Dallas’ top watchdog has uncovered at least $1 million in losses and overpayments in city money, including the salary of an employee also working for Austin.
Dallas paid a vendor $227,000 more than was owed and paid $18,000 on a fraudulent invoice related to nonprofit spending, the city’s inspector general found.
The office of inspector general, which has been investigating potential cases of financial waste and fraud since January this year, is also reviewing additional cases in which the city may have overspent $1.7 million.
Dallas City Hall has been at the center of waste and corruption scandals involving city officials who took bribes to advance housing deals. Former council members have also been charged with embezzling funds and fraud.
It prompted city leaders to establish the inspector general office in 2022, and voters gave the office more independence two years later.
This type of fraud targets the supply chain and accounts payable departments of businesses.
- Invoice Manipulation: Criminals intercept a legitimate invoice between a supplier and a client and change the banking details to their own. The client pays the bill thinking they are paying their trusted vendor.
- Kickbacks and Bribery: A vendor secretly pays an employee of the purchasing company to ensure their bid is successful or to overlook inflated pricing.