Posted on 06/13/2018 7:37:37 AM PDT by Kid Shelleen
City Controller Rebecca Rhynhart released a report Tuesday night stating $33.3 million is missing from the City of Philadelphia's main cash account. Besides financial discrepancies, the report also found issues ranging from outdated technology to inadequate staffing.
"My office has opened a fraud investigation," Rhynhart said.
According to the report, the discrepancy dates back several years. The report states other city accounts have not been reconciled by the Treasurer's Office, some since 2010.
(Excerpt) Read more at 6abc.com ...
You mean the judges cover for the thieving Democrat politicians?
You can bet that, unless they can pin it on a straight White male, nothing will come of this.
A reassignment with a raise or suspension with full pay otherwise.
Worse still, is how in this day and age we have come to expect this sort of thing on a continual basis.
A few years ago, my little town (which has no history of embezzlement) found that $2M was missing from our school account (it wasn’t embezzled). They had a big public meeting. To explain the lack of embezzlement. A number of official stood up and talked about the sloppy bookkeeping (and how this wasn’t embezzlement). They explained that the money was just gone (not embezzled) and could not be recovered. No one would be prosecuted (because nothing was embezzled) and we just had to move on.
Sloppy bookkeeping. [shrug] What can you do?
This is the same clown that danced like a goofball when the crooked judged said the POTUS couldn't financially penalize sanctuary cities, right? Oh please let him be behind this fraud and on his way to the gray bar hotel soon. PULEEZE!
http://insider.foxnews.com/2018/06/06/philadelphia-mayor-kenney-dances-after-sanctuary-city-court-win-against-trump
A billion here, a billion there... pretty soon you’re talking about some real money
There’s a simple fix. Increase the soda tax
FYI---Dr. Ben Carson Finds Half TRILLION Dollars in Errors While Auditing Obama’s Housing Agency
hannity.com ^ | 4/6/2017 | unknown
Posted on 4/6/2017 12:04:32 PM by rktman
Dr. Ben Carson has discovered over $500 billion (that's with a 'B') in errors and accounting mistakes during his audit of the Obama administration’s Housing and Urban Development budget.
One of Dr. Carson’s first orders after being confirmed as the Secretary of HUD was a thorough audit of the agency, which has been accused of fraud and over-budgeted projects throughout the entire Obama administration.
What did the auditors find? Over $520 billion in budgetary mistakes and clerical errors. (Excerpt) Read more at hannity.com ...
HAT TIP HOLLYB The audit is lengthy. Here’s a couple of things I came across:
****Errors in financial statement note disclosures. We found that 19 of 31 financial statement notes (61 percent) contained errors with an approximate absolute value totaling
$278.5 billion. Of the $278.5 billion in errors, $159.4 billion in errors was due primarily to (1) incorrect data entry, (2) omission of restated balances, or (3) incorrect data provided by HUD’s component entities (FHA and Ginnie Mae).
The remaining $119.1 billion in errors was due to inappropriate rounding adjustments. We found several instances in which rounding was performed to the nearest billion and hundred billion,
1. HUD Assets and Liabilities Were Misstated and Not Adequately Supported
<><>HUD did not properly account for, have internal controls over, or have adequate support for all of its assets and liabilities. Specifically, (1) CPD did not validate its accrued grant liabilities estimates; (2) HUD’s accounting for its cash management process did not include the recognition of receivables and payables when incurred and understated its prepayment balance; (3) HUD did not recognize a prepayment for funds advanced to its IHBG grantees that were used for investment; (4) EHLP could not be audited; (5) balances related to HUD’s loan guarantee programs were not reliable; and (6) HUD did not properly account for its property, plant, and equipment.
<><> These problems occurred because of continued weaknesses in HUD’s internal controls and a lack of communication between OCFO and the program offices. As a result, several financial statement line items were misstated or could not be audited as of September 30, 2016. Specifically, (1) CPD’s accrued grant liabilities estimates could not be audited; (2) HUD’s PIH prepayments and accounts receivable balances contained errors with an absolute value of approximately $476.2 million and $201.2 million, respectively, and accounts payable were understated by an unknown amount; (3) HUD’s expenses on its statement of net costs were overstated by $293.2 million; (4) loans receivable balances for EHLP could not be audited and were potentially misstated; (5) balances related to HUD’s loan guarantee programs were misstated by unknown amounts; and (6) HUD’s $297 million balance for property, plant, and equipment was not supported.
2....some contractors had inappropriate access to sensitive budget and general ledger financial transactions. Further, inaccurate security documentation could lead to inappropriate decisions.
3. HUD Continued To Not Comply With the HOME Investment Partnership Act
4. HUD Did Not Comply With Treasury Financial Manual’s Rules on Cash Management or 2 CFR Part 200
5. HUD Did Not Comply With the Improper Payments Elimination and Recovery Act of 2010
6. Ginnie Mae Did Not Comply With the Debt Collection Improvement Act of 1996
7. HUD Assets and Liabilities Were Misstated and Not Adequately Supported
Much more at link: https://www.hudoig.gov/sites/default/files/documents/2017-FO-0005.pdf
I work for a good sized subsidiary of a multi-national company.
