United Airlines to Pay $49 Million to Resolve Criminal Fraud Charges and Civil Claims

United Airlines Inc. (United), the world’s third largest airline, has agreed to pay over $49 million to resolve criminal charges and civil claims relating to fraud on postal service contracts for transportation of international mail.

More from: February 26, 2021

Hits: 0

News Network

  • Company’s Vice President Pleads Guilty to Negligently Releasing Asbestos
    In Crime News
    A New York man pleaded guilty today to negligently releasing asbestos and thereby exposing victims to an increased risk of death or serious bodily injury.
    [Read More…]
  • Secretary Blinken’s Call with Gary Pruitt, President and CEO of the Associated Press
    In Crime Control and Security News
    Office of the [Read More…]
  • Man Pleads Guilty to Stealing Nude Photos of Dozens of Victims
    In Crime News
    A New York man pleaded guilty Monday to computer fraud and aggravated identity theft related to his hacking of online social media accounts and theft of nude images of dozens of female victims.
    [Read More…]
  • Eleven Defendants Charged with Murder in Indian Country
    In Crime News
    A federal grand jury in the Eastern District of Oklahoma has returned separate indictments charging 11 defendants with murder and other various violent crimes arising out of Indian Country.
    [Read More…]
  • Secretary Blinken’s Call with Portuguese Foreign Minister Santos Silva
    In Crime Control and Security News
    Office of the [Read More…]
  • Anguilla Travel Advisory
    In Travel
    Reconsider travel to [Read More…]
  • GAO Audits Involving DOD: Status of Efforts to Schedule and Hold Timely Entrance Conferences
    In U.S GAO News
    GAO began 37 new audits that involved the Department of Defense (DOD) in the fourth quarter of fiscal year 2020. Of GAO's 37 requested entrance conferences for those audits, DOD scheduled 33 within 14 days and held 34 within 30 days of GAO's notification. Entrance conferences are initial meetings between agency officials and GAO staff that allow GAO to communicate its audit objectives and enable agencies to assign key personnel to support the audit work. The four entrance conferences that were scheduled more than 14 days after notification were scheduled late due to either difficulties in identifying a primary action officer or aligning the schedules of GAO and DOD officials. The three entrance conferences that were held more than 30 days after notification were scheduled late due to difficulties in aligning the schedules of GAO and DOD officials. GAO's agency protocols govern GAO's relationships with audited agencies. These protocols assist GAO in scheduling entrance conferences with key agency officials within 14 days of their receiving notice of a new audit. The ability of the Congress to conduct effective oversight of federal agencies is enhanced through the timely completion of GAO audits. In past years, DOD experienced difficulty meeting the protocol target for the timely facilitation of entrance conferences. In Senate Report 116-48 accompanying a bill for the National Defense Authorization Act for Fiscal Year 2020, the Senate Armed Services Committee included a provision for GAO to review DOD's scheduling and holding of entrance conferences. In this report, GAO evaluates the extent to which DOD scheduled entrance conferences within 14 days of receiving notice of a new audit, consistent with GAO's agency protocols, and held those conferences within 30 days. This is the final of four quarterly reports that GAO will produce on this topic for fiscal year 2020. In the first three quarterly reports, GAO found that DOD had improved its ability to meet the protocol target. GAO analyzed data on GAO audits involving DOD and initiated in the fourth quarter of fiscal year 2020 (July 1, 2020, through September 30, 2020). Specifically, GAO identified the number of notification letters requesting entrance conferences that it sent to DOD during that time period. GAO determined the number of days between when DOD received GAO's notification letter for each new audit and when DOD scheduled the entrance conference and assessed whether DOD scheduled entrance conferences within 14 days of notification, which is the time frame identified in GAO's agency protocols. GAO also determined the date that each requested entrance conference was held by collecting this information from the GAO team conducting each audit and assessed whether DOD held entrance conferences for new audits within 30 days of notification, which was the time frame identified in the mandate for this review. For more information, contact Elizabeth Field at (202) 512-2775 or Fielde1@gao.gov.
    [Read More…]
  • Travel of Special Envoy for the Sahel Region Dr. J. Peter Pham to Mali
    In Crime Control and Security News
    Office of the [Read More…]
  • Pakistan Travel Advisory
    In Travel
    Reconsider travel to [Read More…]
  • California Man Arrested for $3.6 Million PPP and EIDL Loan Fraud
    In Crime News
    A California man was arrested Thursday on criminal charges related to his alleged scheming to submit fraudulent loan applications seeking millions of dollars in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) COVID-19 relief funds.
    [Read More…]
  • Bankruptcy Filings Fall 11.8 Percent for Year Ending June 30
    In U.S Courts
    Despite a sharp rise in unemployment related to the coronavirus (COVID-19) pandemic, personal and business bankruptcy filings fell 11.8 percent for the 12-month period ending June 30, 2020, according to statistics released by the Administrative Office of the U.S. Courts.
    [Read More…]
  • Cotulla man sentenced for trafficking over 1000 pounds of marijuana
    In Justice News
    A 37-year-old local man [Read More…]
  • Operation Legend: Case of the Day
    In Crime News
    Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend.  Today’s case is out of the Northern District of Illinois.  Operation Legend launched in Chicago on July 22, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
    [Read More…]
  • NASA Scientist Over the Moon With Homegrown Radish Research
    In Space
    How two video meetings, [Read More…]
  • Briefing with Deputy Assistant Secretary for Passport Services Rachel Arndt, Bureau of Consular Affairs On the State Department’s Passport Services
    In Crime Control and Security News
    Rachel Arndt, Deputy [Read More…]
  • Joint Statement on Hong Kong
    In Crime Control and Security News
    Office of the [Read More…]
  • Suburban Chicago Man Sentenced to 12 Years in Federal Prison for Conspiring to Provide Material Support to ISIS
    In Crime News
    An Illinois man was sentenced today to 12 years in prison for conspiring to provide material support to the Islamic State of Iraq and al Sham, a foreign terrorist organization (aka ISIS).
