Justice Department
Investigation of Alleged Fraud in an Air Force Contract Gao ID: GGD-87-31BR January 29, 1987In response to a congressional request, GAO provided information on the Department of Justice's investigation of allegations of fraudulent contractor claims against the Air Force.
GAO found that: (1) three of the four prosecutors the U.S. Attorney assigned to the case believed there was no viable basis for prosecution because of vague, conflicting, and overlapping regulatory principles, and the Air Force's past treatment of similar claims by the contractor; (2) although two Federal Bureau of Investigation (FBI) agents reviewed the case and determined that Justice should prosecute the contractor for submitting fraudulent claims, and FBI headquarters found the claims outrageous and wrong, FBI agreed with the U.S. Attorney that prosecution was not possible; and (3) after discussing the matter with the U.S. Attorney on several occasions, Justice agreed that there was insufficient evidence to prosecute the contractor.