Closed Cases

Case ID

Description

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2010-021
The OIG received information that the executive director in an AmeriCorps program in Rhode Island submitted false monthly financial reports to obtain Federal program funds. Our investigation determined the executive director falsely reported the program had paid AmeriCorps members’ health insurance premiums so the program could obtain $135,000 in Federal program funds.
The matter was referred to DOJ for criminal prosecution. It was declined based on the low dollar amount. The matter was referred to Corporation management and it was determined no action would be taken.
2010-027
The OIG received information that an AmeriCorps program in Georgia was failing to properly document the eligibility and background checks of its’ AmeriCorps members. The investigations disclosed the files for AmeriCorps members lacked proper eligibility documents and documentation of National Sex Offender Public Registry or State criminal registry checks being conducted prior to the members’ enrollment date. The loss to the Government was $59,000 in education awards made to ineligible members.
The matter was referred to Corporation management, which agreed with our findings and issued a demand payment letter to the program to return more than $23,000 in grant funds.
2011-030 The OIG received information that volunteers in a Senior Companion Program in Tennessee were performing services not authorized by the grant. Our investigation determined volunteers performed more than 600 hours of unauthorized service in the form of administrative duties for the program, which resulted in a $1,780 loss to the Government.
The matter was referred to Corporation management, which concurred with our findings and issued a demand payment letter to the program to repay the grant funds.
2012-009
The OIG received information that AmeriCorps members in Illinois were using their education awards to purchase computers and other items from a community college bookstore. Our investigation determined that AmeriCorps members were enrolling in non-credit continuing education classes and using their education awards to purchase computers. We determined there was no wrongdoing as the provisions of 45 CFR 2528.10 allow such purchases as long as the members are enrolled at an institution of higher education.
2011-007
The OIG received a hotline complaint that officials of a RSVP program in Louisiana were submitting false timesheets by indicating they had completed a full day of work.
Our investigation disclosed the executive director of the program directed an employee to record on their timesheets that they had worked eight hours when, in fact, they had not. This action resulted in over $3,000 loss to the Government.
The matter was referred to Corporation management, which concurred with our findings and issued a demand payment letter to the program to repay the grant funds.
2011-006
The OIG received a hotline complaint alleging misconduct by program officials of a VISTA program in West Virginia. Our investigation disclosed there were no violations of law or regulations, but did note some financial irregularities. Our review of the grant close-out financial records disclosed the program expended 100 percent of its Federal program funds, including living allowances for eight full-time AmeriCorps VISTA members. Further inquiry disclosed that not all of the initial VISTA positions were filled and that some members did not complete their term of service.
Further investigation disclosed that program officials had submitted a request for an amendment to add additional VISTA members under the summer associate program. The request was approved by a Corporation program director and the excess funds were used to fund the additional VISTA members.
2010-032
The OIG received information that a program director of an AmeriCorps program in Michigan had inflated AmeriCorps members’ service hours. We also received information that the program director was allowing AmeriCorps members to provide service outside of the grant provisions and those hours were being counted as qualifying service hours.
Our investigation disclosed evidence that, between August 2008 and July 2010, the program director inflated AmeriCorps members’ service hours and approved service hours for activities that were not in accordance with grant provisions.
The results of the investigation were submitted to Corporation management for action. In May 2011, it reported that it had reviewed our findings and agreed the program had submitted inflated member service hours or had credited hours for service outside the scope of the grant. The Corporation issued a demand payment letter to the program to return more than $19,000 in grant funds.
2011-021
This investigation was initiated based on a proactive review of the use of the Government travel card by Corporation employees. Investigation disclosed an employee misused their card for personal use during periods when they were not on official travel. We identified 58 questionable transactions totaling more than $5,500. The results of the investigation were provided to Corporation management. As a result of our findings, the employee resigned.
2011-018
The OIG received an allegation that program officials at an AmeriCorps program in Oregon were double billing staff salaries to both AmeriCorps State and National grants. The OIG reviewed the program’s financial records and found no irregularities in their accounting for staff salaries.
2010-020

The OIG received information that a former VISTA member enrolled into the program using another person’s identity. Our investigation found that the VISTA member did steal another person’s identity which resulted in the embezzlement of $69,277.07 in Federal funds. Further investigation disclosed that the VISTA Program Director became aware of the VISTA member’s false identity and immigration status, after the fact, and allowed the member to continue to fraudulently receive Federal funds, serve in the program, and be promoted to supervisor.