    [Read More…]
  • Justice Department Reaches Agreement with San Luis Obispo County Jail to Ensure Safe and Equal Access to its Programs for Inmates with Mobility Disabilities
    In Crime News
    The Justice Department today reached a settlement under Title II of the Americans with Disabilities Act (ADA) with San Luis Obispo County, California, to ensure that inmates with mobility disabilities have an equal opportunity to participate in San Luis Obispo Jail’s (SLO Jail) programs, services and activities.
    [Read More…]
  • On the Occasion of Vesak Day
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Medicare Advantage Provider to Pay $6.3 Million to Settle False Claims Act Allegations
    In Crime News
    Kaiser Foundation Health Plan of Washington, formerly known as Group Health Cooperative (GHC), agreed to pay $6,375,000 to resolve allegations that it submitted invalid diagnoses to Medicare for Medicare Advantage beneficiaries and received inflated payments from Medicare as a result, the Justice Department announced today.  Kaiser Foundation Health Plan is headquartered in Oakland, California.    
    [Read More…]
  • VERITAS: Exploring the Deep Truths of Venus
    In Space
    Under consideration to [Read More…]
  • Secretary Antony J. Blinken And Secretary of Defense Lloyd Austin With Japanese Prime Minister Yoshihide Suga Before Their Meeting
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Air Deliveries Bring NASA’s Perseverance Mars Rover Closer to Launch
    In Space
    A NASA Wallops Flight [Read More…]
  • Justice Department Issues Guidance On The Use Of Arbitration And Launches Small Business Help Center
    In Crime News
    The Antitrust Division of the Department of Justice announced the publication of two new resources on its website today. 
    [Read More…]
  • Texas Sport Supplement Company Owner Pleads Guilty to Unlawful Distribution of Steroid-Like Drugs
    In Crime News
    A former Texas resident and his sport supplement company pleaded guilty today to a felony charge relating to the introduction of unapproved new drugs into interstate commerce, the Department of Justice announced.
    [Read More…]
  • Remarks by Assistant Attorney General Makan Delrahim on the Future of ASCAP and BMI Consent Decrees
    In Crime News
    Good afternoon. Thank you very much to Vanderbilt Law School and in particular to the Vanderbilt Journal of Entertainment & Technology Law for hosting this event. I love Vanderbilt and I love Nashville, and I’m sorry not to be there in person with you today. Someday when COVID-19 is a memory and social distancing is something you do only with people you don’t like, I look forward to returning to Nashville and reconnecting with many of my old friends there. More importantly, I look forward to returning to some of my favorite honky-tonks and showing off my famous dance moves. I’ve been practicing at home in my free time, to make sure I’m ready.
    [Read More…]
  • Cybersecurity: HHS Defined Roles and Responsibilities, but Can Further Improve Collaboration
    In U.S GAO News
    What GAO Found The Department of Health and Human Services' (HHS) Office of Information Security is responsible for managing department-wide cybersecurity. HHS clearly defined responsibilities for the divisions within that office to, among other things, document and implement a cybersecurity program, as required by the Federal Information Security Modernization Act of 2014. For healthcare and public health critical infrastructure sector cybersecurity, HHS also defined responsibilities for five HHS entities. Among these entities are the Health Sector Cybersecurity Coordination Center, which was established to improve cybersecurity information sharing in the sector, and the Healthcare Threat Operations Center, a federal interagency program co-led by HHS and focused on, among other things, providing descriptive and actionable cyber data. Private-sector partners that receive information provided by the Health Sector Cybersecurity Coordination Center informed GAO that they could benefit from receiving more actionable threat information. However, this center does not routinely receive such information from the Healthcare Threat Operations Center, and therefore is not positioned to provide it to sector partners. This lack of sharing is due, in part, to HHS not describing coordination between the two entities in procedures defining their responsibilities for cybersecurity information sharing. Until HHS formalizes coordination for the two entities, they will continue to miss an opportunity to strengthen information sharing with sector partners. Further, HHS entities led, or participated in, seven collaborative groups that focused on cybersecurity in the department and healthcare and public health sector. These entities regularly collaborated on cyber response efforts and provided cybersecurity information, guidance, and resources through these groups and other means during COVID-19 between March 2020 and December 2020. In addition, the HHS entities coordinated with the Department of Homeland Security's Cybersecurity and Infrastructure Security Agency (CISA) to address cyber threats associated with COVID-19. Further, the HHS entities fully demonstrated consistency with four of the seven leading collaboration practices that GAO identified, and partially addressed the remaining three (see table). Until HHS takes action to fully demonstrate the remaining three leading practices, it cannot ensure that it is improving cybersecurity within the department and the healthcare and public health sector. Extent to Which the Department of Health and Human Services (HHS) Demonstrated Leading Practices for Collaborating Leading practice Extent to which the HHS working groups demonstrated the leading practice Define and track outcomes and accountability ◑ - five groups met this practice Bridge organizational cultures ● – all seven groups met this practice Identify leadership ● – all seven groups met this practice Clarify roles and responsibilities ◑ - six groups met this practice Include relevant participants in the group ● – all seven groups met this practice Identify resources ● – all seven groups met this practice Document and regularly update written guidance and agreements ◑ - six groups met this practice Source: GAO analysis of HHS documentation. | GAO-21-403 Why GAO Did This Study HHS and the healthcare and public health sector rely heavily on information systems to fulfill their missions, including delivering healthcare-related services and responding to national health emergencies, such as COVID-19. Federal laws and guidance have set requirements for HHS to address cybersecurity within the department and the sector. Federal guidance also requires collaboration and coordination to strengthen cybersecurity at HHS and in the sector. GAO was asked to review HHS's organizational approach to address cybersecurity. This report discusses HHS's roles and responsibilities for departmental cybersecurity; HHS's roles and responsibilities for healthcare and public health sector cybersecurity; and HHS's efforts to collaborate to manage its cybersecurity responsibilities. To perform its work, GAO reviewed documentation describing HHS's cybersecurity roles and responsibilities, assessed those responsibilities for fragmentation, duplication, and overlap, and evaluated the department's collaborative efforts against GAO's leading practices for collaboration. GAO also interviewed relevant officials at HHS and CISA, and in the sector.
