Monday, May 24, 2010

$15,000 Fraudulent Use of Federal Credit Card

An employee of the U.S. Bureau of Prisons pleaded guilty on May 14, 2010 to fraud charges filed against her for her purchase of more than $15,000 of personal items with her employer's credit card.  Personal expenses charged against the credit card included iPods, TVs, DVD players, and $6,000 of gas for her personal car.

Michelle Dunmeyer will be sentenced on July 13, 2010 and could face up to ten years in prison in addition to a fine of a half million dollars.  She will also be required to pay restitution to the federal government.

Caution:  Government issued credit cards are a great tool for streamlined procurement.  However, they must be managed carefully by public agencies.  Without sufficient management controls, reporting, and accountability systems in place, abuses may occur.  If you would like to discuss having me conduct an audit of your credit card program for risk factors, please contact me.

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