Photo:
Eclipse Sportswire & U.S. District Court – edited composite
Owner-trainer Mick Ruis, who campaigned three-time Grade 1 winner Bolt d’Oro, reportedly faces federal criminal charges of cheating the federal government with contracts that he and two business partners made with the U.S. Navy.
Ruis, Isaiah Diehl and Shawn Huang pleaded not guilty this month in San Diego federal court to accusations of conspiracy to commit wire fraud and major fraud. The government claims Huang’s scaffolding business used its small-business status to get a favorable construction contract with the Navy and then pivot the actual work to bigger, ineligible companies.
The case, which was filed Aug. 21 in a sealed indictment, was reported Saturday by the San Diego Union-Tribune’s Alex Riggins.
Federal prosecutors say Ruis, Diehl and Huang defrauded Navy Sea Systems Command twice in…
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.