    [Read More…]
  • Social Security Contracting: Relevant Guidance Should Be Revised to Reflect the Role of Contracting Personnel in Software Development
    In U.S GAO News
    The approach followed by the Social Security Administration (SSA) in awarding and overseeing contracts generally aligns with the requirements GAO reviewed. For the 27 contracts and orders GAO reviewed, SSA varied its approach depending on the contract type used and the dollar value. For example, one of SSA's written acquisition plans acknowledged the risks to the government associated with time-and-materials contracts. From fiscal year 2015 through 2019, SSA obligated 22.7 percent of its contract dollars on time-and-material contracts compared with 10.5 percent at other civilian agencies. In addition, from fiscal year 2015 through 2019, the rate at which SSA used competitive award procedures to achieve the best value for the agency increased by nearly 20 percentage points. This increase was the result of the agency's increased use of competition in its contracting for information technology (IT). SSA relies heavily on IT resources to support the administration of its programs and related activities. During fiscal years 2015 through 2019, about 65 percent of the $8.3 billion in contract obligations were for IT goods and services compared with about 16 percent at other civilian agencies. The figure shows the percentage of obligations for IT goods and services at SSA. Percentage of Social Security Administration's Contract Obligations for Goods and Services during Fiscal Years 2015 through 2019 SSA adopted an Agile approach to software development for some of its critical IT programs in 2015. An Agile approach to software development involves incremental improvements to software rather than the more traditional single-track approach. Subsequently, SSA developed an IT modernization plan in 2017 that states SSA will use an Agile methodology. GAO's draft Agile Assessment Guide states that an organization's acquisition policies and guidance should support an Agile development approach and identify clear roles for contracting personnel, since this is a different approach than federal agencies previously used. However, GAO found SSA's acquisition handbook does not specifically identify a role for contracting personnel with respect to contracts and task orders involving Agile, which GAO has identified as a leading practice. Identifying a role for contracting personnel in the Agile process should better position SSA to achieve its IT modernization goals and provide appropriate levels of oversight. SSA is responsible for delivering services that touch the lives of virtually every American. To do so, SSA relies on a variety of products and services, including information technology (IT) systems. SSA obligates approximately $1.5 billion annually to procure goods and services, 65 percent of which are IT-related. GAO was asked to assess how SSA implements its contracting and acquisition processes. This report examines: (1) how SSA awards and oversees contracts for products and services, and (2) the extent to which SSA has updated its guidance regarding the role of contracting personnel in software development efforts. GAO reviewed SSA's acquisition policies, interviewed contracting officials, and reviewed a non-generalizable sample of 27 high- and lower value contracts and orders with dollars obligated in fiscal years 2014 through 2018. GAO also examined data from fiscal years 2015-2019 to determine what SSA contracted for and reviewed IT guidance. GAO compared SSA's practices to leading practices for Agile software development with respect to the roles of contracting personnel. GAO recommends that SSA revise relevant guidance to identify the roles of contracting personnel in Agile software development. SSA agreed with this recommendation. For more information, contact William Woods at (202) 512-4841 or woodsw@gao.gov.
    [Read More…]
  • Financial Services Industry: Factors Affecting Careers for Women with STEM Degrees
    In U.S GAO News
    What GAO Found Several factors affect women's participation in Science, Technology, Engineering, and Math (STEM) degree programs and subsequent careers in the financial services industry, according to research and stakeholders GAO interviewed. These factors include young girls' early exposure to STEM topics, access to resources such as computers and high-speed internet, and a sense of whether they belong in STEM degree programs. Women's interest in a financial services career also may be affected by the presence of role models and awareness of job opportunities. In recent years, women have represented roughly 30 percent of financial services industry workers with STEM degrees (see figure). Financial Services Industry Workers with Degrees in Science, Technology, Engineering, and Math (STEM) by Gender, Fiscal Years 2014-2019 To encourage elementary and high school girls to learn about STEM, selected financial services firms provide funding and other support to nonprofit organizations that focus on increasing girls' participation in STEM. With this support, nonprofit organizations introduce girls to coding, basic programming, and other activities that may inspire interest in STEM education. Similarly, to encourage college women to pursue STEM degrees, selected firms sponsor conferences for women in STEM, offer scholarships to women studying STEM, and work with nonprofit organizations to help increase students' awareness of careers in the financial services industry. Selected financial services firms recruit women with STEM degrees by collaborating with organizations that work with women STEM majors and sponsoring conferences for women in technology, among other efforts. Some firms have employee retention practices that are tailored to women with STEM expertise. For example, selected firms offer leadership training or employee resource groups for women in technology. Why GAO Did This Study The financial services industry is highly dependent on technology and more than one-fifth of industry employees have STEM degrees. Women continue to be underrepresented in management positions in the financial services industry and in STEM degree programs. As a result, some financial services firms have made efforts to promote interest among women in both STEM and financial services. GAO was asked to review factors affecting financial services careers for women with STEM degrees. This report examines (1) factors that affect the participation of women in STEM degree programs and subsequent participation in financial services careers, (2) how selected financial services firms encourage girls and women to participate in STEM education programs, and (3) how selected financial services firms recruit and retain women with STEM backgrounds. GAO analyzed Equal Employment Opportunity Commission (EEOC) and Department of Education data from 2014 through 2018 and Census Bureau data from 2014 through 2019. At the time of analysis, these were the most recent data available. GAO also reviewed studies on financial services and STEM education. GAO interviewed representatives of financial services firms, industry associations, and nonprofit organizations. GAO selected organizations and representatives based on their participation in previous work and a literature review. EEOC and the Board of Governors of the Federal Reserve System provided technical comments on a draft that GAO incorporated as appropriate. For more information, contact Alicia Puente Cackley at (202) 512-8678 or CackleyA@gao.gov.
