Falsely Induced Contracts
Falsely induced contracts happen when a vendor or contractor provides false information, thus fooling the government to enter into a contract. This is a form of Government Contract Fraud. This could be providing false info about qualifications or misrepresenting themselves to win the bid. Therefore, whistleblowers are important to help stop this fraud. They expose the bad contractors and ensure governmental agencies hire the most qualified vendors.
Example of Falsely Induced Contracts
In 2012, Ohio-based construction firm, Anthony Allega Cement Contractor, settled a False Claims Act case for $500,000. They received a contract to pave a new runway at Hopkins International Airport in Cleveland, Ohio. The government stipulated that Anthony Allega Cement needed to use a minority-owned or woman led sub-contractor for the job. The company falsely reported that a minority-owned subcontractor had performed work on an airport runway expansion project.
The contractor pretended to use a company named Chem-Ty Environmental to provide goods for the project. The vendor only used Chem-Ty to make it appear as though a minority-owned business had performed the work. A whistleblower came forward and admitted Anthony Allega Cement Contractor paid her even though she did not perform any work on the project.
The government stipulated that any company performing the repaving of the runway had to use a minority or woman-owned business. The United States Department of Transportation Department’s Disadvantaged Business Enterprise program explicitly states this.
This contractor previously has violated this stipulation in another project. City officials ended up banning the company.
Whistleblowers Help America
By exposing these fraudulent companies, whistleblowers help government agencies ensure companies are treated fairly. When a contractor lies in his or her proposal to win a bid, it hurts legitimate businesses. Whistleblowers who expose such illegal practices provide a valuable public service. The qui tam provisions of the False Claims Act entitle whistleblowers to a monetary award when the government recovers funds from the wrongdoers.
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Therefore, if you believe you have uncovered evidence of fraud involving a government-funded program, contact us today. Our attorneys have represented many clients in the past with complex cases. We will work tirelessly to obtain results on your behalf.