Skip to comments.How did Philly lose track of $33 million?
Posted on 04/28/2018 6:37:17 AM PDT by george76
City officials are trying to figure out if $33.3 million is missing from the citys main bank account.
The discrepancy is the amount the city reports having in its records vs. what bank statements show and was first flagged in the citys 2017 Comprehensive Annual Financial Report (CAFR), released in February. But the problem wasnt widely known to the public until the current series of budget hearings in which Councilman Allan Domb has peppered every city financial official about the unaccounted-for funds.
Im flabbergasted, Domb said as he questioned the citys treasurer earlier this month. There could be a theft. I dont really know whats going on.
Both current City Controller Rebecca Rhynhart and former Controller Alan Butkovitz say it shouldnt have reached this point.
payroll records were not reconciled between late 2010 and last July, when, city Treasurer Rasheia Johnson said, she discovered the problem and asked her staff to start reconciling them and also the main cash account. Dubow said there dont seem to be any discrepancies in payroll records.
Still, Domb said the city needs to operate like a business and not slip on essential accounting practices. He said if $33 million was not accounted for in his business, he would stay up all night trying to figure out what happened.
Its really important now because we are asking taxpayers to pay more in taxes when we arent managing effectively and efficiently the current money that they have been paying us, Domb said
Not reconciling accounts is an inducement for wrongdoing
(Excerpt) Read more at philly.com ...
It’s called three card monte
Start by auditing democrats.
It wasn't "lost". It was stolen by the psychotic criminal enterprise known as the Demonic Party.
It’s the cops. Check out their donut account.
We need a full audit and accounting of EVERY federal and state department and agency, to determine how much is really missing, where it went and who is responsible. $33 mil is a drop in the bucket, but a wake-up call.
The money is in the pockets of a few political family-member “consultants” and “aides”.
Check the freezers of the City administrators.
Check the beachfront condo sales in the Dom. Republic.
Nothing like single entry accounting. /smile
Probably in a coat pocket, or pair of pants they forgot they had it in..
Dem grift. Especially amongst the, ah, duskier Dem brethren. “Reparations,” dontcha know.
How stupid do they think we are? This isn’t like misplacing your phone or your reading glasses. This is criminal negligence. Someone(s) needs to go to jail.
U.S. Department of Justice
July 29, 2015
Office of Public Affairs
(202) 514-2007/TDD (202) 514-1888
WASHINGTONA member of Congress and four of his associates were indicted today for their roles in a racketeering conspiracy involving several schemes that were intended to further the political and financial interests of the defendants and others by, among other tactics, misappropriating hundreds of thousands of dollars of federal, charitable and campaign funds.
Congressman Chaka Fattah Sr., 58, of Philadelphia; lobbyist Herbert Vederman, 69, of Palm Beach, Florida; Fattahs Congressional District Director Bonnie Bowser, 59, of Philadelphia; and Robert Brand, 69, of Philadelphia; and Karen Nicholas, 57, of Williamstown, New Jersey, were charged today in a 29-count indictment with participating in a racketeering conspiracy and other crimes, including bribery; conspiracy to commit mail, wire and honest services fraud; and multiple counts of mail fraud, falsification of records, bank fraud, making false statements to a financial institution and money laundering.
Assistant Attorney General Leslie R. Caldwell of the Justice Departments Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania, Special Agent in Charge Edward J. Hanko of the FBIs Philadelphia Division and Special Agent in Charge Akeia Conner of the Internal Revenue Service-Criminal Investigation (IRS-CI) Philadelphia Field Office made the announcement.
As charged in the indictment, Congressman Fattah and his associates embarked on a wide-ranging conspiracy involving bribery, concealment of unlawful campaign contributions and theft of charitable and federal funds to advance their own personal interests, said Assistant Attorney General Caldwell. When elected officials betray the trust and confidence placed in them by the public, the department will do everything we can to ensure that they are held accountable. Public corruption takes a particularly heavy toll on our democracy because it undermines peoples basic belief that our elected leaders are committed to serving the public interest, not to lining their own pockets.