    [Read More…]
  • Secretary Blinken’s Call with Qatari Deputy Prime Minister and Minister of Foreign Affairs Al-Thani
    In Crime Control and Security News
    Office of the [Read More…]
  • Operation Legend Expanded to Cleveland, Detroit, and Milwaukee
    In Crime News
    Today, the expansion of Operation Legend was announced in Cleveland, Detroit, and Milwaukee. Operation Legend is a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. The Operation was first launched on July 8 in Kansas City, Missouri, and expanded on July 22, 2020, to Chicago and Albuquerque. Operation Legend is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City. The first federal arrest under Operation Legend was announced on July 20.
    [Read More…]
  • Organ Transplants: Changes in Allocation Policies for Donated Livers and Lungs
    In U.S GAO News
    The Organ Procurement and Transplantation Network (OPTN) develops allocation policies in the United States to determine which transplant candidates receive offers for organs, such as livers or lungs, that are donated from deceased donors. In July 2018, the Department of Health and Human Services (HHS), which oversees OPTN, directed it to change the liver allocation policy to be more consistent with federal regulations. The liver allocation policy changed in February 2020 from a system that, in general, offered donated livers first to the sickest candidates within the fixed boundaries of a donation service area or region to a system based on a candidate's level of illness and distance from the donor hospital. The current liver allocation policy offers livers first to the sickest candidates within 500 nautical miles of the donor hospital using a series of distance-based concentric circles, called acuity circles. The processes used to develop the liver and lung allocation policies had various similarities and differences. For example, while the current liver allocation policy, the 2017 liver allocation policy, and the current lung allocation policy each had public comment periods, the length of these comment periods varied—25 days for the current liver allocation policy; two separate 62-day and 64-day periods for the 2017 liver allocation policy; and 61 days (retroactive) for the current lung allocation policy. In addition, the current lung allocation policy resulted in part from a federal district court order directing HHS to initiate emergency review of the policy. However, the 2017 liver allocation policy—that was approved but never implemented—resulted from a 2012 OPTN Board directive to reduce geographic disparities in organ allocation. HHS oversight of OPTN's processes were similar for all three allocation policies and included reviewing the proposed changes to the policies to ensure compliance with federal regulations, according to HHS officials. Timeline of Selected Events Related to Three Organ Allocation Policies Organ transplantation is the leading form of treatment for patients with severe organ failure. OPTN, a nonprofit entity that was established in 1984 under the National Organ Transplant Act, manages the nation's organ allocation system. In 2019, 32,322 organs were transplanted from deceased donors in the United States. Nevertheless, as of July 2020, close to 110,000 individuals remained on waiting lists for donor organs. Previously, donated livers and lungs were generally offered first to the sickest candidates in donation service areas. However, livers and lungs are now generally offered first to the sickest candidates based on distance. GAO was asked to review the changes to the liver and lung allocation policies. This report describes (1) changes to the liver allocation policy, and (2) similarities and differences in the processes OPTN used to change the liver and lung allocation policies, and federal oversight of these processes, among other things. GAO reviewed documents, including those related to the current liver and lung allocation policies, and the 2017 liver allocation policy; interviewed HHS officials and OPTN members; reviewed the National Organ Transplant Act and its implementing regulations; and conducted a literature review of studies published from January 2017 through April 2020 in peer-reviewed and other publications. HHS and the United Network for Organ Sharing (the contractor serving as OPTN) provided technical comments on a draft of this report, which GAO incorporated as appropriate. For more information, contact James Cosgrove at (202) 512-7114 or cosgrovej@gao.gov.
    [Read More…]
  • 2020 END Wildlife Trafficking Report
    In Climate - Environment - Conservation
    Bureau of Oceans and [Read More…]
  • Secretary Blinken’s Call with the United Arab Emirates Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan
    In Crime Control and Security News
    Office of the [Read More…]
  • Workplace Safety and Health: Actions Needed to Improve Reporting of Summary Injury and Illness Data
    In U.S GAO News
    GAO's analysis of Occupational Safety and Health Administration (OSHA) data showed that the number of recordkeeping violations OSHA cited fluctuated over 15 years (see fig.). An April 2012 federal court decision (that effectively limited the time period for citing these violations) and a January 2015 expansion of OSHA's rule for reporting severe injuries and illnesses coincided with, and were cited by, OSHA staff as key factors explaining these fluctuations. Number Recordkeeping Violations OSHA Cited by Fiscal Year Employers did not report any summary injury and illness data on more than one-half of their establishments that GAO estimated met the reporting requirements (see table). Estimated Compliance with Summary Injury and Illness Reporting Requirement Calendar year Estimated establishments that met summary injury and illness reporting requirements Establishments whose employers submitted summary injury and illness data     Number Percent 2016 451,000 159,000 35% 2017 454,000 189,000 42% 2018 459,000 212,000 46% Source: GAO analysis of U.S. Census Bureau County Business Patterns data and Occupational Safety and Health Administration (OSHA) summary (300A) injury and illness data. Establishments in all 50 states and the District of Columbia reported these data. Data rounded to the nearest thousand. | GAO-21-122 OSHA has limited procedures for encouraging compliance with this reporting requirement and for penalizing non-compliance. For example, OSHA officials told GAO that they identified nearly 220,000 employers in 2019 who may not have reported their data and mailed reminder postcards to about 27,000 of them. OSHA also cited 255 employers for failure to report their data from mid-December 2017 through September 2019 after OSHA conducted on-site inspections. OSHA uses the summary injury and illness data to target high-risk establishments for certain comprehensive inspections. Because OSHA has not evaluated its procedures, it does not know the extent to which its efforts may be improving injury and illness reporting or what other efforts it should undertake. Absent more complete information, OSHA is at risk for not achieving its objective of targeting inspections to establishments with the highest injury and illness rates. In 2018, about 3.5 million workers suffered job-related injuries, and illnesses and 5,250 died on the job, according to Bureau of Labor Statistics data. Employers are required to record work-related injuries and illnesses, promptly report severe injury and illness incidents to OSHA, and certain employers are required to report summary injury and illness data electronically on an annual basis. GAO was asked to review how OSHA addresses recordkeeping violations, and implements its rule for reporting summary data. This report examines: (1) how and why recordkeeping violations changed from fiscal years 2005 through 2019 and (2) the extent to which employers report summary injury and illness data and OSHA has taken steps to ensure compliance with this requirement. GAO analyzed 15 years of OSHA recordkeeping violation data and compared OSHA and Census data to estimate how many employers complied with summary reporting requirements. GAO also reviewed agency procedures and relevant federal laws and regulations and interviewed OSHA headquarters officials and staff at seven OSHA area offices, selected for geographic dispersion and varying amounts of recordkeeping violations. GAO recommends OSHA evaluate procedures for ensuring reporting of summary data and develop a plan to remediate deficiencies. OSHA generally concurred with our recommendation. For more information, contact Thomas Costa at (202) 512-4769 or costat@gao.gov.
