Semi-Annual Report to Congress for the Period of October 1, 2002 to March 31, 2003

[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 “Highlights” 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 $55.6 million in monetary accomplishments. From an audit perspective, we issued a series of reports during this period related to the Workforce Investment Act (WIA) including youth training programs, individual training accounts, and the amount of WIA funding available to states. We hope these reports and recommendations will offer valuable information as the Congress considers WIA reauthorization. We also reported the results of our work with respect to Florida’s closeout of its job training grants, which identified significant discrepancies between the State\u27s financial status reports and its official accounting records. Also significant this period was our follow-up audit of overcharges by the Internal Revenue Service to the Unemployment Trust Fund that totaled$174 million for fiscal years 1999–2002. 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

Semi-Annual Report to Congress for the Period of April 1, 2014 to September 30, 2014

[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 DOL’s 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 $5.1 million in funds be put to better use. Among our many significant findings, we reported the following: The Employee Benefits Security Administration has not provided the guidance and oversight needed to adequately protect more than$1 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 $900,000 of Job Corps funds were misused or wasted because the agency lacked basic internal controls over prepaid debit cards and centrally billed government travel cards used to pay student travel expenses. The Department’s financial management continuity plans did not include a fully developed plan for an acceptable recovery or reconstitution of financial data after a disruption or failure. The OIG’s investigative work also yielded impressive results, with a total of 253 indictments, 249 convictions, and$41.3 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 $4.8 million and$4.6 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 $1.8 million in restitution to the Office of Workers’ Compensation Programs for defrauding the Federal Employees’ Compensation Act program. A chiropractor and his wife were sentenced to 8 years and 2 years in prison, respectively, and ordered to pay more than$1.4 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 years’ 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

Semi-Annual Report to Congress for the Period of April 1, 2009 to September 30, 2009

[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 $123.1 million in monetary accomplishments. In addition, we issued 22 audit and other reports. OIG audits and investigations continue to assess the effectiveness, efficiency, economy, and integrity of DOL’s programs and operations. We also continue to investigate labor racketeering and/or organized crime influence against unions, employee benefit plans, and workers. From an audit perspective, the OIG is highly engaged in ensuring the integrity of DOL activities related to the American Recovery and Reinvestment Act of 2009 (Recovery Act) funding. During this reporting period, we issued five reports to that end. Among our findings are that DOL implemented procedures for the accounting of Recovery Act financial activity, acted quickly to implement the premium-assistance provisions for workers who temporarily maintain their health insurance at group rates after losing their jobs, and effectively implemented the temporary program for additional unemployment compensation for eligible recipients. We also identified areas for improvement related to financial and performance reporting and programmatic coordination with states. An audit found shortcomings with DOL’s new iCert system, which is designed to identify inaccuracies in H-1B labor condition applications (LCAs) for foreign workers. We found that, because of missing electronic checks, manual reviews of the LCAs by analysts are necessary. However, increases in the volume of applications may result in analysts not being able to perform a 100 percent review. This increases the risk of LCAs being improperly certified. Our audits also continue to reveal that some Job Corps centers do not comply with requirements for reporting performance for student attendance and accountability. We also found that, at three centers, a contractor had not ensured compliance with procedures to address student misconduct. An audit of the handling of injured Federal employees’ reemployment status at two Federal workers’ compensation district offices found that the Department did not ensure that consistent intervention actions were taken toward removing cases from the periodic roll. This increased the risk of claimants continuing to receive full Federal Employee’s Compensation Act benefits after they were able to return to work or after their compensation could have been reduced. Our investigations continue to combat organized crime and/or labor racketeering involving the monies in union- sponsored benefit plans, internal union corruption, and labor-management relations. A major OIG investigation disclosed more than 30 years of organized crime control of the International Longshoremen’s Association Local 1235, which represents port workers in New Jersey. In another investigation, the business manager for the Electrical Workers Local Union No. 3, who was a former New York State assemblyman, was sentenced to 10 years’ imprisonment on racketeering, bank fraud, and false statement charges involving a number of schemes carried out for personal gain. OIG investigations also identified vulnerabilities and fraud in DOL programs, such as the foreign labor certification (FLC) program. One OIG investigation led to the recent sentencing of Viktar Krus and his co-conspirators to various periods of incarceration for fraudulently obtaining visas for more than 3,800 foreign nationals and defrauding the government of$7.4 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

