• Service: Advisory, Risk Consulting, Forensic
  • Industry: Diversified Industrials, High Growth Markets, Financial Services, Healthcare & Life Sciences
  • Type: Business and industry issue
  • Date: 11/1/2011

Falsifying Government Claims and Insider Trading 

The U.S. economic crisis that began in 2007 through 2008 has led to unprecedented amounts of federal spending, most notably the U.S. Troubled Asset Relief Program (TARP) and other economic stimulus programs enacted in late 2008 and 2009. It has also made scrutiny of potential government fraud, waste and abuse a mantra of the federal regulatory and law enforcement community. The financial crisis has spawned new regulations and helped federal enforcement in the U.S. American Recovery and Reinvestment Act (ARRA, or Recovery Act) and the U.S. Fraud Enforcement and Recovery Act of 2009 (FERA). With the financial crisis, the authorization of hundreds of billions of dollars in new federal funding, and a desire to strengthen regulatory and oversight controls, has put fraud, waste and abuse on center stage.
In this article appearing in the 2011 November/December issue of Fraud Magazine, Richard H. Girgenti, KPMG LLP’s Forensic Services leader, discusses how fraudsters are still skittering out of the woodwork to get their share of U.S. stimulus money. However, the federal government is hitting back vigorously. Here is how to protect your organizations and clients from government claim fraud and insider trading.