Reporting sale and leaseback fraud against the military, Homeland Security or other government agencies
This article shows you how to get a reward for reporting sale and leaseback fraud by a government contractor against the military or fraud against Homeland Security or any other federal or state government agency.
Sadly, 10% of government spending is fraudulently obtained because government contractors are cheating and defrauding the government. One example is sale and leaseback fraud. Fortunately, you can report sale and leaseback and receive a monetary reward while ending the practice. But you must strictly comply with the reward procedures when reporting sale and leaseback fraud or you won’t get a whistleblower reward or best ensure that the government even opens an investigation.
This article outlines how to properly report sale and leaseback fraud schemes and how to formally apply for a whistleblower reward for reporting sale and leaseback.
Examples and definition of sale and leaseback fraud
Sale and leaseback fraud occurs anytime a company or government contractor sells property or buildings to a related party and then leases it back from them.
Assume that a government contractor gets paid for many of its costs in performing the contract. In general, it is an allowable cost to bill the government for the cost of using a building. However, the rate or amount the government contractor receives is often higher if they pay rent versus the amount allowed for depreciation expenses if the government contractor owns the building. Therefore, some government contractors sell their building to a related entity and then lease the building back. That way they charge the amount of rent or lease payment for the building to the government contract. Needless to say, there are rules that apply when a government contractor leases a building or equipment from a related entity. Often the government contractor who leases back a building sold to a related entity charges more than allowed by these regulations. It is considered sale and leaseback fraud not to disclose the sale or leaseback to a related entity and it is also fraudulent to charge the lease price to the government contract. A sale and leaseback fraud case can easily be millions of dollars in fraud.
Tips for reporting sale and leaseback fraud schemes
To get a reward, you must use an attorney (on a contingency basis agreeing to give him a portion of the reward) to file qui tam lawsuit under the False Claims Act. It is not enough to call a hotline or even report it to the correct government official. That’s because the reward statute has strict requirements and procedures that must be followed.
Next, you need to have and then include in your reward application very specific information and details regarding the sale and leaseback fraud scheme. Because the government turns down most reward applications, it’s very important that you select an experienced attorney who has handled whistleblower reward cases.
How much reward for reporting sale and leaseback fraud?
The size of whistleblower rewards is calculated on the size of the sale and leaseback fraud. The whistleblower reward is between 15% and 25% percent of the amount the government collects back. For instance, if the amount of the sale and leaseback fraud is $10 million, the reward would be between $1.5 and $2.5 million.
How to report sale and leaseback fraud
The rest of this website (as well as the books authored by Mr. Hesch) take you step-by-step through the process of reporting sale and leaseback fraud against the government, whether it is the military, Homeland Security or any other government entity, and shows you how to report sale and leaseback fraud.
Mr. Hesch has over 15 years experience as an attorney investigating fraud against the government while working at the Civil Fraud Section of the U.S. Department of Justice in Washington, D.C. He now represents whistleblowers applying for rewards and is available to review your potential case and show you whether and how to report sale and leaseback fraud.
The link below “Do I have a case” shows you how to ask Mr. Hesch to review your sale and leaseback fraud case.
The link below “Report Fraud” has more details regarding how to get a reward for reporting potential your sale and leaseback fraud case against the government.