[Excerpt] I am pleased to submit this Semiannual Report to Congress, which highlights the most significant activities and accomplishments of the U.S. Department of Labor, Office of Inspector General (DOL-OIG), for the six-month period ending September 30, 2009. During this reporting period, our investigative work led to 214 indictments, 221 convictions, and 123.1millioninmonetaryaccomplishments.Inaddition,weissued22auditandotherreports.OIGauditsandinvestigationscontinuetoassesstheeffectiveness,efficiency,economy,andintegrityofDOLâsprogramsandoperations.Wealsocontinuetoinvestigatelaborracketeeringand/ororganizedcrimeinfluenceagainstunions,employeebenefitplans,andworkers.Fromanauditperspective,theOIGishighlyengagedinensuringtheintegrityofDOLactivitiesrelatedtotheAmericanRecoveryandReinvestmentActof2009(RecoveryAct)funding.Duringthisreportingperiod,weissuedfivereportstothatend.AmongourfindingsarethatDOLimplementedproceduresfortheaccountingofRecoveryActfinancialactivity,actedquicklytoimplementthepremiumâassistanceprovisionsforworkerswhotemporarilymaintaintheirhealthinsuranceatgroupratesafterlosingtheirjobs,andeffectivelyimplementedthetemporaryprogramforadditionalunemploymentcompensationforeligiblerecipients.Wealsoidentifiedareasforimprovementrelatedtofinancialandperformancereportingandprogrammaticcoordinationwithstates.AnauditfoundshortcomingswithDOLâsnewiCertsystem,whichisdesignedtoidentifyinaccuraciesinHâ1Blaborconditionapplications(LCAs)forforeignworkers.Wefoundthat,becauseofmissingelectronicchecks,manualreviewsoftheLCAsbyanalystsarenecessary.However,increasesinthevolumeofapplicationsmayresultinanalystsnotbeingabletoperforma100percentreview.ThisincreasestheriskofLCAsbeingimproperlycertified.OurauditsalsocontinuetorevealthatsomeJobCorpscentersdonotcomplywithrequirementsforreportingperformanceforstudentattendanceandaccountability.Wealsofoundthat,atthreecenters,acontractorhadnotensuredcompliancewithprocedurestoaddressstudentmisconduct.AnauditofthehandlingofinjuredFederalemployeesâreemploymentstatusattwoFederalworkersâcompensationdistrictofficesfoundthattheDepartmentdidnotensurethatconsistentinterventionactionsweretakentowardremovingcasesfromtheperiodicroll.ThisincreasedtheriskofclaimantscontinuingtoreceivefullFederalEmployeeâsCompensationActbenefitsaftertheywereabletoreturntoworkoraftertheircompensationcouldhavebeenreduced.Ourinvestigationscontinuetocombatorganizedcrimeand/orlaborracketeeringinvolvingthemoniesinunionâsponsoredbenefitplans,internalunioncorruption,andlaborâmanagementrelations.AmajorOIGinvestigationdisclosedmorethan30yearsoforganizedcrimecontroloftheInternationalLongshoremenâsAssociationLocal1235,whichrepresentsportworkersinNewJersey.Inanotherinvestigation,thebusinessmanagerfortheElectricalWorkersLocalUnionNo.3,whowasaformerNewYorkStateassemblyman,wassentencedto10yearsâimprisonmentonracketeering,bankfraud,andfalsestatementchargesinvolvinganumberofschemescarriedoutforpersonalgain.OIGinvestigationsalsoidentifiedvulnerabilitiesandfraudinDOLprograms,suchastheforeignlaborcertification(FLC)program.OneOIGinvestigationledtotherecentsentencingofViktarKrusandhiscoâconspiratorstovariousperiodsofincarcerationforfraudulentlyobtainingvisasformorethan3,800foreignnationalsanddefraudingthegovernmentof7.4 million in payroll taxes. Because of our investigative expertise, the OIG is a member of the International Organized Crime (IOC) strategy headed by the U.S. Attorney General. The IOC is committed to combating crime by international organized groups.
