Defense Contractor and Aerospace Whistleblower Lawyer

Fraud on defense and aerospace contracts costs taxpayers billions and can put service members at risk. If you know about defective pricing, nonconforming parts, falsified testing, mischarging or false cybersecurity certifications, federal law protects you for reporting it and may reward you for it.

On this page: Types of fraud · False Claims Act · Your protections · Classified information · Steps to take · Fees · FAQ

Southern California is home to one of the largest concentrations of aerospace and defense work in the country, from El Segundo and Long Beach to Palmdale, Irvine and San Diego. Engineers, quality inspectors, program managers, cost analysts, IT and cybersecurity staff and subcontractor employees are often the first to see when a contractor cuts corners on a government contract. Smith Trial Group represents those insiders. Attorney Cardon Smith spent years defending Fortune 500 companies in complex litigation and served as a law clerk to a federal judge. Consultations are free and confidential.

Common Types of Defense Contractor Fraud

• Defective pricing. Withholding or misstating cost or pricing data during contract negotiations, in violation of the Truthful Cost or Pricing Data Act (formerly the Truth in Negotiations Act), so the government overpays.
• Product substitution and nonconforming parts. Delivering parts that do not meet contract specifications, using unapproved suppliers, or supplying counterfeit electronic components.
• Falsified testing and inspection. Certifying that parts or systems passed tests or quality inspections that were skipped, altered or failed.
• Labor and cost mischarging. Billing hours to the wrong contract, charging commercial work to cost-plus government contracts, or billing for unqualified personnel.
• Cybersecurity noncompliance. Misrepresenting compliance with Department of Defense cybersecurity requirements, such as DFARS 252.204-7012, NIST SP 800-171 controls or CMMC certification, while handling controlled unclassified information. The Department of Justice launched its Civil Cyber-Fraud Initiative in 2021 to pursue these cases under the False Claims Act.
• Small business and set-aside fraud. Using a front company to win contracts reserved for small, veteran-owned or disadvantaged businesses.
• Kickbacks and bribery involving subcontracts or government officials.

The False Claims Act and Whistleblower Rewards

The federal False Claims Act makes contractors that knowingly submit false claims, or make false statements to get paid, liable for three times the government’s damages plus an inflation-adjusted penalty for each claim. A whistleblower can file a qui tam case on the government’s behalf and generally receives 15 to 25 percent of the recovery if the government intervenes, or 25 to 30 percent if the whistleblower proceeds without the government. Because defense contracts are large and run for years, these cases can involve significant recoveries.

The case is filed under seal in federal court and served on the government, not the contractor. The Department of Justice investigates, often with the Defense Criminal Investigative Service and the Department of Defense Office of Inspector General, before deciding whether to intervene. See how a qui tam case works.

Whistleblower Protection for Contractor Employees

10 U.S.C. 4701 (Defense contractor whistleblower protection)

Federal law (10 U.S.C. 4701, formerly 10 U.S.C. 2409) prohibits Department of Defense contractors, subcontractors, grantees and subgrantees from retaliating against employees who disclose information they reasonably believe shows gross mismanagement of a DoD contract, a gross waste of DoD funds, an abuse of authority, a substantial and specific danger to public health or safety, or a violation of law related to a DoD contract. Protected disclosures include reports to a member of Congress, an inspector general, the Government Accountability Office, a DoD contracting official, law enforcement, or a supervisor or other person at the company responsible for investigating misconduct.

A complaint generally must be filed with the Department of Defense Inspector General within three years of the retaliation. If the agency denies relief, or does not act within the time the statute allows, the employee can bring the case in federal court. A similar law, 41 U.S.C. 4712, protects employees of contractors with civilian agencies such as NASA and the Department of Energy.

False Claims Act retaliation

The False Claims Act’s anti-retaliation provision (31 U.S.C. 3730(h)) protects employees, contractors and agents who take lawful steps to stop false claims. Remedies include reinstatement, double back pay, special damages and attorney’s fees.

California law

California employees are also protected by Labor Code 1102.5, which prohibits retaliation for reporting suspected violations of law internally or to a government agency, and by the California False Claims Act for fraud on state and local agencies.

Classified and Controlled Information

Defense cases require extra care. Never remove classified material, export-controlled technical data or controlled unclassified information to support a claim. There are lawful channels for disclosing concerns that involve classified programs, including inspectors general and congressional intelligence committees. We will talk with you about what you can share with your lawyer and how, before you collect or send any documents.

Steps to Take Now

1. Write down what you saw, including contract or program names, part numbers, dates and the people involved. Keep the notes private.
2. Do not discuss a possible case with coworkers or confront management before you get advice.
3. Note any internal reports you have already made and the responses you received.
4. If you have faced retaliation, note the dates. The three-year deadline under 10 U.S.C. 4701 and the False Claims Act retaliation deadline run from the retaliation.
5. Call for a confidential consultation.

Our Role and Fees

We handle whistleblower cases on a contingency fee basis, so you pay no attorney’s fees unless there is a recovery. Smith Trial Group is based in Newport Beach and represents aerospace and defense workers throughout Southern California. See also federal whistleblower lawyer and proving whistleblower retaliation.

Frequently Asked Questions

Can a subcontractor employee bring a defense contractor whistleblower case?

Yes. The False Claims Act applies to anyone who causes false claims to be submitted to the government, including subcontractors and suppliers, and 10 U.S.C. 4701 protects employees of DoD subcontractors as well as prime contractors.

Does cybersecurity noncompliance support a False Claims Act case?

It can. If a contractor knowingly misrepresents its compliance with contractual cybersecurity requirements to win or get paid on a government contract, that can be a false claim. The Department of Justice has pursued these cases under its Civil Cyber-Fraud Initiative since 2021.

What is the deadline for a defense contractor retaliation complaint?

Under 10 U.S.C. 4701, a complaint generally must be filed with the DoD Inspector General within three years of the retaliation. False Claims Act retaliation claims generally must be filed within three years. Other claims may have shorter deadlines, so get advice promptly.

Will my employer find out I filed a qui tam case?

A qui tam complaint is filed under seal and is not served on the contractor while the government investigates. Your identity may eventually be disclosed if the case proceeds, which is one reason to plan the case carefully with a lawyer.

Can I use company documents to support my case?

Only with care, and never classified or export-controlled material. Talk with a lawyer before collecting any documents. Taking only what is reasonably necessary, through proper channels, protects both you and the case.

How are whistleblower lawyers paid?

We work on a contingency fee basis. You pay no attorney’s fees unless there is a recovery.