Term
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Definition
| General Services Administration, the federal government's housedeeping agency. The GSA Basically is the government agency in charge of over seeing the governmental suppliers |
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Term
| What News Paper ran the story of the GSA fraud. |
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Definition
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Term
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Definition
| Peter Roman is the chief investigator for the subcommittee of the us. Senate Com. |
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Term
| What was the first break in the case? |
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Definition
| The President of Art Metal Furniture company appeared, uninvited, and demanded an opportunity to testify. |
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Term
| Where did the investigating team think they should start with the investigation? |
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Definition
| If the furniture was defective, then someone had to generate cash to bribe somebody else to accept the defective furniture. They started with a Cash Flow statement. |
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Term
| How did Kurnans think he could stop the investigation? |
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Definition
| The took the investigators to a room with 30 years of financial records where 2 other GSA investigations had ended without incident. |
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Term
| What did the team go through first? |
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Definition
| They consentrated on the company checks, which would be at the heart of a cash flow statement. |
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Term
| What did the team go through first? |
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Definition
| They consentrated on the company checks, which would be at the heart of a cash flow statement. |
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Term
| What did they find in the checks of the Art Metal furniture company. |
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Definition
| They founded checks made out to an I. Spiegal,Spiegal Trucking. |
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Term
| Why were the checks questionable? |
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Definition
| The check were folded into 3's, cashed, not deposited. |
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Term
| Why did the investigation prove disappointing? |
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Definition
| Interagency problems between the subcommitte and the Justice Department played a major role in a failed plea bargain with a former GSA official which ended the investigation. |
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Term
| What happened to the GSA agency and the Art Metal furniture Co.? |
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Definition
| The GSA was reduced in size and power. The GSA's role as a federal government's chief purchasing agent has been greatly diminished. Art Metal went bankrupt. |
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Term
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Definition
| The fraud tree, represents the 4 corruption schemes,bribery, conflicts on interest, economic extortion,illegal gratuties. |
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Term
| ACFE's Survey Statistics: Frequency of the 3 major fraud categories? |
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Definition
Fraudulent Financial Statements 10.6 %
Corruption 30.8%
Asset Misappropriations 91.5 % |
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Term
| Median Loss of 3 Major Fraud Categories |
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Definition
Fraudulent Financial Statement 2,000,000
Coruption $538,000
Asset Misappropriations $150,000 |
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Term
| 2006 National Fraud Survey: Frequency of Corruption Schemes by type |
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Definition
Conflicts of Interest 61.6 %
Bribery 42.7%
Gratuties 29.8%
Extortion 16.9% |
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Term
| What does the term; "Offical Act"mean? |
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Definition
| Means that traditional bribery stautes proscribe only payments made to influence the decisions of government agents or employees. |
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Term
| Why is bribery similar to illegal gratuties, economic extortion? |
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Definition
| They all involve an illicit payment from one party to another, either to influence a decision or as a reward for a decision already made. |
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Term
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Definition
| A process by which several bidders conspire to split contracts, thereby ensuring that each gets a certain amount of work |
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Term
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Definition
| A process by which an employee assits a vendor to fraudulenty win a contract through the competitive bidding process. |
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Term
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Definition
| A fraudulent scheme in which a large project is split into several component projects so that each sectional contract falls below the mandatory bidding level,thereby avoiding the competitive bidding process. |
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Term
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Definition
| The offering, giving, receiving, or soliciting of something of value for the purpose of influencing an offical act, or a financial transaction. |
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Term
| What is Business diversions? |
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Definition
A scheme that typically involves a favor done for a friendly client. Business diversions can include:
1. Employee starts own business, while still employeed by victim.
2. Steers existing or potential clients away from the victims towards the employees new company. |
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Term
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Definition
| A secret agreement between two or more people for a fraudulent, illegal, or deceitful purpose, such as overcoming the internal controls of their employer. |
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Term
| What is Commercial Bribery? |
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Definition
| The offering, giving, receiving, or solicaiting of something of value for the purpose of influencing a business decision without the knowledge or consent of the principal |
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Term
| What is Conflict of Interest? |
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Definition
| A situation where an employee, manager, or executive has an undisclosed economic or personal interest in a transcation that adversely, affects the company as a result. |
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Term
| What is Economic Extortion? |
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Definition
| The obtainting of property from another with the other party's "consent" having been induced by wrongful use of actual or threatened force or fear. |
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Term
| What are Illegal Gratuities? |
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Definition
| The offering, giving, receiving or soliciting of something of value for, or because of an official act. |
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Term
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Definition
| Schemes in which a vendor pays back a portion of the purchase price to an employee of the buyer in order to influnce the buyer's decision. |
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Term
| What is Need Recognition Scheme? |
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Definition
| A pre-solicitation-phase bid-rigging conspriacy between the buyer receives something of value to convince his company that they have a "need" for a particular product or service. |
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