Finally, I would like to express my sincere gratitude to former DOL Inspector General Gordon S. Heddell, who is now serving as the Inspector General at the U.S. Department of Defense. During his leadership of more than eight years, the DOL-OIG consistently achieved significant results similar to those presented in this report. As Acting Inspector General, I look forward to continuing to work with the Secretary of Labor and her management team in ensuring the effectiveness of DOL in delivering services and protecting the rights and benefits of American workers and retirees
[Excerpt] I am pleased to submit this Semiannual Report to the Department and the Congress, which highlights the most significant activities and accomplishments of the U.S. Department of Labor (DOL) Office of Inspector General (OIG) for the six-month period ending September 30, 2014. The OIG remains committed to promoting the integrity, effectiveness, and efficiency of DOLâs programs and operations.
In addition, our investigations continue to combat labor racketeering and organized crime in internal union affairs, employee benefit plans, and labor-management relations.
During this reporting period, the OIG issued 19 audit and other reports in which we recommended that 5.1millioninfundsbeputtobetteruse.Amongourmanysignificantfindings,wereportedthefollowing:TheEmployeeBenefitsSecurityAdministrationhasnotprovidedtheguidanceandoversightneededtoadequatelyprotectmorethan1 trillion of plan assets invested in complex trust arrangements and hard-to-value assets held and certified by custodians. The Mine Safety and Health Administration lacked a unified timeliness standard for its laboratories, covering the entire cycle time from collection of samples by mine inspectors to the reporting of results, for tests of underground mine air, gas, and dust samples that are critical to ensuring mine safety and health. Approximately 900,000ofJobCorpsfundsweremisusedorwastedbecausetheagencylackedbasicinternalcontrolsoverprepaiddebitcardsandcentrallybilledgovernmenttravelcardsusedtopaystudenttravelexpenses.TheDepartmentâsfinancialmanagementcontinuityplansdidnotincludeafullydevelopedplanforanacceptablerecoveryorreconstitutionoffinancialdataafteradisruptionorfailure.TheOIGâsinvestigativeworkalsoyieldedimpressiveresults,withatotalof253indictments,249convictions,and41.3 million in monetary accomplishments. Highlights include the following: Two Chicago-area women were sentenced to 6 years and 4 years in prison and ordered to pay more than 4.8millionand4.6 million, respectively, in restitution. This one of the largest fictitious employer UI fraud schemes ever prosecuted in the U.S. A Texas psychologist was sentenced to 3 years in prison and ordered to pay more than 1.8millioninrestitutiontotheOfficeofWorkersâCompensationProgramsfordefraudingtheFederalEmployeesâCompensationActprogram.Achiropractorandhiswifeweresentencedto8yearsand2yearsinprison,respectively,andorderedtopaymorethan1.4 million in restitution to the victims of a health care fraud scheme. The wife of a Colombo La Cosa Nostra Crime Family associate was sentenced to 4 yearsâ probation and ordered to pay $40,000 in restitution after pleading guilty to embezzling from a union benefit plan.
These are some of the examples of the exceptional work done by our dedicated OIG staff. I would like to express my gratitude to them for their significant achievements during this reporting period.
We are currently working on several important audits for fiscal year 2015, including reviews of Job Corps center safety and the federal Black Lung program. For more details, I invite you to review our audit work plan, which can be accessed at www.oig.dol.gov/workplan/FY2015.pdf.
I look forward to continuing to work constructively with the Department and the Congress on our shared goals of identifying improvements to DOL programs and operations and protecting the rights and benefits of workers and retirees
[Excerpt] I am pleased to submit this Semiannual Report to Congress, which highlights the most significant activities and accomplishments of the U.S. Department of Labor (DOL), Office of Inspector General (OIG) for the six-month period ending September 30, 2011. During this reporting period, our investigative work led to 226 indictments, 172 convictions, and 50.9millioninmonetaryaccomplishments.Inaddition,weissued40auditandotherreportswhich,amongotherthings,recommendedthat677.1 million in funds be put to better use.
