UNCAC IRG Meeting Money Laundering: Enforcement and Case Studies from New York Rose Gill Hearn Principal, Municipal Integrity Bloomberg Associates

2 o Conducted 5,500 corruption prevention seminars for NYC employees and vendors. o Recovered $550 million+ for NYC. o Made 6,700 arrests on corruption related charges. o Issued and implemented 3,000 written recommendations to remediate corruption vulnerabilities. o Reduced turnaround time for investigations by 55%. NYC Department of Investigation ( )

3 Case Study: Uncovered vendors’ overcharging NYC o Contractors billed $700 million for automated payroll/timekeeping system. o DOI Forensic Audit: Follow the money. o Findings:  Shell companies  Millions in kickbacks to top consultants  Money laundering o DOI partners with federal prosecutors. o Result: 8 convictions, $500M recovered for NYC, $40M forfeiture to DOI, automated payroll/timekeeping system completed and in use. Recovery of Public Money: “CityTime Case” Source: U.S. Department of Justice