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Worst Fraud Cases of 2018

The January/February 2019 edition of the Association of Certified Fraud Examiners’ Fraud Magazine® includes an article by Sarah Hofmann, CFE, titled “5 Most Scandalous Fraud Cases of 2018.” The article highlights five significant fraud cases uncovered in 2018, as well as three additional cases described as “dishonorable mentions,” that were selected based on the number […]

Industry Insights on Fraud Part II: Healthcare

The bi-annual Report to the Nations released by the Association of Certified Fraud Examiners (ACFE) conveys data regarding (among other things) fraud losses by industry. One of the industries where a high volume of fraud cases have been reported in the ACFE studies is healthcare. In the past five studies published by the ACFE, the […]
October 4, 2018

Governmental Institutions Continue to be Susceptible to Fraud

Data from the Global Fraud Study, published bi-annually by the Association of Certified Fraud Examiners (ACFE), provides occupational fraud insights by industry. The chart below shows some of the most active industries in the Washington D.C. metropolitan area covered in the Global Fraud Study. While the median losses reported for the government and public administration […]

Fraud Risks in the Wake of Natural Disasters

When natural disasters occur, such as the recent Hurricanes Harvey and Irma, companies and citizens often contribute their time and funds to assist with recovery efforts. Unfortunately, natural disasters and the related recovery efforts have historically been a breeding ground for fraudulent schemes that take advantage of people’s generosity, as well as government funding. As […]

NCI, Inc. Reports $18 Million Embezzlement by Corporate Controller

Last week, NCI, Inc. reported that it fell victim to $18 million of embezzlement by its corporate controller. Read the Company’s Press Release here. NCI is a Northern Virginia-based provider of enterprise solutions and services to U.S. defense, intelligence, health, and civilian government agencies. The controller reportedly embezzled $5 million in 2016, and $13 million […]

Is Your IRS Notice Real?

The latest incarnation of aggressive scammers impersonating IRS agents features fake IRS notices arriving by e-mail or snail mail. According to the IRS, the fake notices labeled as “CP2000”, purport to be related to the Affordable Care Act and request information related to 2014. For further details, see the IRS announcement on this topic. The CP2000 […]

Supreme Court Upholds Implied Certification Theory for False Claims

In a unanimous decision, the Supreme Court ruled in Universal Health Services v. Escobar that the implied certification theory is a valid basis for False Claims Act liability. Under this theory, a government contractor’s claim or invoice can be held as fraudulent if the contractor “fails to disclose non-compliance with material statutory, regulatory, or contractual […]

Supreme Court Hears Oral Arguments in Major False Claims Act Case

On April 19, I was fortunate enough to attend oral arguments at the Supreme Court for Universal Health Services v. Escobar. Although the facts of the case were tied to filings for reimbursement under Medicaid, the legal question at hand – whether the submission of an invoice to the government is an implied certification that […]

Nonprofits Sued for Return of $2.1 Million in Donations

More than two dozen local, state and national nonprofit agencies are being sued for the return of $2.1 million in donations in a Waco, Texas based lawsuit. A trustee for Life Partners Holdings claims the donations were made by the CEO from funds he fraudulently received from the company before it filed for bankruptcy last […]

Sham Cancer Charities Shut Down

The Cancer Fund of America and Cancer Support Services raised approximately $75 million in donations for the fight against cancer, the problem was that less than 5% was actually being used for the intended mission while the remaining funds went to the charities’ organizers and their friends. According to articles in the Washington Post and […]