As a result of the investigation, the former VISTA member plead guilty and was sentenced to six months of confinement for one count of Federal government program fraud and one count of theft of public monies and also ordered to pay restitution totaling $69,277.07.

Furthermore, Corporation debarred the former VISTA member from participating in Federal procurement and non-procurement programs for three years and the VISTA Program Director for two year.
2010-034

The OIG received an anonymous complaint alleging that the program director of a Senior Corps Program in Missouri was using grant funds to make personal purchases.

The investigation disclosed evidence that $3,412.98 in Federal grant funds were used for unauthorized purchases and expenses. The matter was referred to Corporation management and it was determined that the program director will repay the funds.

2011-002

The OIG received information from an anonymous caller alleging that a company’s website contained endorsements by Corporation employees. The caller further stated that the company receives contracts from the Corporation for AmeriCorps and VISTA programs.

After investigation, it was determined that the Corporation employees misused their positions by allowing their names and positions to be used as an endorsement for a company doing business with the Corporation.

The matter was referred to Corporation management. Both Corporation employees received a memorandum of counseling and were required to re-educate themselves on ethics policies.

2011-014

The OIG received information that a Corporation employee may have been employed by a contractor doing business with the Corporation. The investigation found no evidence of wrongdoing.

2009-028

An investigation disclosed that an AmeriCorps program in California had misused their AmeriCorps grant funds. The matter was referred to Corporation management and it was determined the program would repay $258,894.79 for the misapplication of grant funds.

The investigation also revealed evidence that the program officials awarded ineligible AmeriCorps members pro-rated education awards for compelling personnel circumstances, a loss to the Government of $65,708.37. The documents and lack of documents provided by the program failed to meet the requirements of compelling personal circumstances.

The matter was referred to Corporation management, which determined that 17 member files did not contain adequate documentation to support the pro-rated awards, totaling $56,285. The Corporation issued a demand for payment letter in the amount of $38,800 and the remained was placed into a potential debt.

2011-022

The OIG received information that a grantee may be misusing AmeriCorps members by having them perform service on religious and advocacy related activities.

Investigation disclosed evidence that members assigned to the grantee were producing and posting recruitment postings on websites not approved by the grant. The investigation also disclosed evidence that three AmeriCorps members were serving in positions that were not authorized by the grant, which resulted in the improper distribution of living allowances and education awards. The actions resulted in the loss of $129,850.95 in Federal funds.

The matter was referred to Corporation management, who reported that corrective actions have been implemented by the program to be in compliance with the grant provisions.

2011-010

The OIG received information that a VISTA project in Florida has not paid to the Corporation its cost share portion of the grant in the last three years and owes over $100,000. A compliance monitoring visit was conducted and the program was found to be “Not in Full Compliance” with federal regulations regarding the management and oversight of its VISTA project.

The OIG was informed that the VISTA project has made $69,000 in cost share payments of the $100,000 owed and that the program officer is following up with the program on the remaining funds owed to the Corporation.

2011-012
The OIG received information that a Corporation employee sent an email with an attachment to several Corporation and OIG employees. The attachment included sensitive personal information. It was determined that the information provided could have been used to steal another employee’s commuter benefits. We later received notification that the employee was verbally counseled for their actions.

2010-031

The OIG received information that an AmeriCorps grantee in Puerto Rico received a letter and a check claiming the grantee had been awarded another grant from the Corporation under the American Recovery and Reinvestment Act (ARRA).

It was determined the letter, which purported to be from a legitimate company, was a scheme to steal $2,650 from the grantee.

We provided the information of the fraudulent scheme to the Federal Trade Commission’s Consumer Response Center. We also posted a fraud alert notice on the OIG website to alert other Corporation grantees of the potential risk.

