Saturday, April 4, 2009

Stimulus money might be lost to fraud.


Kroll, the private investigative firm that came of age in the go-go ’80s as a hired sleuth for Wall Street traders locked in hostile takeover battles, is on the beat again, this time looking for fraudsters in the government’s bailouts.

The firm put out its regular “global fraud report” earlier this week, arguing that 10 percent of the billions of dollars’ worth of stimulus funds will likely be lost to fraud unless stricter oversight controls are put in place.

“Those impacted by the economic instability who are inclined to engage in fraudulent business practices will work to secure stimulus funds by any means possible,” said Blake Coppotelli, senior managing director...

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