I am a US Army CID Agent, Major Procurement Fraud Unit.
We were notified of a contractor who has failed to pay their subcontractor. It is a service contract, and 90% of the work is done by subcontractors. I am trying to determine if the company has committed a false claim by submitting vouchers to the government, which included the subcontractors invoices. According to the KO, by including the subcontractors invoices, the prime contractor certified them as complete, and thus made a false claim. Is this accurate? Did the company committ a crime?
It could be, but you'll need to investigate to determine whether and which statute(s) has (have) been violated. Potentially, the contractor may be liable for making False Statements (18 USC 1001) and/or criminally and/or civily under the False Claims Act (18 USC 287 and 31 USC 3729-33) and perhaps conspiracy (18 USC 286, 371) as well as others depending on the specific facts.
Open full Question Details
You should discuss this matter with legal counsel to make a determination of how to proceed in this matter.