Government Contract Fraud Defense Lawyer
Federal Government Contracting Fraud Defense Lawyer in New York City
Experienced Defense Against Federal Procurement and Bid Fraud Allegations
Federal government contracts represent billions of dollars in public spending each year. From construction and defense contractors to IT vendors and logistics firms, businesses across the country, and especially in the New York area, depend on government procurement as a vital source of revenue. But with high stakes and complex regulations come increased oversight, and federal investigators aggressively pursue what they view as fraud against the U.S. government.
If you or your company is being investigated or prosecuted for government contracting fraud, also known as procurement fraud, you need experienced legal counsel immediately. At Sosinsky Law, we defend corporations, executives, contractors, and subcontractors in complex federal fraud cases throughout New York City and across the United States. We know how to challenge aggressive government tactics and protect our clients’ reputations, assets, and freedom.
What Is Government Contracting Fraud?
Government contracting fraud refers to any deceptive practice used to obtain or profit from a government contract. These are federal offenses, often prosecuted under statutes related to fraud, false claims, bid rigging, or conspiracy.
Common statutes used in these cases include:
- 18 U.S.C. § 1341 (Mail Fraud)
- 18 U.S.C. § 1343 (Wire Fraud)
- 18 U.S.C. § 1001 (False Statements)
- 18 U.S.C. § 371 (Conspiracy to Defraud the Government)
- 31 U.S.C. §§ 3729–3733 (False Claims Act)
- Federal Anti-Kickback Statute (41 U.S.C. § 8702)
Federal prosecutors often rely on these broad statutes to charge not only business owners, but employees, subcontractors, and consultants involved in procurement processes.
Common Types of Government Contract Fraud
1. False Claims or Invoices
Billing the government for services not rendered, inflating hours worked, or submitting falsified receipts or documentation.
2. Bid Rigging
Collusion among bidders to manipulate the outcome of the bidding process, such as pre-arranged winners, bid rotation, or price fixing.
3. Bribery and Kickbacks
Offering or accepting payments or benefits in exchange for awarding contracts, influencing specifications, or approving change orders.
4. Product Substitution or Defective Performance
Providing goods or materials that do not meet contract specifications or substituting lower-quality items while billing for higher-grade materials.
5. Double Billing
Billing more than one government agency for the same work or billing separately for services that should be bundled.
6. Progress Payment Fraud
Falsifying completion reports to receive advanced payment on milestones not yet achieved.
7. Small Business Set-Aside Fraud
Misrepresenting business size, ownership, or minority/veteran status to qualify for set-aside programs (e.g., SBA 8(a), HUBZone).
8. Timekeeping and Labor Mischarging
Falsifying timesheets or labor allocations, particularly in cost-plus or time-and-materials contracts.
Who Is at Risk of a Procurement Fraud Investigation?
While government contracting fraud is often associated with large prime contractors, anyone involved in the contracting process can be investigated or charged, including:
- Prime contractors and subcontractors
- Project managers, estimators, and engineers
- Government procurement officers (in rare cases)
- Small businesses and SBA program participants
- Consultants, compliance officers, or billing administrators
You don’t have to run a major defense firm to come under scrutiny. Even small firms doing business with the Department of Defense (DoD), General Services Administration (GSA), U.S. Agency for International Development (USAID), or other federal agencies may face audits, subpoenas, or criminal indictments.
Federal Agencies Investigating Government Contract Fraud
The federal government has multiple overlapping agencies tasked with detecting and prosecuting procurement fraud. You may be contacted by or investigated by:
- Department of Justice (DOJ)
- Federal Bureau of Investigation (FBI)
- U.S. Attorney’s Office (Southern or Eastern District of New York)
- Office of Inspector General (OIG) of the relevant agency (e.g., DoD, GSA, SBA, HHS)
- Defense Criminal Investigative Service (DCIS)
- Homeland Security Investigations (HSI)
- IRS-Criminal Investigation (IRS-CI)
These agencies often coordinate through multi-agency task forces, and their investigations can lead to both civil and criminal liability, including parallel proceedings.
