Navigating False Claims Allegations: Comprehensive Legal Guidance for Government Contractors

Written by Richard Vartain

Nothing is more concerning to small or midsize government contractors than the prospect of a false claims allegation during the bidding process or performance of a federal contract or subcontract. Such allegations may implicate the company, its employees, or its subcontractors, and can arise from various sources, including whistleblowers, employees, prime contractors, or government agencies equipped with investigators and auditors. In some cases, the Department of Justice (DOJ) becomes involved in a criminal or civil fraud investigation, potentially triggering suspension and debarment proceedings by the affected contract agency. These cascading regulatory and legal challenges can have devastating consequences for the company and its leadership.

At Liff, Walsh & Simmons, we bring extensive experience to navigating these high-stakes situations. Our team includes attorneys who have served as DOJ civil prosecutors, tried cases under the False Claims Act, managed complex investigations and settlements, and overseen internal investigations in private enterprises. We understand the complexities of these matters from every angle—prosecutorial, investigative, and corporate—and are well-equipped to guide companies through the legal and regulatory minefields they present.

When an allegation surfaces, whether through an internal report, whistleblower suit, or external investigation, we urge contractors to act promptly. Immediate consultation with legal counsel is essential to safeguard the company’s interests. At Liff, Walsh & Simmons, we begin by thoroughly assessing the allegations, assembling relevant facts, and, when appropriate, engaging with opposing counsel, government investigators, auditors, or prosecutors. Our goal is to identify the focus of their inquiry and work toward a swift and favorable resolution.

Effectively addressing such allegations requires credibility, deep legal knowledge, and meticulous fact-gathering. It also demands an understanding of the company’s track record as a responsible corporate citizen, including its adherence to ethical standards, training programs, and internal controls. Moreover, a clear understanding of the intentions and objectives of the investigating party is vital before formulating a response. These principles underpin the comprehensive legal strategy we provide.

In instances where the matter remains internal, we evaluate the facts to determine whether disclosure to the contracting officer or the agency’s inspector general is required under the Federal Acquisition Regulations. If disclosure is necessary, we assist in drafting and submitting the appropriate documentation and negotiating resolutions, including addressing potential suspension or debarment concerns.

Should a situation escalate to a criminal or civil fraud suit or an agency suspension and debarment proceeding, our attorneys are prepared to manage the litigation or, where necessary, assist in retaining skilled trial counsel. Our team also provides strategic support to ensure robust representation before federal courts or agency decision-makers.

Liff, Walsh & Simmons is committed to helping government contractors navigate these critical challenges with precision, integrity, and unparalleled expertise.

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Liff, Walsh and Simmons’ Government Contracts practice area continually developments that may impact you or your business.?For questions, please contact Richard Vartain.?

This article provides general information and is not a full analysis of the matters discussed.?It may not be relied on as legal advice.?Richard Vartain, a Liff, Walsh & Simmons attorney licensed to practice law in Maryland, the District of Columbia, and Virginia, contributed to the content of this article.?