Practice Areas
CRIMINAL AND FRAUD INVESTIGATIONS
Organizations who find themselves the target of a criminal or fraud Investigation need to exercise extreme caution. The detailed facts of each case dictate how best to handle such investigations. No general rule applies. Thus, it is important that competent legal counsel be retained early in the investigation process so that the organization under investigation can take prompt and appropriate action.
Criminal or fraud investigations can lead to some of the most serious consequences in government contracting. An organization, and even individuals working for the organization, can be criminally prosecuted. Large fines and penalties can be assessed both against the organization and against individuals. For example, liability under the False Claims Act attaches to anyone responsible for the procurement fraud, not just to the party who signed the contract. Perhaps, one of the most severe remedies that affect the life of any organization is debarment from further government contracts, meaning the organization no longer would receive future government contracts.
Interestingly, the frequency of such investigations has diminished in recent years as more government investigative resources are channeled towards the war on terror. However, criminal investigations of procurement fraud will continue and, when they arise, they should be treated as serious and urgent matters to address.