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, 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 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 October 1, 1991 - March 31, 1992

[Excerpt] This Semiannual Report covers the period October 1, 1991 through March 31, 1992. During this period, the resources of the Office of lnspector General have been focused on matters of significant and continuing concern within the Department of Labor. The audits and investigations discussed in this report highlight problems and vulnerabilities in such Department of Labor areas as job training program fund management, pension and welfare benefit plans regulation, Occupational Safety and Health Administration management of egregious case settlements and followup, and various departmental management functions. In conjunction with its audit and investigative activities, the Office of Inspector General has continued to comment on the legislative proposals of the Department of Labor. I consider this to be a crucial function because legislative changes potentially have a significant impact upon the efficiency of the Department of Labor. The Office of Inspector General has and will continue to work closely with the Department to obtain legislative remedies to some long-term problems, particularly in the job training program and employee benefit plans areas, which are discussed extensively throughout this report

Semi-Annual Report to Congress for the Period of October 1, 1986 to March 31, 1987

[Excerpt] This semiannual report covers the activities of the Department of Labor\u27s Office of the Inspector General for the period October 1, 1986, through March 31, 1987. During this period, audit initiatives resulted in numerous economy and efficiency findings and recommendations regarding Agency operations: the OIG issued 195 audits of program activities, grants and contracts. Investigative results continued to show an increase during this reporting period: 1,012 investigations were opened, 672 were closed and a total of 2,249 active investigations were pending at the end of March. There were 384 indictments and 423 successful prosecutions during the period. The Office of Labor Racketeering (OLR) continues its strong commitment to the investigation of corruption in employee benefit plans: this area remains its highest investigative priority. During this period, OLR investigations established a predicate for the potential civil recovery of approximately $7.8 million. There were 28 indictments and 30 convictions from October 1986 through March 1987

Semi-Annual Report to Congress for the Period of October 1, 1995 - March 31, 1996

[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

Semi-Annual Report to Congress for the Period of April 1, 1979 to September 30, 1979

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