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Project on Government Oversight
 

 

 

 

Survey of Defense Contractor Signatories of the "Position Paper: Reform of the Federal Civil False Claims Act": Partial Listing of the Fines and Settlements Paid for Fraud, Waste and Abuse in Government Contracting

January 1, 1994 

 

This survey is by necessity only a partial listing of cases. Most examples of fraud against the government are never detected and prosecuted. Of those that are, though, many qui tam cases are still under seal and voluntary disclosures are protected from public scrutiny. All other active government investigations are not made public. Due to the amount of fraudulent activity, the Project on Government Oversight has limited the time frame of this survey to those cases resolved since fiscal year 1990 until February 1994.

This research has been drawn from several sources. As a result, the type of information listed for each case has varied by source. Numbers in brackets denote references to sources listed on page eight. The most recent cases are listed first. The Project on Government Oversight has made every attempt to avoid duplicate listings of cases.

Few voluntary disclosures have been made public and they have been noted as such. Qui tam actions with public settlements have also been noted.

  • Out of the 22 signatory companies - 20 (over 90%) have been involved in fraud, waste and abuse in government contracting practices.
  • The total amount of the penalties and settlements paid by these companies is over half a billion dollars ($566,630,483).
  • There were a total of 83 examples of fraudulent activity identified in the survey of 22 companies.
  • 64% of the penalties or settlements paid by these companies were over one million dollars.
  • 17 out of the 22 signatory companies were multiple offenders.
  • One company, General Electric, had 15 examples of fraudulent activity.
  • While only 11 of these examples were False Claims cases, they collected over $125 million dollars ($125,522,306).


Founded in 1981, the Project On Government Oversight (POGO) is a nonpartisan independent watchdog that champions good government reforms. POGO's investigations into corruption, misconduct, and conflicts of interest achieve a more effective, accountable, open, and ethical federal government.

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