.
July 18th, 2012
11:45 PM ET

Troubled federal agency paid for cooking classes, hosted holiday video contest

Amid an ongoing congressional probe into the General Services Administration, a CNN investigation has uncovered more evidence of wasteful spending at the agency, including cooking classes for employees that cost as much as $3,350 per class.

For years, the GSA paid to send employees to these cooking classes to build team spirit, part of a spending pattern that the agency now says was inappropriate.

Employees based in Kansas City, Missouri, attended classes at The Culinary Center of Kansas City, located in suburban Overland Park, where they cooked meals.

Senator encourage GSA to 'clean house'

The GSA confirmed that there were nine classes beginning in June 2007, with the last class in June 2011. The total cost to the GSA was $20,701.

"We should be thinking about our federal customers, our taxpayers and our associates," said one employee who attended a cooking class. "And that seems to have been lost in these team-building exercises ... If you don't go, you're ostracized."

Read more...

March 19th, 2012
11:22 PM ET

Video: Exclusive: Tax refund fraud revealed

Criminals across the country are raking in billions of dollars in tax refunds through a new and brazen form of fraud that takes advantage of the IRS's fast online returns, law enforcement officials say.

Using laptops and free Wi-Fi connections, criminals are stealing identities and using the names of legitimate taxpayers to file fraudulent online tax returns. They've raked in billions, buying luxury cars, expensive jewelry and plastic surgery, police said.

"It's like the federal government is putting crack cocaine in candy machines," said Detective Craig Catlin of the North Miami Beach, Florida, Police Department. "It's that easy."

First, thieves obtain Social Security numbers and other personal information from insiders at hospitals, doctor's offices, car dealerships or anywhere the information is stored. Then, they file an online tax return using the real taxpayer's name and a fictitious income. In most cases, the criminals buy a debit card so the IRS can issue the refund on that card, although some thieves have also gotten their returns on actual Treasury checks.

Read more...

Post by: ,
Filed under: Crime & Punishment • Taxes