Product substitution fraud happens when a government contractor swaps in a cheaper or non-American part for the one the contract requires, without the government’s approval. It can violate the False Claims Act, and insiders who know about it may bring a qui tam lawsuit.
Product Substitution Fraud occurs when a government contractor intentionally switches a part (often one of lesser quality) for the part specified in the government’s contract. Defense contracts routinely specify the quality or grade of parts the government wants used. They may also require certain parts to be sourced from American companies to support what are sometimes known as “Buy American” programs. Government contractors may be tempted to use different, cheaper parts or to source them from non-American subcontractors as a way to increase profits. If a government contractor switches a part that has clear specifications without getting approval from the government, it may be in violation of the False Claims Act.
If you know of fraud being perpetrated against the United States or one of the state governments and you would like to learn more about or would like to bring a qui tam whistleblower lawsuit against the wrongdoer, the whistleblower attorneys at Keller Grover LLP may be able to help you. The whistleblower lawyers at Keller Grover LLP understand qui tam litigation, including product substitution fraud and strive to achieve the best possible results for their clients.