OIG audits and investigations continue to assess the effectiveness, efficiency, economy, and integrity of DOLâs programs and operations. We also continue to investigate the influence of labor racketeering and/or organized crime with respect to internal union affairs, employee benefit plans, and labor-management relations.
In the employment and training area, an OIG audit of Recovery Act funds spent on green jobs found that with 61 percent of the training grant periods having elapsed, grantees have achieved just 10 percent of their job placement goals. We recommended that the Employment and Training Administration (ETA) evaluate the program and obtain estimates of the need for the remaining 327millionofunspentgrantfunds.AnotherOIGauditfoundthatETAneedstobetterensurethattheJobCorpsâoutreachandadmissionsserviceprovidersenrollonlyeligiblestudents.IfETAâsrecentandplannedchangestotheJobCorpsâstudentenrollmentprocessareeffectivelyimplemented,thenweestimatethatnearly165 million in funds could be put to better use by ensuring only eligible students are enrolled. Another audit estimated that up to 124millioninWorkforceInvestmentActfundingwasspentontrainingparticipantswhodidnotobtaintrainingârelatedemployment,orinformationwasinsufficienttomakethedeterminationthattrainingârelatedemploymentwasobtained.AnOIGinvestigationfoundapatternofmisconductinvolvingtheVeteransâEmploymentandTrainingServices(VETS)AssistantSecretaryandtwootherseniorVETSofficials,whichreflectedaconsistentdisregardofFederalprocurementrulesandregulations.TheAssistantSecretaryandhisChiefofStaffresignedfollowingtheissuanceofourreport.OurinvestigationscontinuedtoidentifyvulnerabilitiesandfraudinDOLprograms.Forexample,aninvestigationresultedintwobusinessownersbeingsentencedtomorethanthreeyearsinprisonandorderedtoforfeit2.8 million as a result of their roles in an H-1B visa fraud conspiracy. Another investigation resulted in the owner of a medical practice group being sentenced to serve more than a year in prison and ordered to pay more than 2.5millioninrestitutionforfraudulentbillingsthatweresubmittedtoDOLâsOfficeofWorkersâCompensationPrograms,Medicaid,Medicare,andprivateinsurancecompanies.OIGinvestigationsalsocontinuetocombatlaborracketeeringintheworkplace.Forexample,onemajorinvestigationresultedinthesentencingoftheformersecretaryâtreasureroftheDistrictCouncilofCarpentersto11yearsinprisonandrestitutionof5.7 million for receiving prohibited payments from contractors to allow the underpayment of contributions to the union-sponsored benefit plans, resulting in financial harm to union members. Another OIG investigation led to a former Plumbers Union worker being sentenced to three and one-half years in prison, among other things, after pleading guilty to charges of theft from an employee benefit plan and embezzlement of approximately $412,000 in union dues.
The OIG remains committed to promoting the integrity, effectiveness, and efficiency of DOL. I would like to express my gratitude to the professional and dedicated OIG staff for their significant achievements during this reporting period. I look forward to continuing to work with the Department to ensure the integrity of programs and that the rights and benefits of worker and retirees are protected
[Excerpt] I am pleased to submit this Semiannual Report to the Congress, which highlights the significant activities and accomplishments of the Office of Inspector General (OIG) for the six-month period ending September 30, 2006. During this reporting period, our investigative work led to 295 indictments, 260 convictions, and over 76millioninmonetaryaccomplishments.Inaddition,weissued66auditreportsandquestioned90.2 million in costs.
