OIG Audit – Department of Labor
Compiled by Lisa Evans Rockwell — September 14, 2018
The AUDIT of The Dept of Labor.
There are 14 Internal Dept Audits within the main Audit.
I’m focusing on the 3 MOST IMPORTANT ONES:
1. H-1B VISA PROGRAM
2. JOB CORPS PROGRAM
3. WORKERS COMP
The Dept of Labor has a yearly budget of $9.7 Billion.
Let’s start with the Dept EVERYONE wants to know more about, the H-1B VISA PROGRAM.
- ➡The OIG investigation has shown these visa programs, in particular the H-1B program, to be susceptible to significant fraud and abuse, often by dishonest immigration agents and attorneys, labor brokers, employers, and organized criminal enterprises.
- ➡The OIG investigation have revealed schemes in which fictitious companies or dishonest businesses seeking to acquire foreign workers filed fraudulent applications with DOL.
- ➡As part of our investigations, we have also uncovered numerous instances of unscrupulous employers misusing FLC programs to engage in human trafficking, with victims often exploited for economic gain.
💥HUMAN TRAFFICKING FOUND IN THE H-1B VISA PROGRAM!!💥
- ➡The OIG recommends that the Department determine and document whether there is legal authority to DEBAR individuals convicted of FLC violations resulting from OIG investigations and report FLC program suspensions and debarments on the government-wide exclusion system.
- ➡The OIG recommends👉 legislative action👈 to provide DOL with the statutory authority to ensure the integrity of the H-1B program, including the ability to verify the accuracy of information provided on labor condition applications
🚨OIG’S CALL TO CONGRESS TO INVESTIGATE THE FRAUD AND HUMAN TRAFFICKING IN THE H-1B VISA PROGRAM!🚨
Here are a few prosecutions that happened during the 6 month Investigation:
- ➡Virginia Business Owner Sentenced for His Role in Scheme to Defraud the H-1B Visa Program
On December 22, 2017, Raj Kosuri was sentenced to 28 months in prison and ordered to forfeit $15 million for his role in a scheme to defraud the H-1B visa program
- ➡Former Texas School District Executive Sentenced to Prison for Visa Fraud Conspiracy
On October 23, 2017, Victor Leos, former executive director of human resources for the Garland Independent School District (GISD), was sentenced to 24 months in prison and ordered to pay more than $315,000 in restitution for his leading role in an employment-based visa fraud conspiracy.
- ➡Florida Man Sentenced for Defrauding the H-2A Visa Program
On January 31, 2018, Alfonso Marquez, the president of USA Specialty Services Corporation, was sentenced to 4 months in prison, followed by 3 years of supervised release, and ordered to pay a $5,000 fine. Marquez defrauded DOL’s H-2A nonimmigrant visa program by fraudulently seeking 300 H-2A nonimmigrant visas from DOL and the U.S. Department of Homeland Security.
- ➡Pennsylvania Information Technology Company Owner Pleads Guilty to Charging Visa Applicants Approximately $450,000 in Illegal Filing Fees
On January 9, 2018, Ramesh Venkata Pothuru, former owner and operator of Virgo, Inc., and Isync Solutions, Inc., pled guilty to wire fraud and visa fraud for his role in an employment-based visa scheme.
The OIG has established the H-1B Visa program is rife with FRAUD AND HUMAN TRAFFICKING!
Let’s move on to yet perhaps THE most wasteful, useless program still in existence.
The JOB CORPS.
The Job Corps budget is $1.7 Billion/YR
The purpose of the program is to offer free -of-charge education and vocational training to young men and women ages 16 to 24.
There are RULES in order to join the Job Corps.
A few are:
- NO DRUG USE
- NO CRIMINAL BACKGROUND
- NO BEHAVIORAL PROBLEMS
REMEMBER THOSE👆, IT’S IMPORTANT.
During the Audit the IG found:
- ➡Job Corps could not demonstrate that it had assisted participants in finding jobs for 94% of the placements in the reviewed sample
💥WITH A BUDGET OF $1.7 BILLION/YR JOB CORPS REPORTS THEY ONLY FIND JOBS FOR 6% OF ALL THE KIDS ENROLLED!!!💥
- ➡The OIG is concerned about the ability of the Job Corps program to provide a safe environment for its students and staff.
- ➡Job Corps centers have been challenged by violence and other criminal behavior for years. The OIG audit found that some Job Corps centers failed to report and investigate serious misconduct, such as DRUG ABUSE AND ASSAULTS, or downgraded incidents of violence to lesser infractions, creating an unsafe environment for students and staff.
- ➡Furthermore, the OIG found problems with centers NOT CONTACTING LAW ENFORCEMENT to report serious, potentially criminal misconduct incidents, as well as continuing problems with centers not reporting such incidents to Job Corps.
- ➡The OIG observed physical security weaknesses, such as inoperable closed-circuit television cameras and damaged or absent fencing along center perimeters. Finally, Job Corps required pre-employment background checks for only a few center positions.
So, a Dept that has a budget of $1.7 BILLION/YR is rife with CRIMINALS, who are committing crimes WHILE in the program, only 6% of ALL applicants even get a job(!!), there is NO Internal Oversight WHAT SO EVER and the buildings have NO SECURITY.
Oh, it get’s WORSE. At this point you might wanna fix yourself a stiff drink or grab a smoke.
Let’s enter the BLACKHOLE OF WORKERS COMP.
- ➡The OIG found the Department’s ability to effectively manage the use and cost of pharmaceuticals in its workers’ compensation programs, especially the cost of compounded medications, an area in which costs and fraud have rapidly escalated.
- ➡The cost of prescription drugs in the Federal Employees’ Compensation Act (FECA) program rose from a reported $183 million in FY 2011 to $477 million in FY 2016, an increase of 161%.
HOLY MOLY!! WHAT!?!? WHY?
- ➡This dramatic increase was due almost exclusively to the rise in reported costs for compounded drugs, which jumped from approximately $2 million in FY 2011 to $263 million in FY 2016, an increase of more than a hundredfold!!!
WHAT IS BEING DONE ABOUT IT???
- ➡The OIG has asked for increased congressional oversight, in November the Department began requiring letters of medical necessity for compounded medications it has since reported that expenditures for compounded drugs have significantly declined.
The Investigation’s are still going on
Nevertheless, pharmaceutical prescriptions remain highly susceptible to fraud. Our current investigations are focusing on collusion between prescribing physicians and dispensing pharmacies
🚨In one case alone, the OIG has identified potential fraud involving nearly $158 million…ONE CASE!!!🚨
Is it any wonder WHY President Trump stated he wanted ‘TO CUT THE BUDGET OF THE LABOR DEPT’, Specifically the JOB CORPS DEPT?!?
We can THANK SEC.ACOSTA FOR THE AUDIT AND THE GREAT JOB HE IS DOING!
READ THE WHOLE 96 PAGE AUDIT HERE
More supporting Documents and FACTS HERE
The FY 2018 request for the Department of Labor (DOL) is $9.7 billion in discretionary authority, with additional mandatory funding, and 15,924 full-time equivalent employees (FTE).
The FY 2018 Budget reflects the Administration’s commitment to national security and highlights the tradeoffs and choices inherent in pursuing this goal. This means taking a closer look at the role and size of the Federal Government by prioritizing DOL programs that provide a good return for the taxpayer and serve the most critical functions, as well as consolidating or eliminating duplicative or ineffective programs. DOL will make needed reforms and renew its commitment to work for the American people by improving compliance assistance, restoring fiscal responsibility and accountability, and putting Americans back to work.
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SOURCE: Lisa Evans Rockwell