Denition: Fraudulent taking of personal property or money with which one has been entrusted.
Discrepancies between reported facts and supporting documentation.
Key employee does not take time off.
Inability or refusal to provide supporting documentation.
fraud case studies
grantee sentenced to prison for embezzling federal funds
A resident of Fairbanks, Alaska, was sentenced in U.S. District Court for the District of Alaska to 9 months in prison, 3 years probation, and ordered to pay a $104,000 fine. This sentencing followed the resident’s guilty plea to one count of embezzlement of federal funds.
EPA awarded three grants to two separate entities and the Alaska resident was the project manager on all three grants. The purpose of the grants was to train and certify people in asbestos and lead paint removal. The investigation determined that the individual embezzled some of the funds for personal use, including the operation of his wife’s construction company.
In addition to the criminal sentence imposed on the individual, the two entities, the construction company, and the individual’s wife and daughter were suspended from participation in government procurement and non-procurement activities.
This investigation was conducted jointly with the Federal Bureau of Investigation.
when good money goes bad • true stories of grant fraud at epa