2010-030

An investigation, based on information provided by the OIG Audit Section, disclosed that a program officer of an AmeriCorps program in Virginia allowed AmeriCorps members to enter their timesheet data and the program officer certified the hours without verification. The OIG audit report found that the service hours for 25 of the 33 enrolled AmeriCorps members had been inflated. It was alsodetermined that the program coordinator did not maintain proper citizenship documentation to verify member eligibility and that compelling personal circumstances for some members who exited the AmeriCorps program for some members were not properly documented. As a result of the audit findings, more than $244,000 in costs were questioned.

This matter was referred to DOJ for criminal prosecution. It was declined on the grounds that the program coordinator did not personally benefit from inflating the members’ service hours and that the Corporation management could recoup the questioned costs through the audit resolution process.

2010-029
The OIG received information that Corporation employees may be misusing their government-issued purchase cards. Our investigation found no evidence of any misuse of purchase cards.

2010-026
An investigation disclosed a Corporation employee misused their position and government issued equipment. The matter was referred to Corporation management and the employee was counseled on the violation and suspended without pay for ten calendar days.

2010-024

An investigation disclosed a Corporation employee violated ethics policy when the employee worked directly on a Corporation contract awarded to his former employer. Further, the investigation determined the employee’s supervisors failed to follow ethics guidelines when they hired the employee to work on the Corporation contract with a former employer.

The matter was referred to Corporation management and the employee’s duties were reviewed. The employee was provided with a limited set of duties to perform and required to undergo additional ethics training. One supervisor was disciplined and required to complete ethics training. The other supervisor resigned from the Corporation.

2010-019

 The OIG received information that an AmeriCorps grantee in Louisiana may have misused AmeriCorps members by requiring the members to perform religious activities in violation of the grant provisions. Our investigation determined there was no evidence of misuse of the AmeriCorps members.

2010-018

An investigation disclosed that officials at an AmeriCorps program in New Jersey were allowing AmeriCorps members to perform services outside the scope of the grant when they had the members perform clerical duties.

This matter was referred to the New Jersey State Commission, which concurred with our findings and required the grantee to reimburse more than $400 in Federal program funds to the Commission and to institute corrective measures.

2010-014

An investigation found no credible evidence that program officials of a Senior Corps Program in Tennessee misapplied Federal program funds.

The results of the investigation were coordinated with Corporation management, which made recommendations to the grantee to strengthen its internal controls. The grantee implemented the changes and was in the process of being taken off of the Corporation’s high-risk grantee designation.

2010-005

An investigation disclosed program officials of a Retired and Senior Volunteer Program in Louisiana used more than $4,900 of Federal program funds for purposes outside the scope of their Corporation grant.

The matter was referred to Corporation management, which concurred with our findings and required the grantee to reimburse the questioned costs.

2009-035

An OIG investigation disclosed that a VISTA sponsor in Florida conspired to allow a VISTA member to receive a living allowance while also being paid as an employee, misusing more than $8,000 of Federal program funds.

The Department of Justice declined to prosecute due to the low dollar amount.

As a result of this investigation, Corporation management debarred two of the targets from participating in Federal procurement and non-procurement programs for three years.

2009-020

A joint investigation with a local police department disclosed that a former Retired and Senior Volunteer Program director in West Virginia embezzled more than $124,000 of which more than $104,000 was Federal program funds.

The program director pled guilty in a local circuit court and was sentenced to five years probation, ordered to pay restitution of more than $124,000, and write an apology to the agency that was victimized.

The matter was referred to Corporation management, which concurred with our findings and the grantee was required to reimburse more than $104,000 of Federal funds that had been embezzled. Further, the subject was debarred by the Corporation from participating in Federal procurement and non-procurement programs for three years.

2009-14

 The OIG received information that Senior Corps program officials in Tennessee were misusing Federal program funds. Our investigation disclosed no evidence that Federal program funds had been misused.

