Construction Company Owners Pleaded Guilty to Defrauding Federal Program Intended for Service-Disabled Veteran-Owned Small Businesses

Two Texas construction company owners have pleaded guilty in a long-running scheme to defraud the United States.

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  • Readout of The Department of Justice’s Efforts to Combat Hate Crimes Against Asian American and Pacific Island Communities
    In Crime News
    The Department of Justice today held a listening session with more than a dozen Asian American and Pacific Islander (AAPI) community groups as part of its continuing efforts to deter hate crimes and other unlawful acts against the AAPI community.
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  • USAJOBS Website: OPM Has Taken Actions to Assess and Enhance the User Experience
    In U.S GAO News
    The Office of Personnel Management (OPM) uses a variety of sources to assess the user experience with USAJOBS, the central website for posting federal job openings. GAO found that OPM's assessments generally track key measures in accordance with selected government-wide guidance. Specifically, OPM collects data on most of the website performance measures recommended by selected guidance from Digital.gov, including the number of times pages were viewed, the percentage of users who use the USAJOBS search box, and overall customer experience. Additionally, consistent with guidance from the Office of Management and Budget (OMB), OPM surveys USAJOBS users about their experiences with the site. OPM also assesses user experience through usability testing, focus groups, and analysis of data on questions submitted to the USAJOBS help desk. Through these assessments, OPM found variations in user experience across the job search and application process, including variations in how people find job announcements and how long it takes them to complete job applications. Since the agency's redesign of USAJOBS in 2016, OPM has taken a number of actions in an effort to address feedback from these assessments and improve the USAJOBS user experience. For example, in 2017, OPM created a set of categories, called Hiring Paths, that describe who is eligible to apply for specific federal jobs and guide job seekers to positions for which they are eligible. Other OPM actions taken from 2016 to 2020 include implementing a new process for logging in to the system to improve website security; updating job search filters and adding a keyword autocomplete function, which suggests search terms as a job seeker types in the search box; revising its job announcement template for hiring agencies to help eliminate duplicative language, increase clarity, and avoid jargon; adding guidance to help job seekers complete federal applications and understand federal hiring authorities; and highlighting jobs related to COVID-19 response. OPM continues to update and refine these efforts. OPM also expects to take a number of additional actions intended to help enhance the USAJOBS website. For example, according to OPM officials, in early fiscal year 2021 they expect to add a “job status” indicator for each job announcement posted on USAJOBS. The job status indicator would provide information such as the number of applicants and when the job has been filled. According to OPM, this would improve transparency and accountability and also provide applicants with updates at each stage of the hiring process. GAO provided a draft of this report to OPM for review and comment. OPM stated that it did not have comments. The USAJOBS website, which is managed by OPM, is the entry point to the federal hiring process for most agencies. It facilitates hiring of new employees as well as the movement of talent across government through merit-based promotions and transfers. OPM uses USAJOBS to help achieve the agency's mission to recruit and retain a world-class government workforce. OPM is responsible for ensuring the usability of USAJOBS and collecting feedback on the user experience. Hiring agencies are responsible for the content of job opportunity announcements. Report language accompanying the Financial Services and General Government Appropriations Bill, 2020, and the Consolidated Appropriations Act of 2020 included provisions for GAO to review the user experience on USAJOBS. This report examines (1) the extent to which OPM assesses the user experience with USAJOBS and the results of OPM's assessments; and (2) actions OPM has taken to improve the user experience with USAJOBS. GAO reviewed OPM data and documentation, interviewed OPM officials, and compared OPM's assessments of user experience to OMB guidance for federal service providers and selected guidance from Digital.gov on performance measures for federal websites. For more information, contact Michelle B. Rosenberg at (202) 512-6806 or rosenbergm@gao.gov.
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  • Department of State Offers Reward Increase for Information to Bring Transnational Criminal to Justice
    In Crime Control and Security News
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  • State Department Terrorist Designation of Saraya al-Mukhtar
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  • Financial Audit: Office of Financial Stability’s (Troubled Asset Relief Program) FY 2020 and FY 2019 Financial Statements
    In U.S GAO News
    GAO found (1) the Office of Financial Stability's (OFS) financial statements for the Troubled Asset Relief Program (TARP) as of and for the fiscal years ended September 30, 2020, and 2019, are presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles; (2) OFS maintained, in all material respects, effective internal control over financial reporting for TARP as of September 30, 2020; and (3) no reportable noncompliance for fiscal year 2020 with provisions of applicable laws, regulations, contracts, and grant agreements GAO tested. In commenting on a draft of this report, OFS stated that it is proud to receive an unmodified opinion on its financial statements and its internal control over financial reporting. OFS also stated that it is committed to maintaining the high standards and transparency reflected in these audit results. The Emergency Economic Stabilization Act of 2008 (EESA) that authorized TARP on October 3, 2008, includes a provision for TARP, which is implemented by OFS, to annually prepare and submit to Congress and the public audited fiscal year financial statements that are prepared in accordance with U.S. generally accepted accounting principles. EESA further states that GAO shall audit TARP's financial statements annually. For more information, contact Cheryl E. Clark at (202) 512-3406 or clarkce@gao.gov.
