WASHINGTON, D.C.—The DOJ’s newly created National Fraud Enforcement Division announced Friday a wave of arrests, convictions and sentences in fraud schemes that targeted more than $340 million in taxpayer funds over just the past week.
The actions, spanning April 10 through April 17, involved cases from across the country targeting fraud in federal programs including Medicare, Medicaid, COVID-19 relief funds, unemployment benefits, Paycheck Protection Program loans, Social Security disability payments and tax credits.
“The National Fraud Enforcement Division is committed to prosecuting anyone who steals from American taxpayers,” Colin McDonald, assistant attorney general for the division, said in a statement. “Over the past seven days…
PROCUREMENT & EXPENDITURE (STOPPING KICKBACKS)
Procurement fraud usually involves inflated invoices or “fictitious” vendors.
- The Three-Way Match: Never pay an invoice unless you have matched the Purchase Order (PO), the Delivery Note (signed), and the Supplier Invoice.
- Vendor Master File Review: Review your vendor list annually. Look for suppliers with the same bank details or physical addresses as your employees.
- Dual Authorization: Implement a “Two-to-Sign” rule for all EFT payments above a certain threshold (e.g., R5,000).
- No “Cashing” of Checks: If you still use physical checks, strictly prohibit “Cash” as a payee and store blank checks in a dual-lock safe.