Waste | The Contracting Education Academy

August 9, 2018 By cs

How to spot 4 common types of public sector procurement fraud

Both public sector procurement and private sector procurement are excellent fields full of incredibly talented people, but every so often problems still come up.

Fraud isn’t something you want to experience in any field, and procurement is no different.

This is the first article in a series that will examine the most common types of public sector procurement fraud to help you keep up-to-date on red flags you should look out for.

In this article, we’ll cover all of the key points about 4 common types of public sector procurement fraud:

Eliminating or reducing competition
Biased supplier selection
“Corrupt” contract negotiation or management
Over- or false payment

Keep reading this article at: https://www.publicspendforum.net/blogs/peter-smith/2017/02/26/public-sector-procurement-fraud-the-four-common-types

July 9, 2018 By cs

Two men face federal charges for their role in stealing government property

U.S. Attorney Josh Minkler has announced that two men are facing federal charges for their role in stealing Humvee vehicles that were meant to be destroyed and sold for scrap.

Richard S. Treloar, 63, St. Louis, Missouri, faces seven counts of conversion of government property and seven counts of false statements; co-defendant Mark W. Collier 52, Bedford, Indiana, faces seven counts of false statements.

“Theft, waste, fraud and abuse of government funds and equipment is never acceptable,” said Minkler. “When it involves stealing from our military, it is a particularly egregious offense and those responsible will be held accountable.”

Treloar owned a St. Louis based company called Treloar Enterprises International, Inc. (TEI) which contracted with the Department of Defense’s Defense Logistics Agency (DLA) to demilitarize military vehicles, mostly High Mobility Multipurpose Wheeled Vehicles commonly known as Humvees. The Humvee is a four-wheel drive military light truck capable of being outfitted with armor, ballistic glass and high-powered weapons and is currently being used in the Iraq and Afghanistan theaters.

As part of Treloar’s contract with DLA, his company was responsible for demilitarizing the Humvees which would include eliminating the functional capabilities and inherent design features of vehicles. In many cases, that included the total destruction of the Humvee. When the Humvees were demilitarized, both Treloar and Collier verified in writing that the process had been completed.

From January 2014, through November 2015, TEI took delivery of all Humvees from Naval Support Activity Crane (Crane) which is located in Southern Indiana. To facilitate the contract, TEI opened a facility in nearby Spencer, Indiana, where the purported demilitarization took place. The indictment alleges Treloar converted at least seven fully armored Humvees for his own use and sold or attempted to sell them for his own benefit. The value of the Humvees was over $589,000. Both defendants also certified that each and every Humvee was demilitarized, when in fact they were not.

This case was investigated by DoD’s Office of Inspector General-Defense Criminal Investigative Service, Naval Criminal Investigative Services, and Defense Logistics Agency’s Office of the Inspector General.

“Today’s indictments demonstrate the commitment of the Defense Criminal Investigative Service and its law enforcement partners to protect the integrity of all Department of Defense programs,” said Special Agent in Charge John F. Khin, Southeast Field Office. “DCIS’ efforts in this investigation mitigated further significant loss and waste of taxpayer dollars from this fraudulent scheme.”

“Not only is fraud of this type a serious financial crime, the equipment involved is concerning,” said Mike Wiest, Special Agent in Charge of the NCIS Southeast Field Office. “There are no legitimate civilian uses for an armored military vehicle. NCIS will continue to work with our law enforcement partners to hold accountable those who siphon resources away from America’s warfighters.”

Assistant U.S. Attorney Bradley P. Shepard who is prosecuting this case for the government, said Treloar faces up to 10 years’ imprisonment on each count of conversion of government property and Collier faces up to five years’ imprisonment on each count of false statements.

An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.

In October 2017, U.S. Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting complex, large-scale fraud schemes, particularly those that exploit positions of trust.

