Georgia Thompson Found Guilty in Corruption Case

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Georgia Thompson was found guilty of 2 federal felonies of misapplication of funds and participation in a scheme to defraud the state of the right to honest services.

Thompson was a purchasing division supervisor who was part of a team of state employees who reviewed bids for a three-year state travel contract. The selection process has more recently been referred to as “Travelgate.” Continue reading

Men Involved in 2004 Voter Suppression Sentenced to Jail

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The four men involved in the [tag]tire slashing[/tag] of 25 vans rented by Republicans to help transport voters to the polls in November 2004 have all been sentenced to jail. Milwaukee Circuit Court Judge Michael Brennan said the vandalism was not just a harmless prank. Regarding their attempts at [tag]voter suppression[/tag], he said:

They see you tampering with something they consider sacred and that’s the ballot box.

The sentences: Continue reading

60 Minutes Story About Waste in Iraq

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60 Minutes ran an interesting story tonight, focused on the alleged abuse of funds for rebuilding Iraq by a company named Custer Battles. The story indicated that the company was paid tens of millions of dollars to provide services it was not qualified to provide, and in fact did not provide.

One example: A contract that called for Custer Battles to deliver a certain number of trucks. Some of the trucks were towed in, as they did not run. Company officials allegedly stated that the contract did not specify that the trucks must be in working condition.

Read the transcript of the story here.

Milwaukee County Child Welfare System Contractor Reimbursements Found to be Inappropriate

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An audit of the Milwaukee County Child Welfare system was completed by state auditors at the direction of the Joint Legislative Audit Committee. The audit found almost $700,000 of questionable and unallowable costs.

The Child Welfare system had 153 full-time employees in June 2005, while outside contractors had about 500 staff members to provide the bulk of the services. From January 2001 through June 2005, the program spent a total of $493.7 million. In 2004 alone, program expenditures totaled $103 million. Continue reading

Financial Statement Fraud in the Katrina Aftermath: A Whirlwind of Opportunities

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Written by Tracy L. Coenen, CPA, CFF

Fraud Magazine – January/February 2006

Hurricane Katrina altered lives forever. Thousands of displaced survivors have lost their jobs as businesses struggle to survive. However, other opportunistic firms shamelessly have taken advantage of the disaster by altering their financial statements. Here’s how auditors and fraud examiners can find this hidden crime. Continue reading