    [Read More…]
  • Higher Education: IRS And Education Could Better Address Risks Associated with For-Profit College Conversions
    In U.S GAO News
    What GAO Found In its December 2020 report, GAO identified 59 for-profit college conversions that occurred from January 2011 through August 2020. A for-profit college may convert to nonprofit status for different reasons. In about one-third of the conversions, GAO found that former owners or other officials were insiders to the conversion—for example, by creating the tax-exempt organization that purchased the college or retaining the presidency of the college after its sale (see figure). While leadership continuity can benefit a college, insider involvement in a conversion poses a risk that insiders may improperly benefit—for example, by influencing the tax-exempt purchaser to pay more for the college than it is worth. Once a conversion has ended a college's for-profit ownership and transferred ownership to an organization the Internal Revenue Service (IRS) recognizes as tax-exempt, the college must seek Department of Education approval to participate in federal student aid programs as a nonprofit college. GAO also found in its December 2020 report that Education had approved 35 colleges as nonprofit colleges since January 2011 and denied two; nine were under review and 13 closed prior to Education reaching a decision. Figure: Example of a For-Profit College Conversion with Officials in Insider Roles IRS guidance directs staff to closely scrutinize whether significant transactions with insiders reported by an applicant for tax-exempt status will exceed fair-market value and improperly benefit insiders. If an application contains insufficient information to make that assessment, guidance says that staff may need to request additional information. In its December 2020 report, GAO found that for two of 11 planned or final conversions involving insiders that were disclosed in an application, IRS approved the application without certain information, such as the college's planned purchase price or an appraisal report estimating the college's value. Without such information, IRS staff could not assess whether the price was inflated to improperly benefit insiders, which would be grounds to deny the application. If IRS staff do not consistently apply guidance, they may miss indications of improper benefit. Education has strengthened its reviews of for-profit college applications for nonprofit status, but it does not monitor newly converted colleges to assess ongoing risk of improper benefit. In two of three cases GAO reviewed in depth for its December 2020 report, college financial statements disclosed transactions with insiders that could indicate the risk of improper benefit. Education officials agreed that they could develop procedures to assess this risk through its audited financial statement reviews. Until Education develops and implements such procedures for new conversions, potential improper benefit may go undetected. Why GAO Did This Study A for-profit college may convert to nonprofit status for a variety of reasons, such as wanting to align its status and mission. However, in some cases, former owners or other insiders could improperly benefit from the conversion, which is impermissible under the Internal Revenue Code and Higher Education Act of 1965, as amended. This statement—based on GAO's December 2020 report (GAO-21-89)—discusses what is known about insider involvement in conversions and the extent to which IRS and Education identify and respond to the risk of improper benefit. We also requested updates from IRS and Education officials on any agency actions taken to implement the December 2020 report recommendations.
    [Read More…]
  • Laredoan sentenced for importing meth inside tacos
    In Justice News
    A 31-year-old resident [Read More…]
  • Florida Man Sentenced for $1.3 Million Securities Fraud Scheme
    In Crime News
    A Florida man was sentenced today to more than four years in prison for operating an investment scheme in which he used investor funds to repay other investors and misappropriated funds for himself.
