Smith Currie Oles LLP

False claims liability is a growing concern for contractors dealing with federal, state and city governments. At Smith Currie we have the expertise to help you both avoid and defend false claims.

The federal government and many states have enacted False Claims legislation. These statutes allow governments to levy fines and penalties against any person or entity that submits a false claim for payment of government funds. The federal False Claims Act also makes it a crime to knowingly make a false claim. False claims are not limited to fraudulent claims for payment for services not supplied or goods not delivered. Many government pay applications require a contractor to certify that it has complied with all contract requirements. An incorrect certification can lead to prosecution for a false claim. For example, a federal contractor who incorrectly certifies compliance of a federal statute such as payment of prevailing wages under the Davis Bacon Act may be found to have submitted a false claim even if its pay applications are otherwise complete and correct.

The federal False Claims Act and many state acts have whistleblower provisions designed to encourage a contractor’s employees to report false claims. These qui tam provisions allow a whistleblower to share in any recovery made on a false claim. Federal false claims recoveries have been averaging more than $3 billion a year with an increasing proportion of those recoveries coming in whistleblower initiated actions.

The best way to avoid false claims issues is to be thoroughly familiar with all of the compliance and certification requirements that accompany government contracting. Smith Currie attorneys are the authors of Federal Government Contractor: Ethics & Compliance Programs – Second Edition published by the Associated General Contractors of America. We can work with your company to audit your compliance with the numerous requirements that can inadvertently lead to false claims liability. We can assist you to develop compliance programs that will protect your business from false claims liability.

Smith Currie’s attorneys also have substantial experience in dealing with alleged false claims. We provide guidance and assistance to contractors in dealing with agency inspectors general and federal and state prosecutors to mitigate the impact of alleged false claims.