The public expects their elected officials to act with honesty and integrity, said U.S. Attorney Memeger. By misusing campaign funds, misappropriating government funds, accepting bribes, and committing bank fraud, as alleged in the Indictment, Congressman Fattah and his co-conspirators have betrayed the public trust and undermined faith in government.
These crimes and the subsequent elaborate cover-up constitute an egregious breach of public trust, said Special Agent in Charge Hanko. It is the duty of the FBI, IRS and Department of Justice to investigate and prosecute those who violate this trust and put personal gain above public service.
Public corruption by our elected officials and their associates undermines the American publics confidence in our government, said Special Agent in Charge Conner. When our elected officials and their associates violate the law and create sophisticated financial schemes to enrich themselves, the Internal Revenue Service-Criminal Investigation, will work diligently with our fellow law enforcement partners to restore the publics trust.
Specifically, the indictment alleges that, in connection with his failed 2007 campaign to serve as mayor of Philadelphia, Fattah and certain associates borrowed $1 million from a wealthy supporter and disguised the funds as a loan to a consulting company.
After he lost the election, Fattah allegedly returned $400,000 to the donor that the campaign had not used, and arranged for Educational Advancement Alliance (EAA), a non-profit entity that he founded and controlled, to repay the remaining $600,000 using charitable and federal grant funds that passed through two other companies, including one run by Brand.
To conceal the contribution and repayment scheme, the defendants and others allegedly created sham contracts and made false entries in accounting records, tax returns and campaign finance disclosure statements.
In addition, the indictment alleges that after his defeat in the mayoral election, Fattah sought to extinguish approximately $130,000 in campaign debt owed to a political consultant by agreeing to arrange for the award of federal grant funds to the consultant. According to the allegations in the indictment, Fattah directed the consultant to apply for a $15 million grant, which he did not ultimately receive, on behalf of a then non-existent non-profit entity.
In exchange for Fattahs efforts to arrange the award of the funds to the non-profit, the consultant allegedly agreed to forgive the debt owed by the campaign.
The indictment further alleges that Fattah misappropriated funds from his mayoral and congressional campaigns to repay his sons student loan debt. To execute the scheme, Fattah and Bowser allegedly arranged for his campaigns to make payments to a political consulting company, which the company then used to lessen Fattahs sons student loan debt. According to the allegations in the indictment, between 2007 and 2011, the consultant made 34 successful loan payments on behalf of Fattahs son, totaling approximately $23,000.
In another alleged scheme, beginning in 2008, Fattah communicated with individuals in the legislative and executive branches in an effort to secure for Vederman an ambassadorship or an appointment to the U.S. Trade Commission. In exchange, Vederman provided money and other items of value to Fattah. As part of this scheme, the indictment alleges that the defendants sought to conceal an $18,000 bribe payment from Vederman to Fattah by disguising it as a payment for a car sale that never actually took place.
Finally, the indictment alleges that Nicholas obtained $50,000 in federal grant funds that she claimed would be used by EAA to support a conference on higher education. The conference never took place. Instead, Nicholas used the grant funds to pay $20,000 to a political consultant and $10,000 to her attorney, and wrote several checks to herself from EAAs operating account.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The case is being investigated by the FBI and IRS-CI. Assistance was also provided by the Department of Justices Office of the Inspector General, the NASA Office of Inspector General and the Department of Commerces Office of Inspector General. The case is being prosecuted by Trial Attorneys Eric L. Gibson, T. Patrick Martin and Jonathan Kravis of the Criminal Divisions Public Integrity Section and Assistant U.S. Attorney Paul L. Gray of the Eastern District of Pennsylvania. Trial Attorney Bob Dalton of the Criminal Divisions Organized Crime and Gang Section also provided assistance in this case.
Look up Pay to Play with Loop enterprise - Craig Robinson ____Street
And Senator Burris
In Chicago, losing $33 Million Dollars would be an improvement over the Billions that are lost. Rahm still tells people that O’Hare and Midway Airports are losing money.
The mob has most of it, the rest they passed around to liberal politicians.
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