It has taken several years, but federal investigators and prosecutors are still on the trail of individuals who swindled the government during the coronavirus pandemic in 2020-21.
U.S. attorneys in Oklahoma City and Muskogee joined a nationwide enforcement action led by the Justice Department’s National Fraud Enforcement Division, the Small Business Administration and its Office of Inspector General targeting fraud in the SBA’s Paycheck Protection Program during the COVID-19 outbreak.
From June 12 to Sept. 1, federal prosecutors across the country facilitated fraud enforcement actions against more than 160 criminal defendants, reaching approximately $245 million in intended loss to American taxpayers.
The crooks include six who were prosecuted — and pleaded guilty — in federal district courts in Oklahoma City and Muskogee. A seventh person is charged in Tulsa’s federal district court…
MANAGEMENT & CULTURE (THE “TONE AT THE TOP”)
Fraud thrives in “sloppy” environments where leadership ignores the rules.
- The Fraud Triangle: For fraud to occur, three elements must be present: Pressure (the need for money), Rationalization (thinking “I deserve this”), and Opportunity (weak controls). You can only control the Opportunity.
- Whistleblower Hotline: Provide an anonymous way for staff to report “odd behavior.” Most internal frauds are caught via tips, not audits.
- Background Checks: Conduct credit and criminal record checks for all employees in financial or data-sensitive roles.
- Annual Ethics Training: Make sure every staff member knows that the company has a Zero Tolerance policy toward “borrowing” from petty cash or fudging overtime.