Semi-Annual Report to Congress for the Period of April 1, 2011 to September 30, 2011

[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 $50.9 million in monetary accomplishments. In addition, we issued 40 audit and other reports which, among other things, recommended that$677.1 million in funds be put to better use. OIG audits and investigations continue to assess the effectiveness, efficiency, economy, and integrity of DOL’s 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 $327 million of unspent grant funds. Another OIG audit found that ETA needs to better ensure that the Job Corps’ outreach and admissions service providers enroll only eligible students. If ETA’s recent and planned changes to the Job Corps’ student enrollment process are effectively implemented, then we estimate that nearly$165 million in funds could be put to better use by ensuring only eligible students are enrolled. Another audit estimated that up to $124 million in Workforce Investment Act funding was spent on training participants who did not obtain training-related employment, or information was insufficient to make the determination that training-related employment was obtained. An OIG investigation found a pattern of misconduct involving the Veterans’ Employment and Training Services (VETS) Assistant Secretary and two other senior VETS officials, which reflected a consistent disregard of Federal procurement rules and regulations. The Assistant Secretary and his Chief of Staff resigned following the issuance of our report. Our investigations continued to identify vulnerabilities and fraud in DOL programs. For example, an investigation resulted in two business owners being sentenced to more than three years in prison and ordered to forfeit$2.8 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 $2.5 million in restitution for fraudulent billings that were submitted to DOL’s Office of Workers’ Compensation Programs, Medicaid, Medicare, and private insurance companies. OIG investigations also continue to combat labor racketeering in the workplace. For example, one major investigation resulted in the sentencing of the former secretary-treasurer of the District Council of Carpenters to 11 years in prison and restitution of$5.7 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

Semi-Annual Report to Congress for the Period of April 1, 2006 to September 30, 2006

[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 $76 million in monetary accomplishments. In addition, we issued 66 audit reports and questioned$90.2 million in costs. During this reporting period, the OIG continued to provide audit and investigative oversight of the Department of Labor’s (DOL’s) 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 $1.4 million in employee taxes owed to the Federal and state governments. OIG audits included significant recommendations to address vulnerabilities identified in DOL programs and operations. For example, we issued a performance audit that determined that DOL’s coal mine hazardous condition complaint process needed improvement. We also conducted several audits assessing the adequacy of the Department’s information security program and identified challenges in the areas of access controls and protection over personally identifiable information. Our investigations continue to combat labor racketeering in the workplace and fraud involving DOL programs. One particular investigation resulted in several former high-ranking officials of Laborers’ International Union of North America Local 91 in the State of New York either pleading guilty or being sentenced for conspiring to commit violations of the Hobbs Act. Another significant case involved Ralphs Grocery Company. Ralphs pled guilty to several felony counts related to charges that it illegally rehired locked-out workers during the supermarket labor dispute in Southern California more than two years ago. In June 2006, the company agreed to pay$70 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 months’ 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

Semi-Annual Report to Congress for the Period of October 1, 1980 to March 31, 1981

[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

Semi-Annual Report to Congress for the Period of April 1, 1994 to September 30, 1994

[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

Semi-Annual Report to Congress for the Period of April 1, 2001 to September 30, 2001

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 $40 million in costs that were questioned or recommended be put to better use; over$35.2 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 government’s 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

Semi-Annual Report to Congress for the Period of October 1, 1999 to March 31, 2000

