Politics | 04/01/2009 10:30 am
In New Recession, Traditional Schemes Make a Return

The economy’s sinking, yes, but there’s plenty of money being dispensed in DC, where businesses have been lining up for the government’s various stimulus plans. And as the money spreads out across the land, so too does the potential for fraudsters hoping to pocket a piece, says Blake Coppotelli, a senior managing director at the Kroll private-investigation firm.
Once known for fighting corruption on Wall Street, Kroll is shifting an eye to the nation’s capitol to stop schemers from misallocating funds, Coppotelli tells Politico:
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 … One prime area is infrastructure projects. With the near collapse of the real-estate and construction markets, traditional fraud and rackets such as bribery, kickbacks and bid rigging, will find a wealth of opportunity in the stimulus funds.
We know this isn’t the Great Depression, but some of these schemes sound a bit like throwbacks. And unlike some trends, this return isn’t welcome.























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