Transcript VA Office of Inspector General Criminal Investigations

VA Office of Inspector General
Criminal Investigations Division
Fraud Awareness Briefing
VA Office of Inspector General

Audit Division

Healthcare Inspections

Administrative Investigations Division

Criminal Investigations Division

Investigate violations of federal law involving
VA Programs and facilities.

Special Agents

arrest authority, carry firearms, execute search
warrants, conduct undercover operations
Subjects of Investigation
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Veterans
VA beneficiaries
VA fiduciaries
VA employees
Healthcare
 Benefits
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VA contractors/vendors/grantees
Private citizens
Cases we investigate
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From complex contract fraud to homicide.
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Prosecutable crimes that affect VA.
Federal Criminal/Civil Statutes
 Washington State Penal Code
 Local Regulations

Define “FRAUD”
Main Entry: fraud
Pronunciation: 'frod
Function: noun
Etymology: Middle English fraude, from Middle French, from
Latin fraud-, fraus
1 a : DECEIT, TRICKERY; specifically : intentional perversion
of truth in order to induce another to part with something of
value or to surrender a legal right b : an act of deceiving or
misrepresenting : TRICK
2 a : a person who is not what he or she pretends to be :
IMPOSTOR; also : one who defrauds : CHEAT b : one that is
not what it seems or is represented to be
synonym see DECEPTION, IMPOSTURE
Types of Crime
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Frauds
VBA Frauds
 VHA Frauds
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General Crimes
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primarily associated with VHA
Types of Fraud Cases/VBA
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Embezzlement
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Theft of Benefits
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False Statements
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Equity Skimming/Loan Guarantee
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Construction Fraud
Types of Fraud Cases/VBA
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Deceased Payee Cases
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Credit Card Fraud
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Fiduciary Fraud
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Disability and Workers’
Compensation Fraud
Types of Fraud Cases/VHA
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Embezzlement
Theft of Benefits
Identity Theft
Theft of Government Property
Procurement Fraud
General Crimes affecting VHA
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Drug Diversion
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For Profit
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For Use
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Theft of Property
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Child Pornography
Patient Abuse
Homicide
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patient by patient
patient by staff
When you should call us.
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Whenever you think
something is wrong and
there may be criminal
conduct involved.
Call us early, when allegation
first surfaces.
Many referrals don’t result in
cases.
Encourage informal contacts.

38 CFR 1.201
Employee's duty to report.

38 CFR 1.203
Information to be reported to VA Police.

38 CFR 1.204 Information to be reported to the Office
of Inspector General. Criminal matters involving felonies
will also be immediately referred to the Office of
Inspector General, Office of Investigations.
VAOIG Hotline
1-800-488-8244
VA Inspector General Hotline
P.O. Box 50410
Washington, DC 20091
[email protected]
FAX: 202-565-7936
North Western Field Office
Northern California
• San Francisco
• Fresno
Northern Nevada
• Reno
Oregon
Washington State
Idaho
Montana
Western Field Office
Southern California
• Los Angeles
• San Diego
• Bakersfield
Arizona
New Mexico
Sothern Nevada
• Las Vegas
Utah
Special Agent in Charge
Michael Seitler
(510) 637-6360
Asst. Special Agent in Charge
Lisa Mantione
310-268-4269
Donald Pepin
UNITED STATES ATTORNEY'S OFFICE
Western District of Washington
November 20, 2009
CAMANO ISLAND MAN INDICTED FOR SCHEME TO
STEAL AND SELL DIABETIC SUPPLIES
Former Pharmacy Employee Conspired with Florida Resident
to Sell Stolen Insulin and Test Strips
VA OIG Investigation
Los Angeles VAMC Pharmacy Determined:
• Incoming orders of test strips outpaced demand
• Test strips had unique lot numbers
•
Unusually high warehouse activity by:
?
VA OIG Investigation
VA OIG Investigation
VA OIG Investigation
Above Suspicion
Doctor of Pharmacy
Supervisor
Always volunteered for overtime
Had private office
Had all access - trusted
VA OIG Investigation
Suspicious
Supervisor - Not scrutinized
Always volunteered for overtime
– why? Money problems? - opportunity
Had private office
- Out of sight
Had all access – trusted
Had no job duties in the warehouse
- History of crimes against the VA
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White-collar crime
Within the field of criminology, white-collar crime
has been defined by Edwin Sutherland as "a
crime committed by a person of respectability
and high social status in the course of his
occupation" (1949).
Think about it…Hmmm
Motive
Ability
Opportunity
Opportunity
Opportunity for fraud, bribery, insider trading,
embezzlement, computer crime, identity theft,
and forgery is more available to white-collar
employees.
Think about it…Hmmm
Lost VA Job (Resigned in lieu of termination)
Facing criminal prosecution for thefts from 2005 – 2010:
 Conspiracy - 5 years / $250,000 fine.
 Wire Fraud - 20 years / $250,000 fine.
 Transportation of Stolen Property – 10 years / $250,000
 Receipt of Stolen Property - 10 years / $250,000
Estimated gross sales of $140,000
Fertility treatments
Ounce of Prevention
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Physical Security Controls
Need for access
 Cop on the beat
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Management Controls
Duty to report
 Accountability
 Inventory
 Separation of duties
 Mandatory Witness
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Take Away!
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Call the VA OIG upon suspicion
M–O–A
Don’t circumvent the controls
Don’t tolerate thievery
Thomas Oberhofer
(310) 268 - 4788