FBI Norfolk Warns Against Stimulus Funding Fraud

Today, the Norfolk FBI announced their efforts to prevent, detect, and deter fraud related to stimulus funding associated with the American Recovery and Reinvestment Act (ARRA).

The ARRA was signed in 2009 and added $787 billion into the U.S. economy, providing jobs and other resources for states and local communities. Examples of potential criminal acts include public officials using their position for personal gain, theft of government funds, extortion, contract bid-rigging, false appraisals, falsifying documents to qualify for funding, and contractor fraud. The FBI has pinpointed the following programs that have been the most vulnerable to fraud:

• Transportation and Infrastructure: Schemes historically involve bribery of contracting officers and inspectors and fraudulent billing for inferior materials or work not performed.
• Education: Funding and contracts for public schools are typically conducted by an independent board with full spending authority and little or no oversight.
• Energy/Environment: The increased popularity of renewable or alternative forms of energy—coupled with stimulus efforts to promote environmentally-friendly energy sources and create “green jobs”—will result in more projects and more opportunities for corruption and fraud.
• Housing: Funding to redevelop foreclosed or abandoned homes will be provided to state and local governments via grants, providing opportunities for public officials or grant recipients to manipulate the program for personal gain.

Anyone who suspects stimulus funding fraud, whether related to ARRA or another economic stimulus program, is urged to submit a tip at: https://tips.fbi.gov/ or contact the Norfolk FBI at (757) 455-0100.