Department of Veterans Affairs Contracts Are Vulnerable to Fraud

For decades, news stories have detailed fraudulent schemes involving Defense Department contracts and government health benefits, such as Medicare and Medicaid. However, one area of the government that involves both military service and healthcare is also vulnerable to fraud. 

Records from the Government Accounting Office indicate that the Department of Veterans Affairs (VA) distributes nearly $67 billion through approximately 90,000 contracts. This amount exceeds that of any other civilian department or agency. Some of the products and services provided to individuals who served in our armed forces include the following:

  • Medical treatment

  • Pharmaceuticals

  • Disability benefits

  • Vocational services

  • Assistance for veterans who own small businesses

  • Housing assistance

  • Funeral and burial services

One such example of VA misconduct involves a medical device and technology company named Omnicell. Its contract required certain pricing for the equipment it was providing to the VA. A diligent employee noticed that Omnicell often deviated from the agreed-upon amounts. The whistleblower reported this violation of the federal False Claims Act and filed what is known as a qui tam complaint. 

Omnicell eventually settled the case, paying a $4.3 million settlement to the government. Pursuant to the qui tam provision of the False Claims Act, the whistleblower who filed the case (known as the “relator”), was able to collect a portion of the recovery, which amounted to more than $785,000.

Any form of fraud involving government contracts increases the burden on taxpayers and potentially exposes the fraudulent party to serious consequences. Cases where businesses or individuals look to gain an unfair advantage against the VA are particularly egregious. Veterans made tremendous sacrifices to earn their benefits, and overcharging the department that supports them makes it even more difficult to manage an already overburdened system. 

Should you be aware of improper activity related to the VA or any other government department, speaking up is the right thing to do. Not only can you provide valuable assistance to beneficiaries and the public, but you can also possibly obtain a substantial sum of money like the Omnicell whistleblower.  

Kardell Law Group is a national leader in whistleblower representation. When you speak with us, we’ll listen to the information you have about government fraud and offer strong advocacy if a potential qui tam claim exists.