The seal of the U.S. Department of Justice is seen on a podium during a press conference. The DOJ has launched its largest-ever victim compensation fund for survivors of sex trafficking facilitated through Backpage.com. (Photo by Anna Moneymaker/Getty Images)
The Department of Justice (DOJ) says the last member of a family that operated a years-long Department of Veterans Affairs (VA) disability scheme has been sentenced to prison. The VA Office of the Inspector General (VA-OIG) says the scheme stole more than $1.1 million in VA funds.
The backstory:
The DOJ says Kelly M. Lee-Carroll, 58, of Kent, Washington, served in the Army for three months in 1986 and then joined the Army Reserves from 1986-1994 and in 2012 claimed a service-related disability and started receiving caregiver funding in 2013. Prosecutors said Lee-Carroll qualified for some disability payments but not…
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.