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Education Funding

The Stimulus Fraud Detectives

By Michele McNeil — March 31, 2009 1 min read

The Government Accountability Office wants everyone to know they’re on high stimulus fraud alert.

In a press release issued earlier this week, the GAO is asking everyone from private citizens to government workers to be on the lookout for fraud, and to report it via the FraudNet system. FraudNet is an email, phone, and fax system that takes tips confidentially—and then GAO officials, who represent the investigative arm of Congress, will pursue the leads.

Given that $100 billion of the $787 billion from the stimulus package is going to education, there’s bound to be fraud even in the K-12 arena. Earl Devaney, who leads the new Recovery Act Transparency and Accountability Board (unfortunately called the RAT Board for short), has pretty much guaranteed some fraud. Apparently, the industry-standard for fraud is 7 percent. In the stimulus package, that means there’s the potential for $7 billion in waste and fraud in education spending alone.

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