Fraud perpetrated on the U.S. government takes money out of the pockets of every U.S. citizen. Major types of fraud on the government generally fall into the following categories:
Government’s major role in our health care system, through Medicare and Medicaid, has resulted in health care fraud being the largest type of fraud committed on the government. Those companies and individuals with whom the government transacts to take care of its citizens, regularly cheat the government out of billions of dollars.
Defense Contractor Fraud
Early day defense contractors, dating back to the Civil war, are attributed with having sold the Union Army decrepit horses and mules in poor health, faulty rifles and ammunition, and spoiled rations and provisions. As a result, the False Claims Act was passed by Congress on March 2, 1863. Central to the False Claims Act is that it permits citizens to sue on behalf of the government and be paid a percentage of the recovery. Defense contractors continue to be a significant source of fraud on the government, with the only change appearing to be the sheer magnitude of the fraud.
The IRS Whistleblower Office allows whistleblowers to help bring to justice U.S. tax cheats. Dodd Frank Wall Street Reform and Consumer Protection Act created the SEC Whistleblower Office and CFTC Whistleblower Office, both of which regulate enormous parts of our financial markets. These relatively new whistleblower programs are in direct response to the enormous financial frauds committed in so many areas of our economy.
Oil & Gas Fraud
Oil & Gas royalties derive from the rich natural resources that we all own as U.S. citizens. The companies who have come to control these resources represent one of the single highest sources of income for the U.S. government, our government. An antiquated system of reporting and collection leaves this area of our economy ripe for abuse, by some of the largest corporations on the globe.
Many large companies have whole divisions dedicated to selling directly to the government. The government’s enormous appetite for goods and services is fulfilled by a complex system of GSA contracts and GSA schedules. The staggering sums spent by government, and the complexities of transacting with the government, have resulted in procurement fraud of all types being an increasing focus of whistleblower actions.