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  • Indiana Man Charged with Hate Crime for Making Racially-Motivated Threats Towards Black Neighbor, and With Unlawful Possession of Firearms
    In Crime News
    The Justice Department announced today that Shepherd Hoehn, 50, has been charged by criminal complaint in federal district court with one count of violating 42 U.S.C. § 3631 for making threats to intimidate and interfere with his African-American neighbor because of the neighbor’s race and because of his use and enjoyment of his property, as well as two counts of violating 18 U.S.C. § 922(g) for unlawfully possessing firearms.
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  • Department Press Briefing – May 14, 2021
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  • G7 Statement on Hong Kong Electoral Changes
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  • Justice Department Settles with Transportation and Logistics Company to Resolve Immigration-Related Discrimination Claims
    In Crime News
    The Justice Department announced today that it reached a settlement with IAS Logistics DFW LLC, d/b/a Pinnacle Logistics (Pinnacle Logistics), a transportation and logistics company headquartered in Fort Worth, Texas.  
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  • Secretary Pompeo’s Meeting with Japanese Foreign Minister Motegi
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  • Principal Deputy Assistant Attorney General Jonathan Brightbill Delivers Remarks at the 2020 Annual Pennsylvania Chamber Environmental Virtual Conference
    In Crime News
    I am happy to be back home in Pennsylvania — in a sense — and have the opportunity to speak with the Pennsylvania Chamber of Business and Industry. Since this organization’s founding in 1916, this Chamber has advocated for job creation and greater prosperity for all Pennsylvanians. It represents almost 50 percent of Pennsylvania’s private workforce with a membership of 10,000 businesses ranging from sole proprietors to Fortune 100 companies.
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  • Office for Victims of Crime Awards Nearly $4 Million to Support Sexual Assault Nurse Examiner Programs
    In Crime News
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  • Remarks at the United States’ Third Universal Periodic Review
    In Human Health, Resources and Services
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  • VA COVID-19 Procurements: Pandemic Underscores Urgent Need to Modernize Supply Chain
    In U.S GAO News
    What GAO Found Like most medical institutions nationwide, the Department of Veterans Affairs (VA) faced difficulties obtaining medical supplies, including personal protective equipment for its medical workforce, particularly in the early stages of the COVID-19 pandemic. Long-standing problems with its antiquated inventory management system exacerbated VA's challenges. GAO found VA obligated over $4 billion for COVID-19-related products, such as ventilators, and services, such as information technology to support VA's telework environment, as of May 2021. GAO also found that some vendors were unable to deliver personal protective equipment, which resulted in VA terminating some contracts, particularly early in the pandemic. VA also took additional steps to screen vendors. VA has several initiatives underway to modernize its supply chain and prepare for future public health emergencies, but each faces delays and is in early stages (see figure). For example: Inventory management. VA intended to replace its system with the Defense Medical Logistics Standard Support (DMLSS), with initial implementation in October 2019, and enterprise-wide implementation by 2027. Prior to the pandemic, however, this schedule was at significant risk. VA hopes to accelerate full implementation to 2025, and has received COVID-19 supplemental funds to help, but it is too soon to tell if this will occur. Regional Readiness Centers. VA planned to establish four centers—as central sources of critical medical supplies—by December 2020. As of March 2021, VA has not completed a concept of operations or implementation plan for the project. VA faces an additional year delay in achieving full operational capability, which is now expected in 2023. According to VA officials, the pandemic, among other things, contributed to delays. Warstopper program. VA seeks participation in this Defense Logistics Agency program, which would allow VA emergency access to critical supplies. Legislation recently was introduced to require VA participation. However, as GAO reported in March 2021, several questions remain, such as the range of products the program will cover, the amount of funding needed, and the way the program links to Regional Readiness Centers. Department of Veterans Affairs' Selected Ongoing and New Supply Chain Initiatives, Fiscal Years 2021 through 2028 Why GAO Did This Study In March 2020 and March 2021, Congress appropriated $19.6 billion and $17 billion in supplemental funds, respectively, for VA's COVID-19 response effort. VA also authorized use of emergency flexibilities and automated aspects of its inventory system. In accordance with Congress's direction in the CARES Act to monitor the exercise of authorities and use of funds provided to prepare for, respond to, and recover from the pandemic, relevant committees requested our sustained focus on VA. GAO was asked to assess VA's acquisition management during its COVID-19 pandemic response. This report examines VA's efforts to obtain and track COVID-19-related products and services amid its ongoing struggle to improve its inventory and supply chain management. GAO reviewed federal procurement data, analyzed selected VA contract documents, reviewed selected interagency agreements, assessed VA documents on modernization and other initiatives, and interviewed VA officials and staff.
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  • Justice Department Seeks to Shut Down Illinois Tax Return Preparer
    In Crime News
    The United States has filed a complaint in the U.S. District Court for the Northern District of Illinois seeking to bar a Rockford area tax return preparer from preparing federal income tax returns for others.