During this reporting period, the OIG continued to provide audit and investigative oversight of the Department of Laborâs (DOLâs) response to Hurricanes Katrina and Rita. We issued six management letters related to this effort. One of the letters identified individuals who had received disaster unemployment assistance (DUA) from one state, while also receiving DUA or state unemployment compensation from another state. In addition, an OIG investigation led to the indictment of a disaster-reconstruction company owner who had allegedly neglected to pay approximately 1.4millioninemployeetaxesowedtotheFederalandstategovernments.OIGauditsincludedsignificantrecommendationstoaddressvulnerabilitiesidentifiedinDOLprogramsandoperations.Forexample,weissuedaperformanceauditthatdeterminedthatDOLâscoalminehazardousconditioncomplaintprocessneededimprovement.WealsoconductedseveralauditsassessingtheadequacyoftheDepartmentâsinformationsecurityprogramandidentifiedchallengesintheareasofaccesscontrolsandprotectionoverpersonallyidentifiableinformation.OurinvestigationscontinuetocombatlaborracketeeringintheworkplaceandfraudinvolvingDOLprograms.OneparticularinvestigationresultedinseveralformerhighârankingofficialsofLaborersâInternationalUnionofNorthAmericaLocal91intheStateofNewYorkeitherpleadingguiltyorbeingsentencedforconspiringtocommitviolationsoftheHobbsAct.AnothersignificantcaseinvolvedRalphsGroceryCompany.RalphspledguiltytoseveralfelonycountsrelatedtochargesthatitillegallyrehiredlockedâoutworkersduringthesupermarketlabordisputeinSouthernCaliforniamorethantwoyearsago.InJune2006,thecompanyagreedtopay70 million in fines and restitution.
Finally, recognizing the need to collaboratively combat document and benefit fraud, the OIG joined with the Departments of Homeland Security, Justice, State, and other agencies to form task forces in 10 major cities. Led by the U.S. Immigration and Customs Enforcement, the task forces have been highly effective in targeting criminal organizations and ineligible beneficiaries engaged in this type of fraud. In one case, an investigation found that the owner of a labor leasing company used counterfeit labor certification forms to apply for at least 250 green cards. The owner of the company pled guilty to charges and faces 37 to 46 monthsâ incarceration.
The OIG remains committed to promoting the economy, integrity, effectiveness, and efficiency of DOL programs and detecting waste, fraud, and abuse against those programs. I would like to express my sincere appreciation to a professional and dedicated OIG staff for their significant achievements during this reporting period
[Excerpt] It is a privilege to transmit this Semiannual Report to the Congress covering the period October 1, 2002, through March 31, 2003, summarizing the significant audit and investigative activities of the Office of Inspector General (OIG), U.S. Department of Labor (DOL). Moreover, I am pleased to introduce a new format for our report that makes use of advances in information technology and moves the OIG forward in the e-government environment. Readers will now receive a âHighlightsâ summary that emphasizes key audits and investigations conducted by the OIG. The Highlights contains information on how to visit our website and download the complete report. Our goal is to allow you to review snapshots of our work and quickly access those issues of most interest to you.
Of special note during this reporting period was the inclusion of statutory law enforcement authority for our investigators in the Homeland Security Act of 2002 (P.L. 107-296). This authority enhances our ability to investigate labor racketeering and fraud against pension plans, which has become increasingly important as other Federal law enforcement agencies redirect their resources toward homeland security activities.
