fraud case studies
former grantee employee sentenced for embezzlement
An employee of an EPA grantee was sentenced in U.S. District Court for the District of Oregon to 21 months in prison, followed by 36 months of probation, and was ordered to pay $268,863 in restitution. In addition, the employee was suspended from participation in federal procurement and nonprocurement activities. The employee was the former office manager of a Soil and Water Conservation District in Oregon, a recipient of EPA grant funds.
As the office manager from 2000 until her resignation in June 2005, the employee was solely responsible for managing the finances of the organization to include making purchases and paying bills. While employed, she devised a scheme to embezzle money from the organization to pay for personal expenses. She made unauthorized charges to a credit card belonging to the organization for personal items including clothing, vacations, gifts, jewelry, and furniture. She then paid the credit card bill with the organization’s funds, some of which were derived from EPA grants.
This investigation was conducted jointly with the Federal Bureau of Investigation and the illamook County Sheriff’s Office.
what to do if you suspect fraudulent activity, waste, or abuse
✓ Do contact the OIG Hotline. ✓ Do discuss your concerns with the OIG. ✓ Do seek answers to your questions in the normal course of business. ✓ Do cooperate with the OIG and expect to be contacted and involved. ✗ Don’t “tip o” subjects of actual or pending investigation. ✗ Don’t feel compelled to “prove” a case or intent. ✗ Don’t “stop” your normal course of business unless otherwise directed.
when good money goes bad • true stories of grant fraud at epa