    [Read More…]
  • Secretary Antony J. Blinken and Norwegian Foreign Minister Ine Marie Eriksen Soreide Before Their Meeting
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Secretary Antony J. Blinken and German Chancellor Angela Merkel Before Their Meeting
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Voters with Disabilities: State and Local Actions and Federal Resources to Address Accessibility of Early Voting
    In U.S GAO News
    What GAO Found Selected states and localities have taken steps to make voting prior to Election Day accessible for people with disabilities, but election officials and advocacy officials reported that challenges persist. Election officials reported taking steps to make in-person early voting accessible such as addressing barriers to physical access and providing accessible voting equipment (see figure), but election and advocacy officials reported challenges including physical obstacles such as gravel parking lots and voting equipment not being set up properly. Voting by mail may be an accessible option and has been used more frequently by those with disabilities than others. However, election and advocacy officials also noted that some voters with disabilities have difficulty marking paper mail ballots; six of seven states GAO contacted offer them electronic delivery and marking options. Steps Taken by Selected States and Localities to Make Early In-Person Voting Accessible Selected states and localities have taken steps to make voting information available and accessible, but voters with disabilities may encounter challenges with both. States and some localities have provided information about accessible voting options on their websites, but advocacy officials reported challenges, such as one state not providing information about the accessibility features of its voting equipment. States have also taken steps to make websites accessible, such as ensuring compatibility with screen readers used by people with visual disabilities. However, election and advocacy officials reported, among other things, that some website content such as digital materials, lacks accessibility features and some content is not written in plain language. Federal agencies have assisted state and local election officials in their efforts to ensure accessible voting. The Department of Justice (DOJ) has provided guidance and educational resources on voting accessibility, such as a checklist for assessing polling places, which some selected states and localities have found useful. The Election Assistance Commission (EAC)—a national clearinghouse of information about election administration—has also provided resources on topics such as accessible voting equipment and partnering with disability advocates. However, selected states and localities GAO contacted reported mixed feedback on the usefulness of EAC resources. Although the EAC communicates regularly with election officials, it does not have a mechanism for collecting and using feedback from these officials about the usefulness of its existing accessibility resources or additional resource needs. Implementing such a mechanism would better positon the EAC to meet election officials' needs. Why GAO Did This Study An estimated 38 million Americans with disabilities were eligible to vote in the November 2020 election, according to a Rutgers University study. Federal law generally requires that all aspects of voting be accessible to people with disabilities. Recent increases in voting in person and by mail prior to Election Day have focused attention on these voting modes. GAO was asked to examine the accessibility of voting prior to Election Day and voting information. This report addresses steps taken by selected states and localities to (1) make voting prior to Election Day accessible, and the challenges in doing so; and (2) make voting information available and accessible, and the challenges in doing so. It also addresses (3) DOJ and EAC efforts to assist states and localities with voting accessibility. GAO interviewed state election and advocacy officials in seven states, and local officials in six of the states and reviewed associated documentation. These states were selected to provide variation in turnout between voters with and without disabilities, and election policies, among other factors. The results from these states and localities are not generalizable, but provide perspectives on accessibility. GAO also analyzed 2016 and 2020 data from a nationwide survey of voters, reviewed DOJ and EAC guidance and resources, and interviewed federal officials.
    [Read More…]
  • Montana Man Indicted on Federal Hate Crime and Firearm Charges
    In Crime News
    A federal grand jury in Billings, Montana, returned an indictment on May 20 charging a Montana man with hate crime and firearm violations for allegedly firing a gun into an individual’s house and threatening the individual with violent, homophobic slurs.
    [Read More…]
  • Eric Ueland Designated Authorities and Functions of Under Secretary for Civilian Security, Democracy, and Human Rights
    In Crime Control and Security News
    Michael R. Pompeo, [Read More…]
  • Togo’s National Day
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • AAR Corp. Agrees to Pay $11 Million to Settle False Claims Act Allegations on Aircraft Maintenance Contract and to Pay Penalties Assessed by the FAA
    In Crime News
    AAR Corp., located in Wood Dale, Illinois, and its subsidiary, AAR Airlift Group Inc. (Airlift), located in Melbourne, Florida, have agreed to pay the United States $11,088,000 to resolve False Claims Act allegations in connection with aircraft maintenance services performed by Airlift on two U.S. Transportation Command (TRANSCOM) contracts. 
    [Read More…]
  • Medicaid: CMS Needs to Implement Risk-Based Oversight of Puerto Rico’s Procurement Process
    In U.S GAO News
    Like other U.S. territories and states, Puerto Rico implements major functions of its Medicaid program by procuring services from contractors, such as the delivery of managed care services to Medicaid beneficiaries. In 2018, procurement costs represented $2.4 billion of Puerto Rico's $2.5 billion in total Medicaid expenditures. A 2019 federal indictment alleging Puerto Rico officials unlawfully steered Medicaid contracts to certain individuals has raised concerns about Puerto Rico's Medicaid procurement process, including whether this process helps ensure appropriate competition. The Centers for Medicare & Medicaid Services (CMS), within the Department of Health and Human Services, is responsible for overseeing the Medicaid program. CMS requires states and territories to use the same process for Medicaid procurements as they do for their non-federal procurements. However, CMS has not taken steps to ensure Puerto Rico has met this requirement. Instead, CMS has relied on Puerto Rico to oversee the territory's procurement process and to attest to its compliance. CMS approved Puerto Rico's attestation of compliance in 2004 and has not required subsequent updates. CMS officials told GAO that states and territories are in the best position to ensure compliance with their respective procurement laws. GAO and others have found that competition is a cornerstone of procurement. Using competition can reduce costs, improve contractor performance, curb fraud, and promote accountability. GAO reviewed selected Puerto Rico Medicaid procurements against federal procurement standards designed to promote competition and reduce risks of fraud. States and territories are generally not required to meet such standards. However, GAO and others have found that such standards can indicate whether a state's or territory's procurement process includes necessary steps to achieve fair competition. GAO found that seven of the eight selected Puerto Rico procurements did not include important steps to promote competition and mitigate the risk for fraud, waste, and abuse, underscoring the need for federal oversight. Competitive procurements. The requests for proposals for two of the three competitive procurements GAO reviewed did not include certain information on factors used to evaluate proposals and make awards. In contrast, Puerto Rico's managed care procurement—the largest procurement reviewed—included this information. Noncompetitive procurements. None of the five noncompetitive procurements GAO reviewed documented circumstances to justify not using competitive procurements, such as a lack of competition or an emergency. Puerto Rico officials explained that territorial law allows noncompetitive procurement for professional services regardless of circumstances. Because CMS does not oversee Puerto Rico's procurement process, the agency lacks assurance that Puerto Rico's Medicaid program is appropriately managing the risk of fraud, waste, and abuse. Procurements that did not include important steps to promote competition could have unnecessarily increased Medicaid costs, reducing funding for Medicaid services to beneficiaries. States' and U.S. territories' Medicaid procurement processes can directly affect their ability to prevent fraud, waste, and abuse in the program. A 2019 federal indictment alleging fraudulent Medicaid procurements in Puerto Rico has raised questions about the program's oversight. The Consolidated Appropriations Act, 2020 includes a provision for GAO to review oversight of Puerto Rico's Medicaid procurement process and its use of competition. This report examines CMS oversight of Puerto Rico's procurement process from its initial steps through the award, and how it helps ensure competition. GAO reviewed federal regulations, guidance, and Puerto Rico's December 2020 procurement reform plan; interviewed Puerto Rico and federal officials; and reviewed eight awards that represented about 97 percent of the costs of Puerto Rico's procurements in effect as of April 2020. These procurements were selected based on variation in cost, use of competition, and other factors. GAO assessed whether CMS addressed risks in Puerto Rico's procurement process by reviewing selected procurements against certain federal standards that apply to other non-federal entities and aim to mitigate the risk of fraud, waste, and abuse. GAO also assessed CMS's policies and procedures against federal internal control standards. GAO recommends that CMS implement risk-based oversight of the Medicaid procurement process in Puerto Rico. The Department of Health and Human Services concurred with this recommendation. For more information, contact Carolyn L. Yocom at (202) 512-7114 or YocomC@gao.gov.
