What is Procurement Fraud?

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A quid pro quo, or something given or received for something else, is common in business. It is the equivalent of ‘you scratch my back and I will scratch yours.’ While there is generally nothing wrong with mutually beneficial business arrangements, a quid pro quo favor can amount to procurement fraud in certain instances.

Procurement fraud occurs when a favor, payment, or other advantage is dishonestly exchanged, causing loss to the government, public, or private stakeholders. A common procurement fraud scheme involves a procurement manager awarding a contract for goods or services to a certain vendor in exchange for some sort of benefit or personal gain for awarding the contract.

When a Quid Pro Quo Favor Amounts to Procurement Fraud

Quid pro quo arrangements may amount to procurement fraud based on a number of factors. For example, arrangements where a contract-awarded vendor is paid well above market price is common in procurement fraud scenarios. The artificially inflated contract price is the incentive for the vendor to give cash or other benefits to the procurement manager who awarded them the contract.

Procurement fraud scenarios often include decision-making managers who have personal ties to the vendor, vendor costs that are significantly inflated above market price, contract bids that are manipulated by the use of fictitious vendors, and cash payments of bribes or kickbacks.

When a quick pro quo favor involves any of the above elements, it is beyond a simple business arrangement and may rises to the level of criminal procurement fraud.

Investigating Allegations of Procurement Fraud

The government invests significant resources to investigate and prosecute cases of alleged fraud perpetrated against the government. The DOJ’s Federal Procurement Fraud Unit, formerly the “Defense Procurement Fraud Unit,” helps coordinate law enforcement resources in prosecuting procurement fraud cases. The Unit handles a variety of fraud cases affecting civilian procurement and cases involving the Department of Defense’s multi-billion dollar procurement contracts for equipment and services. Procurement fraud cases can involve product substitution, false testing, cost mischarging, defective pricing, and illegal kickbacks.

Fraud Defense Attorney

Alleged procurement fraud scenarios are aggressively investigated and prosecuted. If you are being investigated, or have been charged with procurement fraud, reach out to our firm today. Ashley D. Adams has significant experience defending clients accused of complex white collar crimes, including procurement fraud. She will work diligently to ensure that your rights are protected.

Contact us or call now (480) 219-1366 for a case evaluation. Have your questions answered and obtain the peace of mind that comes from having a former Assistant U.S. Attorney on your side.


Accused of Internet Sales Fraud in Phoenix

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Crimes involving the internet are taken seriously by federal and state law enforcement and prosecutors. Specifically, Internet fraud crimes are heavily prosecuted. Internet fraud is the use of Internet services to defraud someone or otherwise take advantage of them.

Internet sales fraud is a type of internet fraud that encompasses a variety of fraudulent activity. Internet sales fraud schemes may involve failure to deliver on the promised merchandise, misrepresenting a product that is for sale, selling counterfeit items, selling stolen products, or not issuing a promised rebate.

A common Internet merchandise scam offers supposedly pricey goods like electronics, designer clothing, or other high-end items, and entices prospective buyers with promises of deep discounts. The use of online ads or other online advertising methods may be used to reach the prospective buyers. A few things may happen in such a scam:

  • The buyer may be directed away from a legitimate site and to the scammer’s site to input their payment information. The buyer will never receive any merchandise, and now the scammer has the money paid, the buyer’s personal information, and credit card number.

  • The buyer may make payment and be sent merchandise that was misrepresented. The product delivered may be subpar, perhaps a knockoff imitation of a designer brand, and is not what was advertised to the buyer.

Internet sales fraud may involve a merchandise scam, as well as identity theft, credit card or banking fraud, or other cybercrimes. Internet fraud schemes are often complex and involve multiple people across numerous states or countries.

The rise of internet fraud each year led authorities to focus resources on investigating and prosecuting these types of crimes. In the government’s zeal to stop Internet fraud innocent people may become targets of prosecution and rights may be violated during investigations.

If you are under investigation for, or being charged with, Internet sales fraud or related crimes, we urge you to consult with an experienced white collar criminal defense attorney immediately. Mounting a strong defense from the start helps ensure the most favorable outcome in your case.

Internet Sales Fraud Defense

Ashley D. Adams, PLC attorneys are well-versed in Internet fraud cases. If you have been accused of internet fraud, cybercrimes, or other computer crimes, our firm is prepared to defend your rights. Our attorneys will work hard to provide you with the best possible defense.

There may be aspects of your case that can be challenged in court in the early stages, so it is essential that you contact us as soon as possible. For a case evaluation contact us via the web or call (480) 219-1366.