Legal Question in Military Law in
conflict of interest
Can a four star General own a business that sells its products to the U.S. military? e.g. a mine producing an exclusive mineral used in weapons manufacture.
2 Answers from Attorneys
Re: conflict of interest
If he has been retired for more than one year, the answer is "yes."
If he is still active, then he runs afoul of the conflict of interest provisions of the federal Procurement Act.
Re: conflict of interest
Mr. Aspinwall's reply is correct. Let me take this a step further.
If the general is defrauding the government or obtaining federal funds through fraud, overcharges or grossly negligent acts that cause a loss of government funds, then the general may be subject to the Qui Tam Act. It is an old statute from the Civil War days that was used to encourage private citizens to bring forward information on war profiteering.
The statute has been brought up to date and refurbished. If the government has been defrauded and a person brings this to light - jumping through the proper hoops - then the "relator" will get a portion any recovered money (treble damages) that the government obtains using the relator's information. The relator aslo gets a portion of the fines.
If you need more info on Qui Tam,go to dennisharmon.com
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