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  • Secretary Blinken’s Meeting with Japanese Foreign Minister Motegi and Republic of Korea Foreign Minister Chung
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  • Federal Budget: A Few Agencies and Program-Specific Factors Explain Most Unused Funds
    In U.S GAO News
    What GAO Found About 1.6 percent of the total available budget authority government-wide was cancelled from fiscal year 2009 to fiscal year 2019, averaging $23.9 billion per year. The variations in cancelled appropriations from year to year can be explained largely by trends in four departments. Together they represent 86 percent of the total government-wide cancelled appropriations, but their rate of cancellations were within a few percentage points of the government-wide rate. Four Agencies Represent the Majority of Total Cancellations from FY2009–FY2019 Cancelled appropriations for the six case study accounts GAO reviewed largely resulted from program-specific factors: Actual program needs were less than estimated. For example, actual versus projected troop levels and warfront movements can contribute to cancelled appropriations at the Department of Defense (DOD). Some program funds are only for specific purposes. For example, Department of Health and Human Services (HHS), Administration for Children and Families officials reported that some states declined funding for a teen sex and pregnancy prevention program, and the agency did not have the authority to redirect those funds for other purposes. Some programs' costs are more unpredictable than others. Contract and acquisition costs can be unpredictable . When final costs are less than originally estimated, agencies may have to cancel the difference. In contrast, agencies with a higher proportion of personnel expenses, which are relatively predictable, can more easily avoid cancelled appropriations. All of GAO's case study agencies have procedures in place to help limit discretionary cancelled appropriations. For example, the Army established a program that helps reduce cancelled appropriations by providing management with metrics and tools to help prevent them. Why GAO Did This Study Laws limit the time that agencies have available to use fixed-term appropriations for obligations and expenditures. However, agencies do not always obligate and outlay these funds in time, which ultimately results in cancelled appropriations. Efforts to limit the amount of cancelled appropriations result in more accurate budget estimation and fiscal projections, a more efficient appropriations process, and better service to the public. The National Defense Authorization Act for Fiscal Year 2020 includes a provision for GAO to review the status of cancelled appropriations. This report addresses (1) the extent of appropriations that were cancelled in fiscal years 2009 through 2019 and how the rate of cancelled appropriations and other characteristics differ across agencies, (2) factors that contribute to the level of cancelled appropriations in selected accounts at agencies, and (3) efforts selected agencies make to prevent the cancellation of funds. To provide government-wide trends, GAO analyzed Department of the Treasury and Office of Management and Budget data. GAO also analyzed related documents from six case study accounts at DOD, HHS, and the U.S. Department of Agriculture; and interviewed officials at these agencies. The selected accounts included the three with the most cancelled appropriations government-wide and three additional accounts to represent the major categories of federal spending: personnel, acquisitions, grants, and contracts. For more information, contact Jeff Arkin at (202) 512-6806 or arkinj@gao.gov.
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  • Revocation of the Terrorist Designations of Ansarallah
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  • Defense Science and Technology: Opportunities to Better Integrate Industry Independent Research and Development into DOD Planning
    In U.S GAO News
    Why This Matters Research and development (R&D) projects in high-tech areas like cybersecurity and biotechnology can help the U.S. military reassert its technological edge. Contractors decide what independent R&D projects to conduct and the Department of Defense (DOD) reimburses them about $4 billion-$5 billion annually. More information about those projects could help DOD guide its own R&D investments. Key Takeaways DOD does not know how contractors’ independent R&D projects fit into the department’s technology goals. As a result, DOD risks making decisions about its multi-billion dollar science and tech investments that could duplicate work or miss opportunities to fill in gaps that the contributions of private industry do not cover. DOD has a database of independent R&D projects, but it is not very useful for informing investment decisions because DOD does not obtain information in these and other areas: Priority. Contractors do not identify whether a project aligns with any of 10 modernization priorities. The department uses those priorities to make decisions about R&D investments. Cost. The database does not capture a project’s complete cost, which could help DOD understand cost implications of future related work. Innovation. The database does not include whether a project is a lower-risk, incremental development or a more innovative “disruptive” technology. Disruptive projects carry higher risk of failure but offer possible significant rewards in the long term. While DOD is not required to review independent R&D projects to understand how they support DOD’s priorities, GAO analysis showed 38 percent of industry projects aligned with DOD’s priorities. To help DOD better understand the scope and nature of independent projects, we recommend DOD determine whether to require additional information in the project database and review projects annually as part of its strategic planning process. DOD agreed with both recommendations. How GAO Did This Study We categorized a sample of completed projects from 2014–2018 by innovation type and analyzed projects completed in 2018 for alignment with DOD's modernization priorities. We also reviewed DOD policies on independent R&D and interviewed representatives from 10 defense contractors. For more information, contact Timothy J. DiNapoli at (202) 512-4841 or dinapolit@gao.gov.
