that its payroll procedures complied with government laws. However, the construction company not only did not properly certify its payroll procedures but also underpaid its sub-contractors in violations of the terms of the government contract. The whistleblower was a former Circle C employee
If the government decides to intervene and litigate the case (which occurs approximately 20% of the time), the relator whistleblower’s share is decreased to 15-20 percent of the government’s settlement or verdict monetary recovery. If the government decides to allow the whistleblower to independently litigate the case, the relator whistleblower’s share is 20-25 percent of the government’s settlement or verdict (monetary recovery). You can call us at (877) 789-9707 or complete the online form on this site to request any information and speak with a knowledgeable FCA attorney. Our whistleblower lawyers guide you every step of the way to ensure maximum recovery. They also ensure the vigorous defense to any corporate retaliation.