    [Read More…]
  • Secretary Antony J. Blinken to U.S. Mission Canada
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Saturn’s Moon Titan Drifting Away Faster Than Previously Thought
    In Space
    The new research by [Read More…]
  • Abusive Tax Schemes: Offshore Insurance Products and Associated Compliance Risks
    In U.S GAO News
    Federal law provides certain tax benefits for transactions involving genuine insurance products, including insurance products held offshore. While taxpayers may lawfully hold offshore insurance products, they contain features that make them vulnerable for use in abusive tax schemes. For example, offshore insurance products can be highly technical and individualized, making enforcement challenging, according to Internal Revenue Service (IRS) officials. Furthermore, insurance is not defined by federal statute, potentially making a determination of what constitutes genuine insurance for federal tax purposes unclear. Offshore micro-captive insurance products, which are made by small insurance companies owned by the businesses they insure, may be abused if the corporate taxpayer improperly claims deductions for payments made to a micro-captive for federal tax purposes. Courts have applied certain considerations to determine whether these deductions can be claimed. For example, one consideration is whether the insurance legitimately distributes risk across participating entities. IRS officials said they expend significant resources reviewing these schemes because of the varied ways insurance companies may work. Offshore variable life insurance products, which are insurance policies with investment components over which the insured has certain control, may be abused if the individual taxpayer fails to meet IRS reporting requirements or pay appropriate federal income taxes. Federal regulations require that taxpayers with certain foreign life insurance accounts report this information to IRS and the Financial Crimes Enforcement Network. The structure of life insurance products may vary and taxpayers are required to pay taxes based on the underlying type of financial product the policy represents. The figure below shows how noncompliance may occur when taxpayers use life insurance and micro-captive insurance in abusive tax schemes. Abusive Use of Micro-captive and Life Insurance When structured in abusive ways, insurance products held offshore can be designed to aid in unlawful tax evasion by U.S. taxpayers. Two products that IRS has recently warned have the potential for such abuse include micro-captive insurance and variable life insurance policies. GAO was asked to review how taxpayers may abuse offshore insurance products. This report describes (1) how offshore insurance tax shelters provide opportunities for income tax abuse; (2) how offshore micro-captive insurance is used and how it is used in abusive tax schemes; and (3) how offshore variable life insurance is used and how it is used in abusive tax schemes. GAO reviewed IRS tax and information return forms, relevant U.S. case law and IRS guidance, academic and trade publications, and applicable statutes and regulations. GAO also interviewed IRS officials and professionals in the tax preparation and insurance industries. For more information, contact Jessica Lucas-Judy at (202) 512-9110 or LucasJudyJ@gao.gov.
    [Read More…]
  • Home Foreclosure Sales: FHA, Rural Housing Service, and VA Could Better Align Program Metrics with Their Missions
    In U.S GAO News
    By 2019, the number of foreclosed properties—known as real estate-owned (REO) properties—that federal entities owned declined to historically low levels because of the housing market recovery and the sale of many of the properties (see figure). Real Estate-Owned Properties of Selected Federal Entities, 2004–2019 Note: Fannie Mae and Freddie Mac are the government-sponsored enterprises shown here. Data for the enterprises and FHA are calendar year; for VA and RHS, fiscal year ending September 30. The entities GAO reviewed each have processes to oversee their REO maintenance contractors' activities and performance, including internal and external performance reviews and on-site inspections. Entities generally have standardized maintenance policies for REO properties across the country, such as emergency repairs for broken windows and routine maintenance requirements for the frequency of cutting grass. GAO found that the performance of contractors whose documentation GAO reviewed generally met entities' standards and requirements. However, entities' oversight of contractors identified instances of underperformance in maintenance. For instance, the Federal Housing Administration (FHA) recouped almost $3 million from seven property maintenance contractors for work below quality standards from 2017 to 2020. The REO program metrics of FHA, the Department of Veterans Affairs (VA), and the Rural Housing Service (RHS) focus on required financial goals, such as minimizing losses, but do not always align fully with other program goals or agency missions. For example, FHA does not collect comprehensive information on REO property sales to public-sector homeowners or local nonprofits—missing an opportunity to measure the extent to which its REO program supports its goal to strengthen neighborhoods and communities. Similarly, VA and RHS lack metrics that would show whether their REO programs align with their broader agency missions to serve veterans and rural homebuyers, respectively. Incorporating additional metrics could help FHA, VA, and RHS ensure that their REO programs assist in meeting their agencies' missions. Poor maintenance of foreclosed properties can negatively affect communities and threaten neighborhood stability. FHA, VA, RHS, and Freddie Mac are among the federal entities owning foreclosed properties through REO programs. GAO was asked to review how these federal entities monitor REO property conditions. The objectives this report examines include trends in the number of REO properties; oversight of maintenance contractors; and whether metrics used to assess REO program performance align with entities' missions. GAO reviewed and analyzed reports and data on the number of REO properties and documentation on FHA, Freddie Mac, VA, and RHS oversight of REO property maintenance from 2017 to 2020. GAO also analyzed data on REO reimbursements to contractors for maintenance activities. GAO recommends that FHA, VA, and RHS consider additional REO program metrics that measure how the programs support their respective missions of strengthening communities and serving veterans and rural homeowners. The entities generally agreed with the recommendation. For more information, contact John H. Pendleton at (202) 512-8678 or pendletonj@gao.gov.