Among our significant investigative accomplishments during this period was the indictment of 42 individuals including members and associates of the Genovese and Colombo La Cosa Nostra (LCN) organized crime families and Locals 14 and 15 of the Operating Engineers, for unlawful labor payments as well as other charges. Another investigation led to guilty pleas by associates of the Gambino LCN Family. In total, during this reporting period, our investigative work resulted in 337 indictments, 191 convictions, and over 55.6millioninmonetaryaccomplishments.Fromanauditperspective,weissuedaseriesofreportsduringthisperiodrelatedtotheWorkforceInvestmentAct(WIA)includingyouthtrainingprograms,individualtrainingaccounts,andtheamountofWIAfundingavailabletostates.WehopethesereportsandrecommendationswilloffervaluableinformationastheCongressconsidersWIAreauthorization.WealsoreportedtheresultsofourworkwithrespecttoFloridaâscloseoutofitsjobtraininggrants,whichidentifiedsignificantdiscrepanciesbetweentheState2Ë7sfinancialstatusreportsanditsofficialaccountingrecords.AlsosignificantthisperiodwasourfollowâupauditofoverchargesbytheInternalRevenueServicetotheUnemploymentTrustFundthattotaled174 million for fiscal years 1999â2002. This targeted work, as well as other audit work, identified nearly $184 million in questioned costs.
I am proud of the work of all OIG employees and their continued commitment to serving American workers and taxpayers. My staff and I look forward to continuing to work constructively with the Secretary and the DOL team to further our common goal of ensuring the effectiveness, efficiency, and integrity of the programs that serve and protect the rights and benefits of American workers and retirees
[Excerpt] This semiannual report is organized into three major sections. Part 1 is divided into Department of Labor program areas and provides information about Office of Inspector General (OIG) activities and views concerning major issues and problem areas related to these programs. Part 2 is organized by OIG Office and provides information concerning office initiatives and accomplishments. Appendices to the report contain descriptions of major DOL program areas covered in the report, a glossary of terms, and data related to OIG activities
[Exerpt] This Semiannua lReport, covering the period from April I through September 30, 1994, documents many significant accomplishments of the men and women of the U.S. Department of Labor\u27s (DOL) Office of Inspector General (OIG). Particularly noteworthy is the OIG nation wide audit of the Targeted Jobs Tax Credit Program; an extensive investigation of corruption involving Mine Safety and Health inspectors; the conclusion of an investigation into a multi-million dollar health insurance scam;and the OIG\u27s audit on the impact of pension plan terminations on participants.
From a legislative perspective, two areas critical to the mission of the OIG were addressed in this Congress. First, largely as a result of the OIG actively working with the Congress and the Department, legislation to permanently amend the Federal Employees\u27 Compensation Act (FECA) and its related criminal statutes was introduced by Senator Harkin of Iowa and enacted. The OIG believes that this change in the law will greatly deter fraud and abuse of the FECA program. Second, the Federal Acquisition Streamlining Act, introduced by Senator Glenn of Ohio,was passed by Congress. This comprehensive procurement reform measure contains provisions that codify and clarify what costs contractors may submit to the Government and provides all Federal agencies with the same authority to assess penalties against abusers. OIG audits have repeatedly identified abuses and, in May of this year, I testified before the Senate Committee on Appropriations, Subcommittee on Labor that I believed this to be a widespread Government problem. The OIG is of the opinion that this measure will go along way towards deterring contractors from submitting improper charges to the Government.
During this period, in keeping with the Government wide streamlining and reinvention principles of the National Performance Review,the OIG initiated a comprehensive review of its intemal organizational structure in order to consolidate functions and to the extent possible, eliminate supervisory and senior management positions, especially within headquarters. Through consolidation of OIG management responsibilities, 3 Senior Executive Service (SES)and 10 GS-15 positions have been eliminated, for a reduction of one-third of the headquarters SES and GS-15 positions. The OIG intends to continue to identify and implement further streamlining initiatives
It is an honor to transmit to the Secretary and the Congress the 46th Semiannual Report of the U.S. Department of Labor (DOL) Office of Inspector General (OIG). During the period of April 1 through September 30, 2001, the OIG continued to direct its audit, evaluation, and investigation resources to activities that support its goals of effecting positive change and reducing vulnerabilities in departmental programs and operations, producing a positive return on invested resources, and providing quality services to stakeholders. Our work is intended to assist the Department in its efforts to improve the economic prospects of the unemployed and underemployed; protect the lives, health, and rights of workers; provide appropriate benefits to injured or unemployed workers; and ensure accountability over taxpayer dollars invested in departmental programs.
