Anyone who offers, provides, solicits, or receives a kickback in connection with government contracts or subcontracts may be in violation of the federal and state Anti-Kickback statutes. As of 2010, any claims submitted to the federal government involving kickbacks in violation of the anti-kickback laws are automatically considered false claims under the False Claims Act. With these laws, Congress has made clear that steering business to favored individuals in exchange for kickbacks to secure government contracts corrupts the federal procurement process and will not be tolerated. It has unambiguously authorized the use of its most powerful weapon in fighting fraud, the False Claims Act, to root out this unlawful conduct and recover all money paid to any contractor engaging in kickbacks to secure government contracts.
A “kickback” is defined under the law as any money, fee, commission, credit, gift, gratuity, thing of value, or compensation of any kind which is provided, directly or indirectly, to any prime contractor or subcontractor or their employees for the purpose of improperly obtaining or rewarding favorable treatment in connection with a prime contract, or in connection with a subcontract relating to a prime contract. Kickbacks can be meals, money, trips, souvenirs, gift certificates, invitations to attend or participate in any sporting, hunting, or other event, or any other item of value.
Bribing a current or former government official is equally unlawfully and disfavored. Offering or promising anything of value, directly or indirectly, to a current or former official for favorable treatment on a government contract may constitute an unlawful bribe and may be the basis for FCA liability. A bribe can take many forms, including any gratuity, favor, discount, entertainment, hospitality, loan, forbearance or other item having monetary value. It can also include services as well as gifts of training, transportation, local travel, lodgings and meals, regardless of whether provided in-kind by purchase of a ticket, payment in advance, or reimbursement after the expense has been incurred.
Individuals who engage in kickbacks and bribes to obtain government contracts and share in the illicit proceeds their conduct facilitates circumvent the military contracting process causing harm to legitimate small businesses seeking to do business with the government, the taxpayers left paying for these schemes and those service people who are forced to rely on corrupt contractors who place their financial interests ahead of those individuals serving their country.
If you believe someone has offered, paid or accepted a kickback or bribe in connection with a government contract and you would like to learn more about or would like to bring a whistleblower lawsuit, the qui tam lawyers at Keller Grover LLP can help you. These whistleblower lawyers understand qui tam litigation, including the whistleblower protection provisions, and strive to achieve the best possible results for their clients.