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December 7, 2007

Possible fraud uncovered at state agency

Lax controls at a state agency are responsible for alleged fraud and other misuse of funds involving more than $100,000 over three years, according to an investigation released yesterday by the state's accountability office.

The report from the Office of Program Evaluation and Government Accountability identified apparent fraud involving three employees of the Department of Labor's Bureau of Rehabilitation Services. The report, available here, blamed lack of proper procedure and oversight for the potentially criminal misuse of funds. The bureau "lacks effective policies and procedures to help ensure all staff responsibly steward resources," the report said.

The fraud cases have been referred to the attorney general's office for possible criminal investigation, the report said. According to Blethen Maine News Service, the employees have resigned.

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