1. 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:

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

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

4. We Protect The War Fighter.

5. 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.”

6. 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

7. M240 Bipod Debacle

8. 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

9. 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.

10. Eotech Overview:

11. 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.

12. Kandahar Barracks Afghanistan: A Train Wreck

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

14. 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.”

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

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

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

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

19. s of Interest

20. Investigative Motion
Why
Filter
Finite
Infinite

21. Report it! Special Agent Jesse Zander United States Army CID
Major Procurement Fraud Unit
700 South Quaker Lane, Suite 65
West Hartford, CT 06110
Link for the DOD IG Hotline Form:
Phone Number:
You can remain anonymous

22. QUESTIONS ?