Many Faces of Fraud Seminar 24 October 2019 US Army Criminal Investigation Command Major Procurement Fraud Unit Hartford Ct fraud resident agency Many Faces of Fraud Seminar 24 October 2019 SA Jesse Zander Office: 860-233-8673

Case Studies In Procurement Fraud with a Brief Insight into Investigative Motivation.

Case Studies In Procurement Fraud with a Brief Insight into Investigative Motivation. WHAT WHY

We Protect The War Fighter.

Civil False Claims Act and The Civil War Dishonest government contractors were making out like bandits during the war, including one who sold the Union moth-eaten blankets and reportedly said: “You can sell anything to the government, at almost any price you’ve got the guts to ask.”

Historical Cases Can cost lives, not just money-MARSOC Marines and K9 killed in fire caused by nonconforming electrical parts and substandard wiring in Afghanistan

M240 Bipod Debacle https://www.youtube.com/watch?v=7YR6NJwRjn8&spfreload=10

Federal Prison Industries (FPI) Inmates made defective helmets for US Army US Army approved a $30 million contract with ArmorSource to manufacture the Advanced Combat Helmet (ACH) for soldiers. After winning the contract, FPI, a corporation that provides services and products made by federal inmates through a correctional program, was subcontracted from ArmorSource

Federal Prison Industries (FPI) Inmates made defective helmets for US Army The investigation revealed the parts of the helmet were merely filled with dust and fragments of Kevlar, and many of the helmet’s serial numbers were altered or changed. ArmorSource agreed to pay the US Government $3,087,366 and about 126,052 ACH were recalled, costing the government over $19 million.

Eotech Overview: https://www.youtube.com/watch?v=X_2VCDcfXLM

Eotech Disaster Manhattan U.S. Attorney Files and Simultaneously Settles False Claims Act Lawsuit Against Defense Contractor and its President for Multi-Year Fraud Involving Sale of Defective Weapon Sights to U.S. Military and Other Agencies. EO Tech manufactured and sold Holographic Weapons Sights (HWS) to US Army units, to include the Special Operations Command since 2001. The investigation revealed HWS had material defects causing performance issues at temperature extremes as well as in high moisture environments.

Kandahar Barracks Afghanistan: A Train Wreck

Harry Krantz & Bay Components Investigation Counterfeit Integrated Circuits & the Kiowa Warrior Helicopter

The Nutty Professor “There is no kind of dishonesty into which otherwise good people more easily and frequently fall than that of defrauding the government.”

Recent Investigative Focus Buy American and Berry Amendment/DFARS Clause Preference for Certain Domestic Commodities

Detection Internal Reviews and Audits Hotline Tips Proactive initiatives Outside Agency Referrals Registered/Open Sources Whistleblowers / Qui Tam Suits Contracting Personnel

Investigative Techniques Undercover/Covert Task Force Operations Email/Phone Records Forensic Data Recovery/Examinations Financial Records Extradition

Remedies Criminal Civil (recovery of funds back to Army) Contractual /Administrative (You Have The Power!) Not all bad contracting is Fraud!

Emails of Interest

Investigative Motion Why Filter Finite Infinite

Report it! Special Agent Jesse Zander United States Army CID Major Procurement Fraud Unit 700 South Quaker Lane, Suite 65 West Hartford, CT 06110 860-236-2140 Link for the DOD IG Hotline Form: https://www.dodig.mil/hotline/submit_complaint1a.cfm Phone Number: 800-424-9098 You can remain anonymous

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