Reporting product substitution fraud

This article shows you how to get a reward for reporting product substitution fraud against the military, Medicare or other government agencies.

Approximately 10% of all money spent by the federal government is lost due to fraud, such as substituting inferior products on government contracts or programs, whether it is the military, Medicare or any other government contract or program. When government contractors cheat or defraud by product substitution, it hurts each of us and increases our taxes.

The good news is that the government has a whistleblower reward program that invites you to report product substitution fraud. To get a reward for reporting product substitution fraud, you must carefully follow the reporting requirements or you not only won’t get a reward but the government might not conduct a full investigation of your allegations of someone cheating by substitution a different or inferior product under their government contract.
This article outlines how to correctly report product substitution fraud and how to apply for a whistleblower reward for reporting product substitution fraud against the military, Medicare or another government contract.

Tips for how to report product substitution fraud

Here are a few basic tips for reporting product substitution fraud to give you an idea of what is required to obtain a whistleblower reward or to get the government to open an investigation of the contractor that is substituting another product under its contract.

First, you can’t simply call the inspector general for the government agency or other hotline to report product substitution fraud to be eligible for a whistleblower reward. Rather, the only way to get a reward for reporting product substitution fraud is to use a lawyer (on a contingency basis that works for a percentage of any whistleblower reward) to file qui tam suit under the False Claims Act. Your attorney must scrupulously follow all of the procedures in the reward statute to be eligible for a reward for reporting product substitution fraud. Therefore, it is vital that you select a lawyer experienced with handling reward applications for product substitution fraud.

Second, your attorney needs to report very specific information about the product substitution fraud. The government rejects three-fourths of whistleblower reward applications, which is another reason why selecting an experienced attorney is key.

How much reward for reporting product substitution fraud?

The size of any whistleblower reward is based on the size of the product substitution fraud case. The reward is in the range of 15 and 25 percent of the amount the government recovers back from the government contractor defrauding the military, Medicare or other agency by cheating through substituting products.

Examples of product substitution fraud

The military frequently specifies in its contracts with defense contractors that they use a certain quality or grade of materials, components and parts. Sometime there are milspec requirements, and other times a particular specification is included in the government contract. It is product substitution fraud to deviate or substitute any other product, material or pars that that spelled out in the contract. It can also be product substitution fraud to use an unauthorized supplier. (Medicare and other government agencies also can have specific product requirements.)

The government vigorously pursues product substitution fraud and is willing to pay large rewards if you report a contractor deviating from government contract specifications. There are so many different ways contractors cheat through product substitution. It ranges from using the wrong grade of milk to feed soldiers to an inferior grade of metal used to build airplanes. The common denominator is that if the contract specifies a particular product, quality, or other attribute regarding a product, part or component, it is fraud to deviate from the requirements even if the contractor thinks the substituted product is the equivalent or just as good as the specification in the contract.

How to report product substitution fraud

This website and books authored by Mr. Hesch guide you step-by-step through the entire process of reporting product substitution fraud against the military, Medicare or other government agency. This website, and if he becomes your attorney, Mr. Hesch can show you how to report product substitution fraud and apply for a whistleblower reward.
Mr. Hesch has vast experience with investigating fraud against the federal government while working at the Civil Fraud Section of the U.S. Department of Justice in Washington, D.C. He is ready to review your information and show you whether and how to report product substitution fraud.

The link below “Do I have a case” shows you how to ask Mr. Hesch to review your potential product substitution fraud case and how to get a reward for reporting product substitution fraud.

The link below “Report Fraud” has more information regarding how to get a reward for reporting fraud against the government, including product substitution fraud.