Exposing Defense Fraud: Holding Contractors Accountable

5 min read time
Headshot of Clark J. Bolton, a Tampa-based whistleblower and qui tam lawyer at Morgan & Morgan Reviewed by Clark J. Bolton, Attorney at Morgan & Morgan, on May 23, 2025.
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Military defense spending is meant to provide our armed forces with the equipment, services, and technology they need to stay safe and effective. But when contractors or government officials take advantage of this funding for personal gain, it doesn’t just waste taxpayer dollars; it can put lives at risk. Defense fraud is a serious issue, and whistleblowers play a vital role in uncovering these abuses.

If you’ve witnessed fraud tied to military contracts or defense spending, you have the right to speak up, and protections are available to help you do it safely.

 

What is Defense Fraud?

Defense fraud occurs when companies or individuals involved in military contracts intentionally misrepresent or overcharge for goods and services. Some of the most common forms include:

  • Overbilling for labor, materials, or services that were never delivered
  • Selling defective or unsafe equipment that fails to meet military standards
  • Double charging for the same work across multiple contracts
  • Falsifying testing data for weapons, vehicles, or gear
  • Inflating the costs of research, development, or logistics

These fraudulent practices can occur at any level of the defense supply chain, from large aerospace manufacturers to private security firms and subcontractors. In extreme cases, faulty equipment or false data can directly endanger military personnel in the field.

 

The Role of Whistleblowers in Defense Fraud Cases

Defense contracts are often massive in scale and tightly controlled, making fraud difficult to detect from the outside. That’s why whistleblowers are so essential. People working inside these companies or in related government roles are often the only ones with access to the information needed to uncover wrongdoing.

Under the False Claims Act, whistleblowers can file a qui tam lawsuit on behalf of the government. If the case leads to a successful recovery, the whistleblower may receive a portion of the recovered funds, often between 15% and 30%, as a reward for exposing the fraud.

But whistleblowers serve a higher purpose beyond financial incentives: they protect public money, support military readiness, and promote government transparency.

 

Legal Protections for Whistleblowers

Reporting defense fraud can feel risky, especially when it involves powerful corporations or government agencies. Fortunately, whistleblower laws are designed to protect those who step forward. These protections typically include:

  • Confidential reporting options
  • Protection against retaliation, such as firing, demotion, or harassment
  • Reinstatement or compensation if adverse actions are taken against the whistleblower
  • Legal representation throughout the process to help safeguard your rights

Before filing a report or going public, speaking with an attorney experienced in whistleblower claims is critical. Doing so can help ensure you follow the right legal procedures and remain protected.

 

How Legal Professionals Can Help

Blowing the whistle on defense fraud isn’t as simple as reporting wrongdoing. It involves careful documentation, strict timelines, and sometimes ongoing cooperation with investigators. A skilled legal team can guide you through each step, from filing your claim to securing the whistleblower protections you’re entitled to.

They’ll also ensure that your claim is built on strong evidence and submitted in the appropriate legal format, maximizing your chances of success while minimizing personal risk.

 

Why Whistleblowers Matter

When defense fraud goes unchecked, everyone loses, especially those who serve in uniform. Misappropriated funds weaken national security, delay innovation, and compromise military readiness. Whistleblowers are crucial in correcting the course, often becoming catalysts for reform, oversight, and accountability.

Speaking up takes courage. But with the right legal support, you don’t have to do it alone.

 

Courage Deserves Backup, Let’s Take Action Together

Morgan & Morgan is proud to support whistleblowers in their fight for truth and accountability. You may be entitled to protections and compensation if you’ve witnessed defense fraud or suspect illegal activity tied to a military contract. Our attorneys can help you understand your rights and take action. Contact us today for a free case evaluation and learn how we can support you in your fight for justice. 

Disclaimer
This website is meant for general information and not legal advice.

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