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  • Rural Hospital Closures: Affected Residents Had Reduced Access to Health Care Services
    In U.S GAO News
    GAO found that when rural hospitals closed, residents living in the closed hospitals' service areas would have to travel substantially farther to access certain health care services. Specifically, for residents living in these service areas, GAO's analysis shows that the median distance to access some of the more common health care services increased about 20 miles from 2012 to 2018. For example, the median distance to access general inpatient services was 3.4 miles in 2012, compared to 23.9 miles in 2018—an increase of 20.5 miles. For some of the less common services that were offered by a few of the hospitals that closed, this median distance increased much more. For example, among residents in the service areas of the 11 closed hospitals that offered treatment services for alcohol or drug abuse, the median distance was 5.5 miles in 2012, compared to 44.6 miles in 2018—an increase of 39.1 miles to access these services (see figure). Median Distance in Miles from Service Areas with Rural Hospital Closures to the Nearest Open Hospital that Offered Certain Health Care Services, 2012 and 2018 Notes: GAO focused its analysis on the health care services offered in 2012 by the 64 rural hospitals that closed during the years 2013 through 2017 and for which data were available. For example, in 2012, 64 closed hospitals offered general inpatient services, 62 offered emergency department services, 11 offered treatment services for alcohol or drug abuse, and 11 offered services in a coronary care unit. To examine distance, GAO calculated “crow-fly miles” (the distance measured in a straight line) from the geographic center of each closed rural hospital's service area to the geographic center of the ZIP Code with the nearest open rural or urban hospital that offered a given service. GAO also found that the availability of health care providers in counties with rural hospital closures generally was lower and declined more over time, compared to those without closures. Specifically, counties with closures generally had fewer health care professionals per 100,000 residents in 2012 than did counties without closures. The disparities in the availability of health care professionals in these counties grew from 2012 to 2017. For example, over this time period, the availability of physicians declined more among counties with closures—dropping from a median of 71.2 to 59.7 per 100,000 residents—compared to counties without closures—which dropped from 87.5 to 86.3 per 100,000 residents. Rural hospitals face many challenges in providing essential access to health care services to rural communities. From January 2013 through February 2020, 101 rural hospitals closed. GAO was asked to examine the effects of rural hospital closures on residents living in the areas of the hospitals that closed. This report examines, among other objectives, how closures affected the distance for residents to access health care services, as well as changes in the availability of health care providers in counties with and without closures. GAO analyzed data from the Department of Health and Human Services (HHS) and the North Carolina Rural Health Research Program (NC RHRP) for rural hospitals (1) that closed and those that were open during the years 2013 through 2017, and (2) for which complete data generally were available at the time of GAO's review. GAO also interviewed HHS and NC RHRP officials and reviewed relevant literature. GAO defined hospitals as rural according to data from the Federal Office of Rural Health Policy. GAO defined hospital closure as a cessation of inpatient services, the same definition used by NC RHRP. GAO defined service areas with closures as the collection of ZIP Codes that were served by closed rural hospitals and service areas without closures as the collection of ZIP Codes served only by rural hospitals that were open. GAO provided a draft of this report to HHS for comment. The Department provided technical comments, which GAO incorporated as appropriate. For more information, contact James Cosgrove at (202) 512-7114 or cosgrovej@gao.gov.
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  • On the First Anniversary of the Death of Abu Bakr al-Baghdadi 
    In Crime Control and Security News
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  • New Jersey Man Sentenced to Prison for Tax Fraud Conspiracy
    In Crime News
    A New Jersey man was sentenced to 78 months in prison today for conspiring to defraud the United States, filing false claims, and obstructing the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
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  • Escalation of Violence between Armenia and Azerbaijan
    In Crime Control and Security News
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  • United States Reaches Settlement with Federal Way Public Schools to Resolve Student Complaints of Harassment on the Basis of Religion and National Origin
    In Crime News
    Today the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Western District of Washington announced a settlement agreement with Federal Way Public Schools in Washington to resolve an investigation into allegations of peer-on-peer harassment on the basis of religion and national origin.
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  • U.S.-ROK Alliance – Expanding Bilateral Cooperation for the 21st Century
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  • New York Man Pleads Guilty to Trafficking Exotic African Cats
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  • Remarks As Prepared For Delivery By Katharine T. Sullivan Principal Deputy Assistant Attorney General Office Of Justice Programs At The Announcement Of Sexual Assault Nurse Examiner Grants
    In Crime News
    Good afternoon, everyone. Thank you all for joining us. I’m Katie Sullivan, the Principal Deputy Assistant Attorney General for the Office of Justice Programs in the U.S. Department of Justice. I’m thrilled to be here today with the outstanding U.S. Attorney for the Western District of Pennsylvania, Scott Brady. I’m also very pleased to be joined by Dr. Mary Ellen Glasgow, Dean of the Duquesne School of Nursing, and Dr. Alison Colbert, Associate Professor in the Duquesne School of Nursing. You’ll hear from each of them in just a moment. I also want to introduce my wonderful colleague, Jessica Hart, the Director of the Office for Victims of Crime, which is part of my agency.
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  • Seven North Carolina Tax Preparers Plead Guilty to Conspiring to Defraud the IRS
    In Crime News
    Seven Charlotte, North Carolina tax return preparers pleaded guilty to conspiracy to defraud the United States by preparing and filing false tax returns, announced Principal Deputy Assistant General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina, and Special Agent in Charge Matthew D. Line of the Internal Revenue Service-Criminal Investigation (IRS-CI).
