How to Protect Yourself in the High-Stakes World of Commercial Contracting
In the world of commercial construction, large sums of money, complex billing structures, and tight deadlines create the perfect storm for disputes. Sometimes, what starts as a contractual disagreement spirals into something far more serious—criminal fraud allegations.
Whether you’re a general contractor, subcontractor, project manager, or business owner, being accused of construction fraud can threaten your business, your license, and your freedom. At Simmons & Wagner, we understand both the pressures of the industry and the legal complexities behind these cases. As former Orange County District Attorneys, we’ve prosecuted and defended high-stakes fraud allegations—and we know how to fight back.
Here’s what you need to know if you’re facing construction fraud accusations, and how to protect yourself and your company.
What Is Construction Fraud?
Construction fraud refers to intentional deception or misrepresentation in connection with a construction contract, payment application, or building project. These cases often involve allegations of:
- Misbilling (e.g., billing for work not performed or materials not delivered)
- Overcharging clients or government entities
- Double billing for labor or equipment
- Using substandard or unauthorized materials
- False change orders or inflated invoices
- Kickbacks or bid rigging
- Falsifying certifications, permits, or lien waivers
These accusations can arise in both public and private sector projects, and may be pursued under both state and federal law, especially when government contracts are involved.
Who Gets Accused?
While owners and executives are often targeted, fraud charges can also be filed against:
- Estimators and accountants
- Construction managers and site supervisors
- Subcontractors and vendors
- Administrative staff handling billing and reporting
Even if you didn’t personally profit or authorize the conduct, you could be accused based on “willful blindness,” lack of oversight, or false documentation tied to your signature or position.
Why Are Construction Fraud Cases So Common?
These cases often stem from:
- Audits or compliance reviews
- Disputes between contractors and clients
- Whistleblower complaints (from employees or competitors)
- Overruns on public projects
- Government inquiries into grants, subsidies, or SBA loans
Because construction projects involve layers of subcontractors, change orders, and documentation, it’s easy for a miscommunication, mistake, or paperwork error to be misinterpreted as intentional fraud.
What Are the Legal Consequences?
Construction fraud is typically charged under statutes such as:
- Wire fraud or mail fraud (if invoices or contracts are sent electronically or by mail)
- False claims (especially in government-funded projects)
- Theft by deception
- Conspiracy
- Public corruption or bribery laws
Penalties can include:
- Felony convictions
- Restitution orders
- Asset forfeiture
- Loss of contractor licenses
- Prison sentences
- Debarment from future public contracts
Common Defense Strategies in Construction Fraud Cases
At Simmons & Wagner, we tailor our approach to the details of each case—but several key strategies frequently arise:
- Lack of Criminal Intent: We show that discrepancies in billing or performance were due to oversight, miscommunication, or industry practice—not intentional fraud.
- Reasonable Business Practices: Construction billing is often complex and subjective. We work with forensic experts to demonstrate that the billing methods used were reasonable, customary, or previously approved.
- Delegation and Oversight: You may not have been directly involved in the alleged conduct. We can show that you relied in good faith on trusted employees, subcontractors, or accountants.
- No Financial Gain: If you didn’t personally benefit from the alleged misconduct, it can significantly weaken the government’s case.
- Civil vs. Criminal Distinction: We argue that the dispute should be handled through contract law or arbitration, not criminal prosecution—especially in cases lacking clear proof of intent.
Why You Need Defense Counsel Early
The earlier you hire experienced legal counsel, the more options you have:
- Respond strategically to subpoenas or audits
- Avoid making statements that could be used against you
- Prevent criminal charges through early intervention
- Protect your company, assets, and licenses from collateral damage
As former prosecutors, we understand how these cases are built—and how to stop them from escalating.
Accused of Construction Fraud? We’re Ready to Defend You.
If you’re under investigation or have been charged with construction-related fraud, do not wait. These cases move fast, and prosecutors are increasingly aggressive in pursuing convictions.
At Simmons & Wagner, we bring decades of courtroom experience and real-world insight to construction fraud defense. We fight to protect your business, your reputation, and your future—every step of the way.
Contact us today for a confidential consultation.