Red Flags of Procurement Fraud VIII

Numerous Post-Award Contract Change Orders

     After the low bidder (usually) gets the contract, the winner might amend or modify the contract to add similar requirements and therefore needs to pay more.  As usual, just the issue of additional requirements does not always indicate fraud, but if it is an ongoing situation which occurs time and again, it may be a red flag.

Credit is given to Charles Piper and the July/August 2012 issue of Fraud Magazine.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Red Flags of Procurement Fraud VII

Questionable minority or disabled ownership.

     Federal, state and some local municipalities award a certain percentage of their contracts to minority and/or diabled owned businesses.  However, many of these businesses that claim to be minority and/or disabled owned are not.  Sometimes, payoffs will occur between the people making the contracts and those businesses which claim to be minority owned.

Credit is given to Charles Piper and the July/August 2012 issue of Fraud Magazine for this article.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Red Flags of Procurement Fraud VI

Agent fees - often contractors or vendors are required to provide or certify their costs and prics.  Anything listed as "agent fees" needs to be scrutinized.  An exact explanation as to what exactly the agent has done to earn these fees must be provided.

Credit is given to Charles Piper and the July/August 2012 issue of Fraud Magazine for this article.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Red Flags of Procurement Fraud V

Another "giveaway" to what might be contract and procurement fraud are abonormal bid pattterns.

     Most companies that receive multiple bids for high dollar procurements will log the bid prices received on a bid abtract or similar document.  If most bid prices are high and one is low there is an obvious anomaly.  For example, if you observe three similar high bids and one low bid it may be an indication that the three high bidders never expected an honest low bidder to submit a price proposal for the same contract.  The low bid may be honest while the three high bids are intentionally inflated.

   Credit is given to Charles Piper and the July/August 2012 issue of Fraud Magazine.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Red Flags of Procurement Fraud IV

Complaints about the quality and quantity of the winning bid.

     It goes without saying that the organization or person that wins a bid should provide the best and winning service for which it was bid.  However, if the winning bidder actually provides substandard service, then this is a clear sign that their is something amiss.  If the winning bidder is not providing the standard of service and care that the winning bidder is expected to provide, yet wins the bid anyway, then the possibility of fraud should at least be explored. 

My thanks to Charles Piper and the July/August 2012 edition of Fraud Magazine for this article.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Red Flags of Procurement Fraud III

Another red flag of procurement fraud is also very simple - listening to the complaints of the losing bidders on a project.  Once again, it is human nature for people to complain if they lose out on a project.  However, the bidders that were not awarded a contract sometimes will be able to point out issues that others may have missed.  Examples include:

1.  The winning bid was either too high or too low as compared to the median or mean of other bids;
2.  Other bidders are not contacted at all;
3.  It is obvious that all bids are being awarded to the same company.

     Contacting losing bidders may be an easy way of discovering if something else is occurring under the surface.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Red Flags of Procurement Fraud II

The most obvious clue to procurement fraud is when the same entity is repeatedly awarded contracts for the same services or products.  Why is the same entity getting the contract all the time?

     Now, just because the same entity is awarded contracts again and again does not necessarily signify fraud.  After all, the company could be doing a good job and deserves the contracts.  But, the law of averages eventually catches up. 

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Red Flags of Procurement Fraud

Contract and procurement fraud is a constant issue in today's world.  With government contracts worth possibly hundreds of thousands, if not millions of dollars, the incentive to acquire such contracts can be overwhelming.  As a result, some organizations and people will resort to fraud to get these contracts. 

   Contract fraud is the use of deceipt or trickery to obtain a contract.  In a bidding war to obtain a contract, it should be the bidder or organization which offers the best value or the best experience to obtain the contract.  When fraud is used, however, back door payments and personal enrichment are used instead.  When this happens, everyone loses.

   We will spend the next few postings exploring contract and procurement fraud.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

The strange case of Robert Vesco

Robert Vesco - a white collar criminal who eventually died in Cuba.

http://en.wikipedia.org/wiki/Robert_Vesco

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Identity Theft in the Southern District

Identity Theft and Government theft in the Southern District of Texas

http://www.justice.gov/usao/txs/1News/Releases/2012%20November/121116%20-%20Melchor-Sanchez.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Embezzlement in the Western District

Employee embezzlement in the Western District of Texas

http://www.justice.gov/usao/txw/press_releases/2012/Arreguy%20Guilty%20Plea%20Midland.pdf

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Heath Care Fraud in the Southern District

Health Care Fraud and Identify Theft in the Southern District of Texas.

http://www.justice.gov/usao/txs/1News/Releases/2012%20November/121114%20-%20Shittu.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Notable Ponzi Schemes

Back to posting after a few days off.

Courtesy of CNBC and their excellent show, "American Greed," here are some examples of notorious Ponzi schemes.  Note the similarities as to how the schemes are conducted.

http://www.cnbc.com/id/41722418?__source=msn|mostwanted|&par=msn

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Brief Hiatus

Posting will resume again Monday November 12, 2012.

Too busy with lawyer stuff!

------------->>>>>>>>>>>>>>gene

Bank Fraud in the Northern District

OK - this is not really a "fraud" per se, but it is interesting.  Be careful of whose bank you rob.

http://www.justice.gov/usao/txn/PressRelease/2012/NOV2012/nov6walker_jacory_bank_robbery_sen.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Bank Fraud in the Eastern District

Bank Fraud in the Eastern District of Texas

http://www.justice.gov/usao/txe/News/2012/edtx-wcc-mccullars-110612.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

Timely Notice on Election Fraud

This timely notice from the Eastern District of Texas reminds us of how important is our vote and the penalties for election fraud:

http://www.justice.gov/usao/txe/News/2012/edtx-election-102412.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Tax Return Fraud in the Southern District

Tax Return Fraud in the Southern District of Texas


http://www.justice.gov/usao/txs/1News/Releases/2012%20October/121025%20Gore.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

 

The Sad Case of Judge Samuel Kent

The Southern District of Texas, where I live and practice law, is also the home of the most recent case of a Federal Judge who was brought up on criminal charges and later pled guilty and resigned his post.

   Obstruction of Justice (the crime to which Judge Kent pled) is usually considered a white collar crime.  However, Judge Kent's fall from power is a cautionary tale of the abuses of power while in office.

http://en.wikipedia.org/wiki/Samuel_B._Kent

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

Charles Barksdale

Charles Barksdale - White Collar Fugitive

http://www.cnbc.com/id/48987796

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

                                             

Have a great and fraud-free day.

 

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk