(Fraud Alert)
In recent weeks, two cybercrimes involving "phishing" emails targeting LSC program online payroll accounts were reported to the OIG; in these instances, the perpetrators were able to redirect direct deposits from employee payroll accounts to the perpetrator's account. Thieves continue to implement new tactics to trick accounting and human resource officials to update employee direct deposit information, which could lead to the theft of the employee's payroll check. Malicious actors may impersonate a trusted person or a person of authority to entice an employee to perform certain payroll…
The Legal Services Corporation (LSC), Office of Inspector General (OIG), has been made aware that LSC's main number telephone was compromised in a spoofing scam. According to the Better Business Bureau (BBB)1, spoofing scams are committed by individuals who use technology to modify caller ID information to trick individuals into believing that an incoming call is local, or from someone they know. The scammers engage the individuals in conversation attempting to gain personal identifying information and/or elicit money. This scheme is known as "spoofing" or "spoof calling."LSC has received…
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Theft from Program Receiving Federal Funds was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
An OIG investigation led to a former employee of an LSC Grantee agreeing to plead guilty to two counts of theft from a program receiving Federal funds. The former employee was a Program Manager overseeing a grant that utilized the services of volunteers and interns. The investigation found that the Program Manager submitted false travel claims for the volunteers and interns and then deposited the reimbursement checks into the Program Manager's personal bank account. The individuals to whom the reimbursement checks were written had no knowledge that the travel claim had been filed in their…
On May 22, 2018, Christoffer Denney, former Director of Information Technology (IT) at the Legal Aid Society of Orange County, Inc. (LASOC), was indicted by the U.S. Attorney's Office for the Central District of California. The indictment charged Denney with theft related to his use of a LASOC credit card to purchase sports trading cards (sports memorabilia).
Savannah, GA: In a May 21, 2018, Press Release United States Attorney Bobby L. Christine, Southern District of Georgia, cited that "Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar Ill, announced today the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force."
Quality Control ReviewsLSC OIG performs Quality Control Reviews of the audited financial statements of LSC recipients conducted by Independent Public Accountants. The primary purpose of a Quality Control Review is to determine whether the financial statement audit work, compliance audit work, and the associated review of internal controls over both financial reporting and compliance are conducted in accordance with applicable standards and the OIG guidance. The standards and guidance include Government Auditing Standards, American Institute of Certified Public Accountants standards, Uniform…