How Can I Protect My Business From Government Fraud Charges?

Business owners and other professionals who find themselves facing charges of government fraud must be aware that there may be substantial financial penalties for fraud. In some instances, officers, directors and managers could face individual criminal liability for certain illegal behaviors.

Brunvand & Wise Law Group‘s founding attorney, Bjorn Brunvand, is a Florida board-certified criminal trial attorney and nationally board-certified criminal trial lawyer. He has the experience and expertise to help you and your business with these serious federal charges.

Charges against federal defense contractors have been the most prevalent government fraud cases over the past several years and are almost always filed against the corporate entity itself. Among the many components of a Tampa government contract fraud case are:

• Assessment of liability
• Request for reimbursement/restitution
• Imposition of fines

The Government Is Increasing Efforts To Identify Fraud

Government fraud charges may be on the rise. The federal Department of Justice has even created a special procurement fraud task force to increase the number of fraud investigations against government contractors. Government agencies are also armed with anti-fraud regulations for pursuing government contractors.

The government may, at any time, launch investigations into government contracts. These investigations could relate to:

• Bids
• Procurement
• Cost allowability
• Accounting standards
• Pricing
• False claims
• Debarment and suspension
• Subcontractor issues
• Equitable adjustment claims and other compliance matters

If your business has a contractual relationship with the government and you have some indication that an investigation is imminent, an in-depth consultation with an experienced government fraud defense attorney is advisable. These prosecutions can be financially devastating to a company — due not only to the penalties that can be assessed but also to the preclusion from future business with the government. Early intervention by reputable counsel can often smooth the waters in this regard.

Personal Liability Risks For Company Leadership

While government fraud charges typically target the business entity, federal prosecutors increasingly pursue individual executives and managers. The Department of Justice’s “Yates Memo” explicitly prioritizes holding individuals accountable in corporate fraud cases. This means company officers, directors and employees with knowledge of fraudulent activities may face personal criminal charges, substantial fines and even imprisonment.

Corporate shields offer limited protection when government investigators uncover evidence of deliberate misconduct. Executives who sign false certifications, approve fraudulent billing or deliberately mislead government agencies face particular vulnerability. Even those who merely “should have known” about fraudulent practices may find themselves personally named in both criminal and civil proceedings.

Preventative Measures For Government Contractors

Businesses with government contracts can implement several proactive strategies to reduce fraud risk exposure. A comprehensive compliance program represents the foundation of fraud prevention. This should include regular training for all employees involved in government contracts, clearly written policies and designated compliance officers.

Regular internal audits of government billing practices prove invaluable in identifying and correcting potential issues before they trigger investigations. Documentation practices require special attention – maintaining detailed records of all contract-related decisions, communications and financial transactions creates critical protection when questions arise.

Establishing a whistleblower program within your organization also serves as an effective early warning system for potential violations. Consider retaining legal counsel experienced in government contracting to review procedures periodically and conduct mock audits. Many businesses find that investing in specialized contract management software provides additional protection by maintaining proper documentation and flagging potential compliance issues before they develop into larger problems.

Long-Term Consequences Of Fraud Convictions

A government fraud conviction creates repercussions far beyond immediate penalties. The most severe outcome involves debarment or suspension from future government contracting opportunities. This prohibition may extend beyond federal contracts to state and local government work as well, effectively cutting off crucial revenue streams for many businesses.

Reputational damage presents another lasting consequence, as conviction details become publicly available through government databases and media coverage. The combination of legal costs, penalties, lost opportunities and diminished standing in the marketplace can threaten even established companies’ viability.

We Can Protect Your Business Against Fraud Charges

If you are concerned your business may face government fraud charges, turn to Brunvand & Wise Law Group To schedule a free initial consultation, call 813-521-8069 or contact us online.