Sadly, nearly 10% of taxpayer money spent on the military is lost due to fraud against the military. The Department of Justice is asking for your help and is offering large monetary rewards for reporting military fraud. This article shows you not only how to report military fraud, but what to look for.
Examples of Military Fraud
Companies take advantage of the large amount of spending by the government relating to the military. They don’t think they will get caught, so they devise hundreds of schemes to charge more that it is entitled. It might be providing lower grade goods or lying about the services it provides.
The fraud isn’t limited to overseas spending, but is occurring here in the United States. Often, the military doesn’t even know it is being cheated. That’s why the government is willing to pay whistleblowers up to 25% of what it recovers back as a reward. The government relies heavily on whistleblowers to uncover military fraud. Over 75% of military fraud cases are brought by whistleblowers. Below are some common examples of military fraud followed by how to report it.
Common fraud schemes against the military include:
- billing for work or parts used on a commercial contract (mischarging)
- charging for services not actually rendered
- lying about any work or service required to be performed
- billing for unallowable costs (i.e. personal expenses, or excessive salaries)
- overstating about how much it cost to make or buy an item
- misstating the percentage of completion of the contract (i.e. false progress payment requests)
- not conducting all of the required tests on items (i.e. testing of only one in 10,000 instead of the required one in 100, or not testing at all)
- substituting a different or an inferior product than called for in the contract
- concealing the true ownership or value of property
There are a lot more ways people cheat the military, but this gives you an idea of the types of fraud against the military.
How to Report Fraud against the Military
It’s downright un-American to cheat the military. That’s why the U.S. Department of Justice is offering huge monetary rewards for reporting military fraud.
The government will pay up to 25% of what it recovers based upon your report of military fraud. That often amounts to over a million dollar reward. The largest rewards top $100 million.
However, knowing how to report military fraud is just as important as knowing about military fraud. One requirement is that you must use an attorney to file for a monetary reward under the federal False Claims Act. You must also follow the government’s strict procedures for applying for a government reward. You cannot simply call a hotline, but must file specific filings in federal court. That’s why you must use an attorney experienced with the False Claims Act to file for you. (Don’t worry, they’ll use a contingency fee and accept a portion of the reward as payment.) It certainly can be worth the effort because you can help protect military funding while at the same time getting a significant monetary reward. It’s time for you to learn how to report military fraud and how to step forward.