Federal fraud statutes cover a wide range of conduct, but one of the most serious is Major Fraud Against the United States, codified at 18 U.S.C. § 1031. This law targets large-scale fraud involving federal contracts or procurement, particularly when the alleged loss to the government exceeds $1 million.

What Does 18 USC 1301 Prohibit?

18 U.S.C. § 1031 makes it illegal to knowingly execute, or attempt to execute, a scheme intended to defraud the United States or any of its agencies involving procurement, grants, or contracts. This often arises in cases where contractors overbill, misrepresent costs, inflate bids, or otherwise mislead a federal agency to secure or maintain lucrative contracts.

Unlike general fraud statutes, this statute requires the alleged fraud to involve contracts, subcontracts, or grants valued at $1,000,000 or more, making it a tool primarily aimed at major government contractors.

The penalties under this statute are severe. A conviction can result in up to 10 years in federal prison, substantial fines, restitution, and debarment from future government contracts. If the fraud places the health or safety of individuals at risk, sentences may be enhanced even further. In addition to criminal consequences, companies or individuals may face parallel civil litigation under the False Claims Act.

Defending Against Major Fraud Against the United States Charges

Defending against major fraud allegations often requires addressing both the factual basis of the government's claims and the intent requirement under the statute. Honest mistakes, accounting errors, or contractual disagreements are not the same as criminal fraud. An experienced defense team can challenge the government's evidence, scrutinize contract terms, and expose weaknesses in how prosecutors attempt to prove intent.

How Sigal Law Group Can Help

At Sigal Law Group, we represent individuals and businesses accused of federal fraud, including cases under 18 U.S.C. § 1031. These are high-stakes prosecutions that demand aggressive, skilled defense. If you are under investigation for alleged major fraud against the government, contact our team immediately to protect your rights and your future.

Contact our offices today for a free consultation.