Joel Bondy, executive director of the Office of Payroll Administration in New York City since April 2004, is at the heart of an alleged $80 million information technology fraud scheme. He has been suspended without pay since December 16, 2010, by Mayor Michael R. Bloomberg and Comptroller John C. Liu, pending investigation. Federal prosecutors have alleged a connection between Mr. Bondy and IT several consultants in a scheme that manipulated the city into steering expensive contracts to businesses that they controlled, and of redirecting some of that money for their own enrichment.
Questions:
1. What controls would have helped prevent the alleged allegations?
2. Why is this type of fraud among the most difficult to prevent?
3. Look at the ACFE 2010 Report to the Nations on Occupational Fraud and Abuse (See http://www.acfe.com/rttn/rttn-2010.pdf). If fraud is proven, did this fraud span a period less than average, about average, or longer than average?
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Source:
Chen, D.W. and J. Eligon. (2010). Director of City Agency at Center of Fraud Case Is Suspended. The New York Times, December 16 (Retrievable online at http://www.nytimes.com/2010/12/17/nyregion/17citytime.html?_r=1&nl=nyregion&adxnnl=1&emc=ura1&adxnnlx=1292770876-WsWnBf5l9P1Q04+cdf0vHg)
