Anti-fraud official accused of …. fraud

Posted on May 2nd, 2007

Johnnie Frazier, the inspector general for the U.S. Department of Commerce, is being investigated by a congressional committee based upon allegations of fraud, waste, and abuse. Among the allegations:

  • Bid rigging for friends – Arranging a $150,000 no-bid contract for a company related to a member of Frazier’s staff.
  • Charging the government for improper travel, which was unrealted to government duties – It is even alleged that he told people some of the trips were to find a new job.
  • Wasting money remodeling an office – It is alleged that Frazier had walls in the office removed to create more open space, but then had the walls rebuilt when an employee complained about working in a cubicle, with the whole process costing more than $100,000.
  • Preparing fraudulent documentation related to the hiring of a “pre-selected candidate”
  • Ordering subordinates to prepare job descriptions for positions that would ensure Frazier’s friends would qualify
  • Destroying emails and documentation related to his midsdeeds

Frazier’s job as inpector general includes detecting and preventing “waste, fraud, abuse and mismangement.” The fraud allegations apparently come from whistelblowers in Frazier’s department.

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  4. SEC alleges that KPMG auditors ignored red flags
  5. Fraud charges against owner of Jackson Hewitt franchises

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