Yet another corporate fraud example.

[Deleted member 4644]

http://www.washingtonpost.com/wp-dyn/co...rticle/2005/10/22/AR2005102201437.html

Federal auditors say the prime contractor on a $1 billion technology contract to improve the nation's transportation security system overbilled taxpayers for as much as 171,000 hours' worth of labor and overtime by charging up to $131 an hour for employees who were paid less than half that amount.

I think these fvckers should fry. Seriously, it should be a capital crime to defraud the American people of THIS much money. Oh, and the CEO of that company used to be a partner at KPMG... I say fvcking fry those auditors too.

 

[EatSpam]

The "conservatives" here will argue that this is somehow good for America, since rich folks are better than you and I and can do no wrong.

But I'm in agreement with you, fry them or at least send them in PMITA prison, so they can experience first hand what they've done to the American people.

 

[EagleKeeper]

Government requires x people of y capabilites.

You have x/2 people that have y/3 capabilities.

Inflate the capabilites of the people being used on the contracts.

Get the contracts.

Then do not hire the people that have y capabilities.

Charge the contract for the extra time required because of the lack of personel to complete the work.

This is standard procedure by government/defense contractors for the past 40 years.
Many of the PMO directors are aware of this, however, do not have the tools/pull to force the issue.

 

[Whoozyerdaddy]

Originally posted by: LordSegan
http://www.washingtonpost.com/wp-dyn/co...rticle/2005/10/22/AR2005102201437.html

Federal auditors say the prime contractor on a $1 billion technology contract to improve the nation's transportation security system overbilled taxpayers for as much as 171,000 hours' worth of labor and overtime by charging up to $131 an hour for employees who were paid less than half that amount.

I think these fvckers should fry. Seriously, it should be a capital crime to defraud the American people of THIS much money. Oh, and the CEO of that company used to be a partner at KPMG... I say fvcking fry those auditors too.

Not to overlook the whole fraud thing... But it is entirely normal to bill an hourly labor charge that is higher than what the employee is being paid. I charge $60/hr for employees that I pay $12/hr. It's not illegal and it's not fraudulant. If I only billed for my exact employee labor costs I wouldn't make any money.

Unisys of Blue Bell, Pa., inappropriately charged some of the highest rates possible under the contract by labeling lower-level employees as experts in their fields, the auditors found. Unisys said the employees' experience and responsibilities merited the higher rates.

At the same time, the auditors discovered that timesheets were repeatedly adjusted to change job and labor categories long after the work was performed without "adequate explanations," the auditors said.

Now THAT is fraud. If you're going to be outraged, be outraged at the right things.