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Navigating Federal Investigations Under 18 U.S.C. § 1031
The Major Fraud Act, 18 U.S.C. § 1031, imposes severe penalties on defense contractors who knowingly execute schemes to defraud the US government. The law applies to contracts valued at $1 million or more and covers a range of activities, including contract pricing, product testing, and certifications. Defense contractors facing federal procurement fraud audits must navigate complex investigations and potential criminal charges. According to Eisner Gorin LLP Federal Blog, early legal intervention is critical in preventing severe penalties and protecting corporate reputation.