This Semiannual Report of the Office of Inspector General (OIG) details some of our most significant accomplishments for the period October 1, 1999–March 31, 2000. During this period, the OIG continued to focus our audit and investigative resources on activities that support our strategic plan goals. These goals reflect our vision of providing the Department and Congress with quality information, recommendations, and technical assistance. OIG audits, investigations, and evaluations conducted during this period have resulted in $29.7 million in questioned costs;$4.3 million in recommendations that funds be put to better use; 173 indictments; and 126 convictions representing nearly $39 million in investigative recoveries, restitutions, fines, or penalties. In examples that illustrate some of our accomplishments, the OIG has: audited the Workforce Investment Act’s One-Stop systems in seven states and found that the infrastructure required for the comprehensive One-Stop system is still being developed; therefore, a strong commitment is needed by Federal, state, and local partners in order to meet the July 1, 2000, implementation date; audited the Occupational Safety and Health Act coverage of public employees and found that 17 of the 29 states reviewed lacked some important elements of an adequate safety and health program for state and local government workers, or did not extend workplace safety and health coverage to their state and local government workers; conducted audits of a number of grants and contracts and identified questioned costs due to mismanagement or lack of compliance with financial management requirements. For example, we questioned$15.8 million in costs in our audit of the Puerto Rico Department of Labor and Human Resources and nearly $6 million in our audit of the National Senior Citizens Education and Research Center; followed up on a prior audit of State Employment Security Agencies’ success in identifying hidden (or unreported) wages and collecting related tax contributions. Because of this audit, 23 states recovered more than$2.5 million of Unemployment Insurance tax contributions during calendar year 1999; issued an evaluation that recommended additional internal controls and monitoring to reduce the Black Lung Disability Program’s vulnerability to fraud and excessive costs in the areas of blood gas tests and home oxygen; completed 137 worker benefits investigations resulting in almost $14.3 million in monetary accomplishments and 75 convictions; combated labor racketeering in unions and the workplace in the areas of employee benefit plans, labor-management relations, and internal union affairs. Our criminal investigations have yielded numerous indictments and convictions. In one investigation, for example, two investment bankers were sentenced and fined for their role in the loss of$9.3 million from a union pension fund; and called attention to legislative issues impacting the Department in the areas of program evaluation, workers’ compensation, information technology and security, occupational safety and health, and law enforcement authority. We have augmented our traditional role by working collaboratively and constructively with the Department to identify, early in the process, possible impediments that may affect DOL’s success in administering its programs and in serving the American public. Illustrative of this is the technical assistance we have been providing to the Bureau of International Labor Affairs to help develop management controls over its substantial new grant programs. In addition, we continue to assist the Department in the Government Performance and Results Act process to ensure that DOL’s performance goals are outcome based and directed toward measuring performance, and to assist the Employment and Training Administration in its efforts to implement the One-Stop delivery system as required under the Workforce Investment Act. I would like to commend all the OIG staff members for their diligent work and commitment toward effecting positive change, reducing vulnerabilities, and contributing to the achievement of DOL strategic goals. The OIG looks forward to continuing to work effectively with the Secretary, management, and departmental staff at all levels in our common goal of ensuring the effectiveness, efficiency, and integrity of the programs that serve and protect American workers and retirees

Semi-Annual Report to Congress for the Period of April 1, 1992 to September 30, 1992

[Excerpt] This Semiannual Report, covering the period April 1 - September 30, 1992, marks the close of a very productive fiscal year for the Office of Inspector General (OIG). During Fiscal Year 1992, the OIG issued 500 audits of departmental programs, reporting questioned costs of $86.3 million. An additional$42.2 million was recommended by the OIG to be put to better use. During this period some $70.2 million of costs were disallowed by the Department as a result of OIG audit recommendations. Comparable achievements were attained through the OIG\u27s criminal investigations. Law enforcement activities produced 290 successful criminal prosecutions and 333 indictments; and generated almost$58 million in fines, penalties, restitutions, settlements, forfeitures, and cost efficiencies. Among the OIG\u27s many noteworthy accomplishments in the past fiscal year is the major role the OIG played in support of the enactment of the Job Training Partnership Act amendments. The passage of these amendments demonstrates the positive results that can be achieved through the input and analysis provided by the OIG to the Congress. This new law, complemented with a comprehensive regulatory program, is designed to address many of the systemic weaknesses documented by OIG audits and investigations over the past several years. The significant accomplishments achieved by the OIG in identifying and combating fraudulent, employer-sponsored health insurance plan schemes are also worthy of special note. During this reporting period, I continued to appear before congressional committees to provide testimony on matters related to Departmental programs and operations. These committees have always been receptive to my remarks and recommendations. Their interest in OIG activities is greatly appreciated. I remain greatly concerned that the Department has not selected a Chief Financial Officer despite the critical need to fill this position, as demonstrated by the findings of the OIG\u27s numerous financial management audits. In addition to my responsibilities as Inspector General, I am honored to have been recently appointed to serve as Vice Chair of the President\u27s Council on Integrity and Efficiency (PCIE). The PCIE was established by the President to coordinate and enhance efforts to promote integrity and efficiency throughout Government. I have been especially granfied to have the opportunity to work closely with Frank Hodsoll, Deputy Director for Management of the Office of Management and Budget, and my fellow Inspectors General in this important activity