How Does the Government Investigate and Prosecute Government Fraud Cases?

What Agencies Investigate Fraud Committed Against the Government?

Very often, the first agency that would be involved would be the office of the Inspector General of whichever department or government agency is involved in that program. Many federal agencies have their own internal office of the Inspector General or OIG. They’ll be the  first investigating body looking at the allegations. In DC specifically, it could also involve the Metropolitan Police Department. If it was a federal program, it could involve the FBI or the federal protective service, depending on  what agency was involved. Any of the numerous law enforcement agencies that are present in the DC area could become involved depending upon what type of investigation is conducted. But, nearly always, if it is a federal matter, it will involve the office of the Inspector General.

What Does the Government Need to Prove In These Cases?

Well, the government would need to prove that the individual intended to defraud the government program and intended to unlawfully obtain government benefits. The government would need to prove, for example, that it wasn’t just some innocent clerical error but that the individual intended to receive benefits even though they knew that they did have the lawful right to receive those benefits. In other words, for example, if someone is charged with unemployment benefits fraud, the government would have to prove  that person actually intended to receive those benefits, had actually taken the time to apply for them, and taken the necessary steps to receive them.  They must prove that there wasn’t any kind of error on the individual’s part about how they were going to receive them or  whether they were entitled to them. Typically, the government is going to have to show that the individual knew that they shouldn’t receive the benefits but purposely took actions to receive the benefits.  They don’t have to show, it’s important to note, that the attempt to obtain those benefits was successful. Attempting to defraud is just as unlawful as successfully defrauding.

What Evidence is Typically Used in Prosecuting Government Fraud Cases?

Fraud cases typically involve a large amount of documentary evidence. There will be applications or bids that will be involved because we’re talking about a government benefit or a government program. As you can imagine, every government program involves lots and lots of paperwork.  In a fraud case, we can expect to see that the government has obtained all of the documentation that was filed and submitted by the defendant.  Very often, through subpoena,  bank records and business records from the defendants are obtained. In certain cases, they may actually attempt to get phone records or text message records if those are applicable. They may also go and try to find witnesses who can establish that the defendant did partake in the fraud and knowingly attempted to obtain those benefits unlawfully.

Have You Seen Any Recent Trends in the Prosecution of Government Fraud Programs?

I have. In the past couple of years, I have seen  many more prosecutions. It seems to be trending in the direction of more prosecutions for fraud in government programs. I guess the way to put it is they’re really cracking down on it.  It’s become a very hot button issue in government fraud.  It probably started with the great recession, when basically budgets ran dry and they needed to crack down and see if they could find areas of fraud. So, the government has really devoted a lot of resources into this area.

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