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  • Department Press Briefing – May 4, 2021
    In Crime Control and Security News
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  • Robert Katzmann, Judge and Civics Advocate, Dies at 68
    In U.S Courts
    Robert A. Katzmann, a former chief judge of the Second Circuit U.S. Court of Appeals and a tireless, impassioned advocate of civics education, died June 9. He was 68.
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  • Deputy Assistant Attorney General Michael Murray Delivers Remarks at University of Michigan Law School
    In Crime News
    I am here today to speak about the intersection of the antitrust laws and the financial sector of our economy.  The financial markets and the financial services industry are currently undergoing massive transformation.  New technologies are disrupting how we do business, how we transact with each other, and how the economy functions.  Much of this change benefits consumers with innovative, low cost, and convenient products and services.  But with rapid change also comes the opportunity for anticompetitive conduct and its attendant harm.  Incumbents may predict and resist their demise and seek to slow innovation and the growth of rivals, and market participants who should compete against each other can agree to act jointly to the detriment of the American consumer. 
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  • Justice Department Settles with Indiana School District to Resolve Disability Discrimination Investigation into School Seclusion and Restraint Practices
    In Crime News
    The Justice Department today announced a settlement agreement with the North Gibson School Corporation in Princeton, Indiana, to address and prevent the discriminatory secluding and restraining of students with disabilities.
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    In Crime News
    A Michigan man pleaded guilty today to filing a false individual income tax return.
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  • Appellate Court Agrees with Government that Supervised Injection Sites are Illegal under Federal Law; Reverses District Court Ruling
    In Crime News
    In a precedential opinion, the Third Circuit ruled yesterday that it is a federal crime to open a supervised injection site or “consumption room” for illegal drug use.  Local nonprofit Safehouse planned to open the nation’s first such consumption room in the City of Philadelphia, where individuals would be invited to inject heroin and use other drugs under supervision.  But the Third Circuit ruled that doing so “will break the law” because Safehouse knows and intends that visitors to its consumption room will have a significant purpose of using illegal drugs.  In agreeing with the government’s interpretation of the Controlled Substances Act, the Court explained that, “[t]hough the opioid crisis may call for innovative solutions, local innovations may not break federal law.”
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  • Justice Department Resolves ADA Complaint with Maine Department of Health and Human Services
    In Crime News
    The Justice Department today reached an agreement with the Maine Department of Health and Human Services (DHHS) to resolve alleged violations of the Americans with Disabilities Act (ADA).
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  • Information Technology: DHS Directives Have Strengthened Federal Cybersecurity, but Improvements Are Needed
    In U.S GAO News
    What GAO Found The Department of Homeland Security (DHS) has established a five-step process for developing and overseeing the implementation of binding operational directives, as authorized by the Federal Information Security Modernization Act of 2014 (FISMA). The process includes DHS coordinating with stakeholders early in the directives' development process and validating agencies' actions on the directives. However, in implementing the process, DHS did not coordinate with stakeholders early in the process and did not consistently validate agencies' self-reported actions. In addition to being a required step in the directives process, FISMA requires DHS to coordinate with the National Institute of Standards and Technology (NIST) to ensure that the directives do not conflict with existing NIST guidance for federal agencies. However, NIST officials told GAO that DHS often did not reach out to NIST on directives until 1 to 2 weeks before the directives were to be issued, and then did not always incorporate the NIST technical comments. More recently, DHS and NIST have started regular coordination meetings to discuss directive-related issues earlier in the process. Regarding validation of agency actions, DHS has done so for selected directives, but not for others. DHS is not well-positioned to validate all directives because it lacks a risk-based approach as well as a strategy to check selected agency-reported actions to validate their completion. Directives' implementation often has been effective in strengthening federal cybersecurity. For example, a 2015 directive on critical vulnerability mitigation required agencies to address critical vulnerabilities discovered by DHS cyber scans of agencies' internet-accessible systems within 30 days. This was a new requirement for federal agencies. While agencies did not always meet the 30-day requirement, their mitigations were validated by DHS and reached 87 percent compliance by 2017 (see fig. 1). DHS officials attributed the recent decline in percentage completion to a 35-day partial government shutdown in late 2018/early 2019. Nevertheless, for the 4-year period shown in the figure below, agencies mitigated within 30 days about 2,500 of the 3,600 vulnerabilities identified. Figure 1: Critical Vulnerabilities Mitigated within 30 days, May 21, 2015 through May 20, 2019 Agencies also made reported improvements in securing or replacing vulnerable network infrastructure devices. Specifically, a 2016 directive on the Threat to Network Infrastructure Devices addressed, among other things, several urgent vulnerabilities in the targeting of firewalls across federal networks and provided technical mitigation solutions. As shown in figure 2, in response to the directive, agencies reported progress in mitigating risks to more than 11,000 devices as of October 2018. Figure 2: Federal Civilian Agency Vulnerable Network Infrastructure Devices That Had Not Been Mitigated, September 2016 through January 2019 Another key DHS directive is Securing High Value Assets, an initiative to protect the government's most critical information and system assets. According to this directive, DHS is to lead in-depth assessments of federal agencies' most essential identified high value assets. However, an important performance metric for addressing vulnerabilities identified by these assessments does not account for agencies submitting remediation plans in cases where weaknesses cannot be fully addressed within 30 days. Further, DHS only completed about half of the required assessments for the most recent 2 years (61 of 142 for fiscal year 2018, and 73 of 142 required