Source: https://www.justice.gov/usao-sdin/pr/two-men-face-federal-charges-their-role-stealing-government-property

January 10, 2018 By cs

Pentagon task force’s $675 million in contracts to rebuild Afghanistan found wasteful

The Defense Department’s now-defunct business task force for rebuilding war-torn Afghanistan has again been found to have ineffectively spent its budget, devoting more than half of $675 million in contract obligations to indirect or support costs and favoring sole-source providers, a watchdog found.

The Special Inspector General for Afghanistan Reconstruction on Tuesday released its latest critique of the Pentagon’s Task Force for Business and Stability Operations, which worked from 2010-2014 to hire companies to help the Afghans with economic development in such areas as mining, irrigation and banking.

That body was disbanded in 2015, with many of its projects incomplete or turned over to the State Department and the U.S. Agency for International Development.

Keep reading this article at: http://www.govexec.com/contracting/2018/01/pentagon-task-forces-675-million-contracts-rebuild-afghanistan-found-wasteful/145077

January 2, 2018 By cs

How to fight big contract bloat

Have you ever hired a management consultant and said, “We have this problem and just want to know what we should to do next”?

Maybe your employees are unhappy, your systems are vulnerable, or you’re drowning in data. Maybe you’re struggling to get agreement among the managers about the best path forward. In theory, an experienced, objective third-party such as a management consultant can help. Right?

But when the consultants show up, you are left with one of two reactions: “That was a complete waste of money” or “We couldn’t have done it without them.”

Those leaning toward the “complete waste of money” end of the spectrum might say things like, “They told us what we already know.” This simple statement frames the problem with management consultants.

Too often, the work consultants are assigned is too broad in scope to be reasonably focused on and completed. They do hours of research, interviews and analysis only to deliver recommendations that underwhelm federal managers instead of sparking action.

Keep reading this article at: https://federalnewsradio.com/commentary-analysis/2017/11/how-to-fight-big-contract-bloat/

November 8, 2017 By cs

‘Fat Leonard’ probe expands to ensnare more than 60 admirals

The “Fat Leonard” corruption investigation has expanded to include more than 60 admirals and hundreds of other U.S. Navy officers under scrutiny for their contacts with a defense contractor in Asia who systematically bribed sailors with sex, liquor and other temptations, according to the Navy.

Most of the admirals are suspected of attending extravagant feasts at Asia’s best restaurants paid for by Leonard Glenn Francis, a Singapore-based maritime tycoon who made an illicit fortune supplying Navy vessels in ports from Vladivostok, Russia to Brisbane, Australia. Francis also was renowned for hosting alcohol-soaked, after-dinner parties, which often featured imported prostitutes and sometimes lasted for days, according to federal court records.

The 350-pound Francis, also known in Navy circles as “Leonard the Legend” for his wild-side lifestyle, spent decades cultivating relationships with officers, many of whom developed a blind spot to his fraudulent ways. Even while he and his firm were being targeted by Navy criminal investigators, he received VIP invitations to ceremonies in Annapolis and Pearl Harbor, where he hobnobbed with four-star admirals, according to photographs obtained by The Washington Post.

Keep reading this article at: https://www.washingtonpost.com/investigations/fat-leonard-scandal-expands-to-ensnare-more-than-60-admirals/2017/11/05/f6a12678-be5d-11e7-97d9-bdab5a0ab381_story.html

Both public sector procurement and private sector procurement are excellent fields full of incredibly talented people, but every so often problems still come up.

U.S. Attorney Josh Minkler has announced that two men are facing federal charges for their role in stealing Humvee vehicles that were meant to be destroyed and sold for scrap.

Have you ever hired a management consultant and said, “We have this problem and just want to know what we should to do next”?

The “Fat Leonard” corruption investigation has expanded to include more than 60 admirals and hundreds of other U.S. Navy officers under scrutiny for their contacts with a defense contractor in Asia who systematically bribed sailors with sex, liquor and other temptations, according to the Navy.

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