2008-040

The OIG received information that a Senior Companion Program (SCP) Director in Iowa had falsified his time sheets and inflated volunteer service hours. Our investigation disclosed no credible evidence that volunteer service hours were being inflated to exhaust the program’s stipend budget. Further investigation disclosed no credible evidence that the Program Director had falsified his time sheets. Our investigation did disclose that one volunteer had exceeded the maximum limit on service hours and a second volunteer was providing service that was not in compliance with the grant, totaling $7,496.55 in disallowed cost.

The investigation further disclosed evidence that, between 2006 and 2008, program officials were billing the State of Iowa under their MEDICAID Waiver Program and billing the SCP grant for the same hours. The total amount double-billed to the SCP grant was $35,849.20.

The Department of Justice declined to prosecute as the loss did not meet its threshold of $100,000.

The matter was referred to Corporation management, which concurred with our findings and issued a demand payment letter to the grantee to recoup a total of $43,345.75

2008-029

An investigation disclosed that officials at an AmeriCorps program in Washington, DC, falsely computed the service hours performed by the AmeriCorps members, resulting in the members wrongfully receiving education awards.

The matter was referred to Corporation management, which partiallyconcurred with our findings and required the grantee to reimburse theCorporation more than $4,000.

2008-023

An investigation disclosed officials at an AmeriCorps program inMichigan allowed AmeriCorps members to perform duties as staff membersat two of their sites and allowed AmeriCorps members to perform services outside the scope of the grant. As a result, more than $78,000 of Federal program funds were misapplied.

The matter was referred to Corporation management, the questioned costs were substantiated and the funds were repaid by the grantee.

2007-030

An investigation disclosed an AmeriCorps executive director in Georgia misapplied Federal program funds to supplement employee salaries and falsely certified service hours to qualify them for education awards to which they were not entitled. The executive director also falsely reported AmeriCorps members’ hours that were performed outside the grant period, awarded service hours to members who performed service outside the scope of the grant, and inflated service hours on the members’ time sheets. In total, the executive director misapplied more than $370,000 of Federal program funds.

The matter was referred to DOJ, which declined criminal prosecution in favor of civil action. DOJ Civil Division declined to take civil action.

The matter was also referred to Corporation management and the subject was debarred by the Corporation from participating in Federal procurement and non-procurement programs for three years.

2006-021

An investigation disclosed an AmeriCorps executive director in Mississippi misapplied more than $99,000 of Federal program funds when the executive director enrolled child care employees in the AmeriCorps program so that AmeriCorps funds could be used to supplement the employees’ salaries and provide them with benefits.

The matter was referred to DOJ for prosecution and the target subsequently entered a plea agreement and was sentenced to two years of probation, 200 hours of community service, was fined $3,000 and required to pay restitution of more than $99,000.

The matter was also referred to Corporation management and the subject was debarred by the Corporation from participating in Federal procurement and non-procurement programs for three years.

2005-054

An investigation disclosed that a former executive director of a VISTA program in New York misapplied Federal program funds for non-VISTA related expenses. The former executive director authorized the use of Federal VISTA funds to be used to pay the expenses to keep his non-profit business in operation, misapplying more than $330,000 in Federal program funds.

The matter was referred to DOJ for criminal prosecution and the former executive director subsequently signed a Pre-Trial Diversion Agreement in which the subject agreed to serve one year of probation and perform 250 hours of community service.

The matter was also referred to Corporation management and the subject was debarred by the Corporation from participating in Federal procurement and non-procurement programs for three years.

2005-041

An investigation disclosed that a former VISTA program coordinator in Maryland conspired with her husband to enroll their employees in the Corporation’s VISTA program so that Federal funds could be used to supplement their private company employees’ of salaries and provide them with benefits. As a result of their activities, they misapplied more than $37,000 of Federal program funds.

The matter was referred to DOJ, which declined criminal prosecution in favor of civil action. The matter was then referred to the DOJ Civil Division and was accepted for civil action, but subsequently declined when the subjects filed bankruptcy and did not have any assets to recoup the lost Federal funds.

The matter was also referred to Corporation management and the subject was debarred by the Corporation from participating in Federal procurement and non-procurement programs for one year.