assessments for fiscal year 2019 (see fig. 3)). In addition, DHS does not plan to finalize guidance to agencies and third parties, such as contractors or agency independent assessors, for conducting reviews of additional high value assets that are considered significant, but are not included in DHS's current review, until the end of fiscal year 2020. Given these shortcomings, DHS is now reassessing key aspects of the program. However, it does not have a schedule or plan for completing this reassessment, or to address outstanding issues on completing required assessments, identifying needed resources, and finalizing guidance to agencies and third parties. Figure 3: Department of Homeland Security Assessments of Agency High Value Assets, Fiscal Years (FY) 2018 through 2019 Why GAO Did This Study DHS plays a key role in federal cybersecurity. FISMA authorized DHS, in consultation with the Office of Management and Budget, to develop and oversee the implementation of compulsory directives—referred to as binding operational directives—covering executive branch civilian agencies. These directives require agencies to safeguard federal information and information systems from a known or reasonably suspected information security threat, vulnerability, or risk. Since 2015, DHS has issued eight directives that instructed agencies to, among other things, (1) mitigate critical vulnerabilities discovered by DHS through its scanning of agencies' internet-accessible systems; (2) address urgent vulnerabilities in network infrastructure devices identified by DHS; and (3) better secure the government's highest value and most critical information and system assets. GAO was requested to evaluate DHS's binding operational directives. This report addresses (1) DHS's process for developing and overseeing the implementation of binding operational directives and (2) the effectiveness of the directives, including agencies' implementation of the directive requirements. GAO selected for review the five directives that were in effect as of December 2018, and randomly selected for further in-depth review a sample of 12 agencies from the executive branch civilian agencies to which the directives apply. In addition, GAO reviewed DHS policies and processes related to the directives and assessed them against FISMA and Office of Management and Budget requirements; administered a data collection instrument to selected federal agencies; compared the agencies' responses and supporting documentation to the requirements outlined in the five directives; and collected and analyzed DHS's government-wide scanning data on government-wide implementation of the directives. GAO also interviewed DHS and selected agency officials.
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  • Former Elkhart, Indiana Resident Sentenced to Over Six Years in Prison for Financing of Terrorism
    In Crime News
    Samantha Marie Elhassani, aka Samantha Sally, 35, formerly of Elkhart, Indiana, was sentenced by U.S. District Court Judge Philip P. Simon to 78 months in prison and three years of supervised release after pleading guilty to Financing Terrorism, announced Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the Northern District of Indiana Thomas L. Kirsch II, FBI Assistant Director of the Counterterrorism Division Jill Sanborn, and FBI Special Agent in Charge of the Indianapolis field office Paul Keenan.
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  • Additional Civilian Assistance to Afghanistan
    In Crime Control and Security News
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  • Houthi Attacks on Saudi Arabia
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  • Justice Department And Indian Authorities Announce Enforcement Actions Against Technical-Support Fraud Scheme Targeting Seniors
    In Crime News
    A federal court has ordered an individual and 5 companies to stop engaging in a technical-support fraud scheme that is alleged to have defrauded hundreds of elderly and vulnerable U.S. victims, the Department of Justice announced today. 
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  • The Nation’s Fiscal Health: Information on the Spending and Revenue Implications of Potential Debt Targets
    In U.S GAO News
    The COVID-19 pandemic has necessitated major federal spending to respond to the national public health emergency and resulting economic turmoil. This response and the severe economic contraction from the pandemic have led to increased federal debt. Once the COVID-19 pandemic abates and the economy has substantially recovered, Congress and the administration will need to address the federal government’s fiscal challenges. To help change the long-term fiscal path, in September 2020 GAO recommended that Congress consider establishing a long-term fiscal plan that includes fiscal rules and targets, such as a debt-to-gross domestic product (GDP) target. In this report, GAO analyzed the changes in spending and revenue needed to reach six potential debt-to-GDP targets at the end of a 30-year period (2020-2049). To reach any of the targets, policymakers will need to cut program spending, increase revenue, or, most likely, a combination of both (see table). Illustrative Examples of Changes Needed to Achieve Debt-to-GDP Targets Debt target, percent of GDP (end of 30 years) Spending and revenue: total change over 30 years Program spending alone: Immediate and permanent decrease needed in annual projected program spendinga Revenue alone: Immediate and permanent increase needed in annual projected revenue Percent Dollars, trillions Percent Percent 140 25.4 13.8 18.5 120 31.2 16.9 22.8 100 37 20 27 80 42.8 23.1 31.2 60 48.5 26.3 35.4 0 (paying off all debt) 65.9 35.7 48.1 Source: GAO simulation. | GAO-21-211. Note: The simulation used for this analysis generally reflect historical trends, such as the extension of tax provisions scheduled to expire. It does not account for potential macroeconomic effects of fiscal policy changes over time. aProgram spending consists of all spending except interest payments on debt held by the public. When considering the spending and revenue changes needed to achieve various debt-to-GDP targets, policymakers may also consider how changes in assumptions about key variables—such as discretionary spending, revenue, and GDP—affect these fiscal outcomes. For example, if GDP growth is greater than expected, policymakers may have to make smaller spending cuts or revenue increases to reach a selected debt-to-GDP target than those that would be needed based on GAO’s standard assumptions. GAO created an interactive web tool accompanying this report to allow users to enter different assumptions for each of these variables. This tool illustrates how these changes would affect the different debt-to-GDP targets over time, as well as the changes in spending and revenue needed to achieve various targets. This tool can be found at https://www.gao.gov/products/GAO-21-211. Even before the fiscal and economic effects resulting from COVID-19, an imbalance between federal revenue and spending that is built into current law and policy was contributing to the growing federal