The work of the OIG during this period resulted in 40millionincoststhatwerequestionedorrecommendedbeputtobetteruse;over35.2 million in investigative recoveries, restitutions, fines, and penalties; 182 indictments; and 109 convictions. Through our oversight work, we provided information to the Department that one of the major programs for providing employment and training services to welfare recipients falls short in placing individuals in lasting unsubsidized employment. We also audited programs that assist workers who lose their jobs because of trade policies to obtain employment at suitable wages. We found that these programs only did so for 34% of the participants we reviewed. In addition, we identified ways that the Department can further protect miners from accidents and ways that the Department can protect its information technology systems from intrusions.
From an investigative perspective, we found that worker benefits programs remain vulnerable to fraud and continued our proactive support of the governmentâs efforts to combat labor racketeering, union corruption, and organized crime activity. Illustrative of our work in this area is the conviction of a former labor union official for his role in a multimillion-dollar fraud scheme involving several Chicago-based union pension plans and a labor organization.
In addition to the work highlighted above, we are continuing to work with the Department to resolve any previously identified management issues or areas of concern. My staff and I look forward to continuing to work constructively with the Secretary and the DOL team to further our common goal of ensuring the effectiveness, efficiency, and integrity of the programs that serve and protect the American workforce
[Excerpt] This Semiannual Report, covering the period October 1, 1995 through March 31, 1996, documents the significant accomplishments of the U.S. Department of Labor (DOL), Office of lnspector General (OIG). During this very important period of change in Government, my office has continued to work extensively with the Department, the Congress, and other Federal Agencies to ensure the integrity and efficiency of DOL programs, to safeguard the taxpayers\u27 investment in these programs, and to ensure that the American worker is served in the most efficient and cost-effective way.
Through our audits, investigations, and evaluations, the OIG has focused attention on: the effectiveness and efficiency of DOL employment and training programs; fraud in the Department\u27s health care and unemployment insurance programs; and criminal labor racketeering activity by traditional and non-traditional organized crime groups. Although we are pleased to see the Department adopt many of our recommendations and make other improvements related to these areas, we will continue to devote significant resources to these areas and we will continue to make recommendations for change to both the Department and to the Congress.
In the past, we have also expressed our concerns over other significant issues within the Department. These include: continued structural weaknesses in the Department\u27s financial management operations and procedures; the OIG\u27s limited access to Unemployment Insurance wage records; and the need to address weaknesses and inefficiencies in the reauthorization of a targeted jobs tax credit program. The OIG remains concerned that legislative and/or administrative changes are necessary with respect to these important issues.
Just as we strive to improve operations at the departmental level, my office continues to seek improvements in the way we do business and how we can maximize our own effectiveness. Accordingly, the OIG has begun to implement a long-range Strategic Plan which meets the requirements of the Government Performance and Results Act and establishes the long-term direction, goals, and priorities of the organization. The OIG Strategic Plan identifies five key accomplishments necessary for full implementation and during this reporting period, teams have been established to further develop and refine three of these accomplishments. The first team has enabled the OIG to identify those significant issues which will be our focus over the next 24 months. The second team is in the process of developing effective performance measures for the OIG, since accurate and informative performance measurements are of vital importance both to the OIG and to effective government in general. The third strategic planning team is assessing present and future information technology requirements to ensure that we accomplish our mission. We hope that our efforts in the strategic planning arena will serve as a valuable resource not only to the OIG but also to the rest of the Department to help plan for the future
During the six-month period covered by this report, the Office of Inspector General (OIG), of the Department of Labor (DOL), conducted a number of significant audits and investigations. The problems disclosed are described in detail in Chapters 2 through 5 of this report. The highlights of OIG\u27s accomplishments for the period appear below