This article outlines how to receive a reward for reporting fraud by a company that supplies the federal government or General Service Administration (GSA) with products made in countries not part of the Trade Agreement Act (TAA), such as China or Taiwan. It also outlines how to receive a whistleblower rewards for reporting Buy America Act fraud for products made anywhere outside of the United States if this clause in included in the contract.

It is a violation of the False Claims Act for federal government contractors to sell goods or supplies that were made in countries that are not parts of the Trade Agreement Act (TAA). A whistleblower can receive a significant reward for reporting a company selling goods or supplies to the federal government that are made in countries such as China, India, Malaysia or Taiwan as prohibited by the Trade Agreement Act.

Many federal government agencies also include “Buy America Act” clauses in federal government contracts. Unless this clause is waived by the agency for a particular contract and reason, these Buy America Act clauses are enforceable and the government pays rewards to those who report when goods are made overseas. Buy America Act fraud is not limited to the countries discussed under the Trade Agreement Act, but applies to all things made overseas and supplied on a government contract. Thus, it is also a violation of the False Claims Act for federal government contractors to sell goods made in any country other than the United States if the contract contains a Buy America Act clause in the contract, and rewards are paid for reporting Buy America Act fraud.

Fraud under the Trade Agreement Act (and General Service Administration fraud) occurs more often than you might think and by both big and small companies alike. For instance, in 2005, two national office supply companies were caught violating the Trade Agreement Act (TAA) and GSA rules because they were selling office supplies to the government that were made in China, Taiwan and other countries not part of the Trade Agreement Act. The whistleblowers were given rewards of $700,000 and $1.5 million each for reporting this GSA and TAA fraud.

Because the GSA has a website where government agencies can buy thousands of types of goods and supplies, it is fairly easy for a company to get included on the list by certifying that the products are made in the U.S. or a qualifying country. The GSA does not audit or verify the country of origin for each product listed. Therefore, many companies are tempted to commit fraud by lying about which country the products are made in, thinking they will not get caught.

The False Claims Act offers rewards for whistleblowers to step forward and report Trade Agreement Act fraud and GSA fraud.

Similarly, rewards are paid to whistleblowers reporting Buy America Act fraud.

Not only are rewards available, but it is the right thing to report the fraud because it is unfair completion for those willing to lie to sell items on the GSA website or under government contracts that are made in China or other countries to compete with honest businesses following the rules.

Companies with direct federal contracts are similarly prohibited from using goods or supplies imported products from countries, such as China and Taiwan, that don’t have reciprocal trade agreements with the United States. Direct federal government contracts also prohibited contractors from using goods from any country if the contract contains a Buy America Act clause.
If you work for a company that is supplying the federal government with products made in China or Taiwan (or other non-TAA countries), you may be eligible for a significant reward if you properly report the TAA or GSA fraud. The same type of reward is available if your company has a Buy America Act contract clause that is being violated.

Even if you are a competitor, if you have credible information to prove that the company is defrauding the federal government by using products from these non-Trade Agreement Act countries, you are eligible for a reward. But you must have specific and detailed facts. It is not enough to just think that the company must have bought the goods in China because the prices were low, but you need proof that they originated in a country that is not part of the Trade Agreement Act or that the Buy America Act clause was violated.

If your company (or a competitor) is supplying goods to the federal government that are made in China or Taiwan or are violating a Buy America Act provision, and you can prove it, you stand to gain a sizeable reward. This applies to direct contracts with the military or any agency, as well as listing products on the GSA website.

Mr. Hesch would be pleased to review your potential Trade Agreement Act (TAA) fraud, General Service Administration (GSA) fraud, or Buy America Act fraud allegation and determine if he can represent you to apply for a reward.

See the link at the bottom of the page below “Do I have a case” to have Mr. Hesch review your potential whistleblower reward for reporting fraud under the Trade Agreement Act (TAA), fraud under the General Service Administration (GSA), or fraud under the Buy America Act.

See the link at the bottom of the page below “Report Fraud” to learn more about the government’s whistleblower reward program paying rewards for TAA fraud, GSA fraud or Buy America Act fraud.

Click on this link to read this article in pdf format: Trade Agreement Act and General Service Administration Fraud PDF version