debt. The Congressional Budget Office projects that by 2023 federal debt held by the public will reach 107 percent of GDP, its highest point in U.S. history. This situation—in which federal debt grows faster than GDP—means that our nation is on an unsustainable fiscal path. GAO was asked to review issues related to fiscal rules and targets and the federal fiscal condition. In response to this request, in September 2020, GAO issued a report (GAO-20-561) on key considerations for the design, implementation, and enforcement of fiscal rules and targets. This report supplements that work and describes how changes in assumptions of future spending and revenue affect the federal government’s projected fiscal condition. GAO updated its long-term simulations of federal revenue and spending to (1) analyze six potential debt-to-GDP targets and (2) measure the fiscal gap—the policy change needed to reach a given debt-to-GDP fiscal target from the start to the end of 30-years. GAO also analyzed how changes in key variables affected the debt-to-GDP targets and the fiscal gap. For more information, contact Jeff Arkin at (202) 512-6806 or arkinj@gao.gov.
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  • Professional Standards Update No. 80
    In U.S GAO News
    To alert the audit community to changes in professional standards, we periodically issue Professional Standards Updates (PSU). The purpose of these updates is to highlight the effective dates and issuance of recent standards and guidance related to engagements conducted in accordance with Government Auditing Standards. PSUs contain summary information only, and those affected by a change should refer to the respective standard or guidance for details. This PSU has three sections.
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    The Justice Department today sent a letter to the San Francisco mayor explaining that the city’s policy of only allowing a single worshiper in places of worship regardless of their size, while allowing multiple patrons in other indoor settings including gyms, tattoo parlors, hair salons, massage studios, and daycares, is contrary to the Constitution and the nation’s best tradition of religious freedom.
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  • Anesthesia Services: Differences between Private and Medicare Payments Likely Due to Providers’ Strong Negotiating Position
    In U.S GAO News
    Literature GAO reviewed indicated that private insurance payments for anesthesia services on average were more than 3-1/2 times those of Medicare payments. This payment difference increased from what GAO reported in 2007—average private insurance payments for certain anesthesia services in 2004 were about 3 times those of Medicare. While Medicare rates for anesthesia services are set by the Centers for Medicare & Medicaid Services (CMS), private insurance rates are set through negotiations between providers and private insurers. GAO identified three recent studies with analyses of private insurance and Medicare payments for anesthesia services: Researchers from Yale University calculated that private insurance payments were 3.67 times Medicare payments, on average, for services provided by anesthesiologists for one large private insurer in 2015 operating across all 50 states and the District of Columbia. The Health Care Cost Institute calculated that in 2017 private insurance payments ranged from 2 to 7 times Medicare payments, on average, across six common services provided by anesthesiologists in 33 states. Wide state-to-state variation within specific services was reported. The American Society of Anesthesiologists reported that private insurance payments were 3.46 times Medicare payments, on average, based on a survey of its members in 2019. According to studies GAO reviewed and stakeholders GAO interviewed, market factors likely enhanced anesthesia providers' negotiating position and allowed them to secure higher private payments. For example, several studies and stakeholders cited market concentration as a key factor that increased private payments for anesthesia services. In a market with high provider concentration—or relatively few providers in a given market—there is little competition between providers, enabling the providers within that market to negotiate for higher payments from private insurers. Studies also indicated that specialists, including anesthesia providers, could negotiate higher in-network payment rates because they were able to leave an insurer's network with little risk of losing patients or revenue. In addition, when anesthesia providers are not a part of a private insurer's network, they are typically able to bill for a higher amount than the insurer would pay for an in-network provider, known as out-of-network billing. This dynamic decreases providers' incentives to participate in insurer networks because it creates an attractive alternative to network participation. GAO's interviews with stakeholders, literature review, and review of agency data generally did not indicate that the supply of anesthesia providers was insufficient for Medicare beneficiaries. CMS data indicate that the number of active anesthesia providers per 100,000 Medicare beneficiaries increased from 2010 through 2018 and that a very small number of anesthesia providers opted out of the Medicare program. Furthermore, researchers and stakeholders GAO interviewed were not aware of any issues with access to anesthesia services for Medicare beneficiaries, including those in traditionally underserved rural areas. In 2018, Medicare paid over $2 billion for anesthesia services, such as general anesthesia administered to beneficiaries undergoing surgical or other invasive procedures. The joint explanatory statement for the Further Consolidated Appropriations Act, 2020 included a provision for GAO to update its 2007 report and examine how differences in payment rates for anesthesia services have changed since that time. In 2007, GAO reported that Medicare payments in 2004 for certain anesthesia services provided by anesthesiologists were on average 67 percent lower than private insurance payments in certain geographic areas—indicating that private payments were about 3 times more than Medicare payments at that time. This report describes what is known about (1) recent trends in differences between Medicare and private payments for anesthesia services, and (2) the sufficiency of the supply of anesthesia providers for Medicare beneficiaries. GAO reviewed literature and available published data on payment differences for anesthesia services, published in the United States since 2010. GAO also reviewed data from CMS on the number of anesthesia providers from 2010, 2018, and 2020. GAO also interviewed a nongeneralizable selection of three research groups, two beneficiary advocacy groups, and five stakeholder groups, including those representing anesthesiologists, nurse anesthetists, and hospitals, to obtain their perspectives on these issues. The Department of Health and Human Services provided no comments on this report. For more information, contact Jessica Farb at (202) 512-7114 or farbj@gao.gov.
