Here is an ezample of indirect employee fraud: Mark worked for “Big D“ Advertising. In his role as purchase agent, Mark paid a company in New York City nearly $100 000 for conracted work that should have cost about $50,000. The contractor paid Mark a kickback or nearly $30,000. Only after someone noticed that the qualty of work performed by the New York contractor decreased substantially was the fraud suspected and detected.
endor fraud has been i he news time and again over the years because of significant overcharges by major vendors on defense and other government contracts. Vendor fraud which is extremely common in the United States comes in two main varieties: (1) fraud perpetrated by vendors acting alone and (2) fraud perpetrated through collusion between buyers and vendors. Vendor fraud ussualy result in either and overcharge for purchased goods even though payment was made.
A recent Department of Defence case in typical vendor fraud . As a result of a joint FBI/ Department of Defense investigation an Illions based corporation pleaded quilty to false claims and conspiracy harges pertaining to cost overruns and executive personnel expenses charged to the Department of Defense. The corporation agreed to make restitution of $115 million to the government. The corporation later agrred to an additional payment of $71.3 millionto resolve pending admininistrative and noncriminal issues and to dismiss ceratain officers proven criminally culppable trough investigation.
At the time this text was going to press large potential vendor fraid claims were being investigated involving Halliburton`s contracts in helping to rebuild Iraq. It has been alleged that the Pentagon secretaly awarded billions of dollars of Iraq oil field work to to LHalligurtin without giving any other conractors a chance to bid on the work. Allegations of serious overcharging of the govenrment by Halliburton have also been made.
In Customer Fraud customers either do not pay for goods purchased they get something for nothing or they deceive organization into giving them something they should not have. For example consider the bank customer who walked into a branch of a large bank one Saturday morning and convinced the branch manager to bive her a $525, 000 xhasier` chek.