    [Read More…]
  • Remarks for the Monaco Blue Initiative
    In Climate - Environment - Conservation
    John Kerry, Special [Read More…]
  • The United States Targets Foundations Controlled by Iran’s Supreme Leader
    In Crime Control and Security News
    Michael R. Pompeo, [Read More…]
  • Armenia’s Parliamentary Elections
    In Crime Control and Security News
    Ned Price, Department [Read More…]
  • Former Army Green Beret Sentenced for Russian Espionage Conspiracy
    In Crime News
    A Virginia man and former Army Green Beret was sentenced today to XX years in prison for conspiring with Russian intelligence operatives to provide them with U.S. national defense information.
    [Read More…]
  • Farmworkers: Additional Information Needed to Better Protect Workers from Pesticide Exposure
    In U.S GAO News
    The U.S. Environmental Protection Agency (EPA) and states ensure compliance with the Agricultural Worker Protection Standard (WPS) primarily through inspections of farms. The states collect some information—such as the number of inspections they conduct—and provide that information to EPA as part of cooperative agreements between EPA and the states. The extent of use of the designated representative provision of the WPS, and its effect on the availability of pesticide information, are not known because EPA does not collect information on the use of the provision and does not coordinate with states to do so. EPA's guidance to states for conducting inspections encourages, but does not require, state inspectors to ask farmers and farmworkers about whether a designated representative has been used. EPA officials said that the agency has not asked states to collect information on the provision because the agency has focused on compliance with other aspects of the WPS. By coordinating with states, through the cooperative agreements or some another mechanism, to collect information on the use of the designated representative provision, EPA would be better positioned to determine whether the provision is serving its intended purpose. Some stakeholders have raised concerns about potential misuse of pesticide information, such as other farmers using the information obtained by a designated representative to gain a competitive advantage. However, EPA officials, state officials, and stakeholders told us they did not know of any instance in which a person serving as a designated representative misused the pesticide information obtained from farmers. Neither EPA's guidance nor its website explain the agency's expectations for appropriate use or describe how such information could be misused. EPA officials said that the agency has not explained what constitutes misuse. By explaining, in the agency's guidance, on its website, or through another mechanism, EPA's expectations about appropriate use of pesticide information obtained by designated representatives, including the misuse of such information, the agency could ensure designated representatives understand the importance of the information in reducing the consequences of pesticide exposure. Farmworkers Picking Strawberries at a Farm The use of pesticides contributes to U.S. agricultural productivity by protecting crops against pests or weeds, but this use may pose risks to human health. To reduce the consequences of pesticide exposure to farmworkers' health, EPA revised the WPS in 2015 to include a provision that allows a farmworker to identify a person who can request, for their benefit, certain pesticide information from their employer—this is called the designated representative provision. This report examines (1) what is known about the extent of use and effect of the designated representative provision on the availability of pesticide information and (2) what is known about any misuse of information obtained through the provision. GAO reviewed laws, regulations, and guidance, and interviewed officials from EPA and 13 selected states about how they implement and oversee compliance with the standard. GAO also interviewed stakeholders, such as farmer groups and farmworker advocacy groups. GAO is making two recommendations to EPA to (1) coordinate with states to collect information on the use of the designated representative provision and (2) take steps to explain, in guidance, on its website, or through another mechanism, the agency's expectations about appropriate use of pesticide information obtained by a designated representative and describe potential misuse of such information. EPA agreed, in part, to both recommendations. For more information, contact Steve D. Morris at (202) 512-3841 or morriss@gao.gov.
    [Read More…]
  • The Department of State Dedicates the New U.S. Embassy in Niamey, Niger
    In Crime Control and Security News
    Office of the [Read More…]
  • Woman Sentenced to 198 Months in Prison for Teaching and Distributing Information About Weapons of Mass Destruction
    In Crime News
    A New York woman was sentenced today to 198 months, about 16 and a half years, in prison for her role in planning a terrorist attack in the United States.
    [Read More…]
  • Secretary Antony J. Blinken at a Virtual Meeting with Japanese Business Leaders 
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • University of Miami to Pay $22 Million to Settle Claims Involving Medically Unnecessary Laboratory Tests and Fraudulent Billing Practices
    In Crime News
    The University of Miami (UM) has agreed to pay $22 million to resolve allegations that it violated the False Claims Act by ordering medically unnecessary laboratory tests, and submitting false claims through its laboratory and off campus hospital based facilities (“Hospital Facilities”).
    [Read More…]
  • Department of Justice Publishes Proposed Regulations Articulating the Registration Requirements for Sex Offenders under the Sex Offender Registration and Notification Act
    In Crime News
    The Department of Justice has published proposed regulations that provide a clear and comprehensive statement of sex offenders’ registration requirements under the federal Sex Offender Registration and Notification Act (SORNA).  SORNA requires convicted sex offenders to register in the states in which they live, work, or attend school, and it directs the Attorney General to issue regulations and guidelines to implement SORNA. 
    [Read More…]