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  • Weapon System Sustainment: Aircraft Mission Capable Rates Generally Did Not Meet Goals and Cost of Sustaining Selected Weapon Systems Varied Widely
    In U.S GAO News
    Mission Capable Rates for Selected Department of Defense Aircraft GAO examined 46 types of aircraft and found that only three met their annual mission capable goals in a majority of the years for fiscal years 2011 through 2019 and 24 did not meet their annual mission capable goals in any fiscal year as shown below. The mission capable rate—the percentage of total time when the aircraft can fly and perform at least one mission—is used to assess the health and readiness of an aircraft fleet. Number of Times Selected Aircraft Met Their Annual Mission Capable Goal, Fiscal years 2011 through 2019 aThe military departments did not provide mission capable goals for all nine years for these aircraft. Aggregating the trends at the military service level, the average annual mission capable rate for the selected Air Force, Navy, and Marine Corps aircraft decreased since fiscal year 2011, while the average annual mission capable rate for the selected Army aircraft slightly increased. While the average mission capable rate for the F-35 Lightning II Joint Strike Fighter showed an increase from fiscal year 2012 to 2019, it trended downward from fiscal year 2015 through fiscal year 2018 before improving slightly in fiscal year 2019. For fiscal year 2019, GAO found only three of the 46 types of aircraft examined met the service-established mission capable goal. Furthermore, for fiscal year 2019: six aircraft were 5 percentage points or fewer below the goal; 18 were from 15 to 6 percentage points below the goal; and 19 were more than 15 percentage points below the goal, including 11 that were 25 or more percentage points below the goal. Program officials provided various reasons for the overall decline in mission capable rates, including aging aircraft, maintenance challenges, and supply support issues as shown below. Sustainment Challenges Affecting Some of the Selected Department of Defense Aircraft aA service life extension refers to a modification to extend the service life of an aircraft beyond what was planned. bDiminishing manufacturing sources refers to a loss or impending loss of manufacturers or suppliers of items. cObsolescence refers to a lack of availability of a part due to its lack of usefulness or its no longer being current or available for production. Operating and Support Costs for Selected Department of Defense Aircraft Operating and support (O&S) costs, such as the costs of maintenance and supply support, totaled over $49 billion in fiscal year 2018 for the aircraft GAO reviewed and ranged from a low of $118.03 million for the KC-130T Hercules (Navy) to a high of $4.24 billion for the KC-135 Stratotanker (Air Force). The trends in O&S costs varied by aircraft from fiscal year 2011 to 2018. For example, total O&S costs for the F/A-18E/F Super Hornet (Navy) increased $1.13 billion due in part to extensive maintenance needs. In contrast, the F-15C/D Eagle (Air Force) costs decreased by $490 million due in part to a reduction in the size of the fleet. Maintenance-specific costs for the aircraft types we examined also varied widely. Why This Matters The Department of Defense (DOD) spends tens of billions of dollars annually to sustain its weapon systems in an effort to ensure that these systems are available to simultaneously support today's military operations and maintain the capability to meet future defense requirements. This report provides observations on mission capable rates and costs to operate and sustain 46 fixed- and rotary-wing aircraft in the Departments of the Army, Navy, and Air Force. How GAO Did This Study GAO was asked to report on the condition and costs of sustaining DOD's aircraft. GAO collected and analyzed data on mission capable rates and O&S costs from the Departments of the Army, Navy, and Air Force for fiscal years 2011 through 2019. GAO reviewed documentation and interviewed program office officials to identify reasons for the trends in mission capability rates and O&S costs as well as any challenges in sustaining the aircraft. This is a public version of a sensitive report issued in August 2020. Information on mission capable and aircraft availability rates were deemed to be sensitive and has been omitted from this report. For more information, contact Director Diana Maurer at (202) 512-9627 or maurerd@gao.gov.
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    A federal grand jury in Brooklyn, New York, returned an indictment on June 4, charging a New York City woman with conspiring to defraud the United States and aiding and assisting in the preparation of a false tax return.
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