They have auditors come in to the office for a few days every few months. They just show up and set up camp in a conference room for a few days, then leave.
I assume they are checking everything over. Sloppy accounting isn’t an excuse.
If there is a problem, it’s dealt with.
The last CFO mysteriously died. (actually he was really good. Totally natural causes)
In a just world, people would be questioned and would likely end up fired or even in jail. But, this is Philly.
The IRS continues to uncover abusive tax-avoidance schemes involving offshore activity. Find information here pertaining to Union Bank of Switzerland (UBS).
<><> conspiring to defraud the IRS by concealing millions of dollars in assets and income in offshore bank accounts at UBS and other foreign banks, and for filing false individual income tax
<><> attempting to interfere with the administration of the Internal Revenue laws and filing false tax returns.
<><>conspiracy to defraud the government
<><>failing to disclose secret offshore bank accounts
<><> willfully failing to file a Report of Foreign Bank and Financial Accounts (FBAR) for an account he controlled at UBS in the year 2005.
<><> concealed a bank account at UBS by placing his domestic assets in the name of a nominee and failing to file income tax returns
<><>concealing over $750,000 in a UBS account by transferring ownership of the account to a nominee Panamanian corporation.
<><> failed to report a UBS account containing $900,000. Between 2000 and 2008, Chatfield transferred the $900,000 through several offshore accounts of nominee entities.
<><>Gurary owned and controlled a financial account at UBS AG which was in the name of a Bahamian entity and failed to report interest income earned on his tax returns.
<><> conspiring with a family member to hide over $11 million in an offshore UBS bank account......assisted in establishing a sham foundation in Liechtenstein to further conceal money from the IRS.
<><>conspiracy to defraud the IRS, filing false tax returns, and failing to file Report of Foreign Bank or Financial Accounts (FBARs). Goldstein is alleged to have transferred over $2 million in a UBS account to a sham Panamanian corporation in an effort to conceal the account from the IRS.
<><>failing to comply with foreign bank account reporting requirements. UBS bankers assisted Rudolph with creating a shell company registered in the British Virgin Islands and a shell corporation registered in Hong Kong in hiding in excess of $1 million.
<><>set up a sham Hong Kong corporation which was listed as the holder of an UBS account in an effort to conceal his income from the IRS. This account and offshore accounts collectively contained almost $42 million in unreported income.
<><> guilty to filing a false tax return wherein he failed to report his interest in or signature authority over financial accounts at UBS
<><>failed to disclose the existence of a Swiss bank account maintained by UBS of which he was the beneficial owner and failed to report any income earned on that account.
SOURCE https://www.irs.gov/uac/offshore-tax-avoidance-and-irs-compliance-efforts
U.S. Department of Justice
July 29, 2015
Office of Public Affairs
(202) 514-2007/TDD (202) 514-1888
WASHINGTON—A 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; Fattah’s 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 Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania, Special Agent in Charge Edward J. Hanko of the FBI’s 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 people’s 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 public’s 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 public’s 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 Fattah’s 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 son’s 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 Fattah’s son’s student loan debt. According to the allegations in the indictment, between 2007 and 2011, the consultant made 34 successful loan payments on behalf of Fattah’s 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 EAA’s 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 Justice’s Office of the Inspector General, the NASA Office of Inspector General and the Department of Commerce’s Office of Inspector General. The case is being prosecuted by Trial Attorneys Eric L. Gibson, T. Patrick Martin and Jonathan Kravis of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Paul L. Gray of the Eastern District of Pennsylvania. Trial Attorney Bob Dalton of the Criminal Division’s Organized Crime and Gang Section also provided assistance in this case.
https://www.fbi.gov/philadelphia/press-releases/2015/congressman-chaka-fattah-and-associates-charged-with-participating-in-racketeering-conspiracy
I have an accounting degree. Money doesn’t just disappear. It goes somewhere or it was never received. They may have overstated their budget but someone is responsible for that. That budget didn’t write itself.
They are hiding the person responsible.
FREEPER POSTED.... in January 2012 my wife called about her D/D S/S check not arriving. She as told by S/S that she,
and "many, many" others had their SS database records changed to deposit her payments to a Central America bank.
I couldn't find anything in the news about this. It smelled to me at the time that an insider had stolen millions if not billions in this manner.
NOTE Freeper concluded that perhaps it was to help Obama's reelection campaign that year........
Aren’t the Feebs supposed to investigate **** like this?! Good GAD.
“Mistakes were made.”
And where the heck is the state’s comptroller? Asleep at the switch?
I respectfully beg to differ.
What is likely to come of this, is the city will hire on dozens more employees, to help keep better track of the money. “If only we had more staff....”, this would not have happened, they will claim.
But you are right that no one will be punished, fired, or face any personal consequences as a result of whatever corruption is underway there.
Made men wink.
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