Signs You May Be Under Investigation
If any of the following events have occurred, your company may already be under scrutiny:
- Receipt of a civil investigative demand (CID) or subpoena
- Visit from agents with a search warrant
- Employee interviews conducted by federal investigators
- Suspended or terminated government contracts
- Discovery of a qui tam whistleblower complaint filed under the False Claims Act
- Audit or debarment notice from a federal agency
Do not wait until formal charges are filed. Early intervention by a defense lawyer can often prevent an indictment or reduce exposure.
Criminal and Civil Penalties for Contracting Fraud
Depending on the scope and nature of the allegations, penalties for government contract fraud can include:
- Up to 20 years in federal prison (for wire/mail fraud)
- Significant fines and restitution
- Treble damages under the False Claims Act
- Civil monetary penalties of up to $11,000 per false claim
- Suspension and debarment from future federal contracts
- Asset forfeiture and seizure
- Damage to professional reputation and business viability
Even individuals not directly responsible for the alleged misconduct, such as executives or board members, can be held liable under federal conspiracy laws.
How Sosinsky Law Defends Procurement Fraud Charges
With years of experience in federal white-collar crime and fraud defense, Sosinsky Law is equipped to protect clients facing high-stakes allegations related to government contracts. We understand how these investigations are initiated, how prosecutors build their case, and how to respond strategically and aggressively. Our Approach Includes:
- Disproving Intent to Defraud – Most procurement fraud charges require that the accused knowingly and willfully defrauded the government. We show that any errors or misstatements were administrative, clerical, or made in good faith, not criminal in nature.
- Disputing Key Factual Allegations – We challenge the government’s assumptions about materials, specifications, and billing. Our defense often involves technical experts, engineers, and contract analysts who understand the industry standards.
- Debunking Whistleblower Claims – If the case originated from a qui tam lawsuit, we investigate the background, motives, and credibility of the whistleblower, who often stands to gain financially.
- Asserting Compliance Measures – We present evidence of internal controls, compliance programs, and training policies that show the company actively worked to prevent fraud.
- Negotiating Early Resolutions – When possible, we resolve matters before indictment, through civil settlements, non-prosecution agreements, or deferred prosecution agreements (DPAs). These options can protect your business while avoiding prison time and reputation loss.
- Going to Trial if Necessary – If prosecutors press charges unfairly, we’re fully prepared to fight in court. Our firm has successfully represented clients in some of the most serious federal fraud trials in New York.
Frequently Asked Questions About Government Contracting Fraud
What is the False Claims Act, and how does it relate to procurement fraud?
The False Claims Act allows the government, or whistleblowers, to sue businesses for submitting false invoices or information to obtain payment. Violations can result in civil and criminal penalties, including treble damages.
Can I be charged even if the contract was fulfilled?
Yes. If the government believes that you overbilled, misrepresented labor or materials, or manipulated the bidding process, you may still face fraud charges, even if the job was completed.
Are subcontractors at risk of prosecution?
Absolutely. Subcontractors can be named in procurement fraud cases, especially if they were involved in billing, materials procurement, or performance misrepresentations.
How long do these investigations typically last?
Procurement fraud investigations can last months or even years, especially if they involve whistleblowers or multiple agencies. Early legal representation is key to mitigating exposure.
Is it possible to resolve a contracting fraud case without going to trial?
Yes. Many cases are resolved through civil settlements or deferred prosecution agreements. The earlier your defense lawyer intervenes, the more options may be available.
Contact a Federal Government Contracting Fraud Lawyer in NYC
If you or your company is under investigation for government contracting fraud, every decision you make right now is critical. Federal prosecutors take these cases seriously, and the penalties can be devastating.
At Sosinsky Law, we defend clients facing procurement fraud, false claims, and other serious allegations involving federal contracts. Whether your case stems from a qui tam complaint, audit, or criminal referral, we’re here to protect your rights and fight for the best possible outcome. Call Sosinsky Law today to speak with an experienced government contracting fraud defense lawyer in New York City.