Job Corps Fraud Blog

Nationwide mismanagement of Job Corps calls for action!

Audit Reports of Job Corps from the Office of the Inspector General (OIG)

The following link will take you to the Office of the Attorney General’s (OIG) website.  You will find audit reports where Job Corps Centers and Job Corps Contractors did not follow required policy procedures in the areas of awarding sub contracts to vendors. And, where numbers and statistics where overstated in order to bring the center higher in overall rankings. The very first one speaks of questionable “overstatement” of costs by MTC Corporation (Management and Training Corporation) of over one million dollars.  Take note, MTC is a name you will hear often in the audit reports for their continuing practice of “overstating” costs and erroneous records reflecting “overstated” outcomes on their reports. OIG says “this is a continuing problem.” Read the reports… Read the rest of this entry »

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Filed under: Adams and Associates, Contractors, Department of Labor, DOL, Fraud, Improper billing, Job Corps, Job Corps Centers, Management and Training Corporation, number manipulation, OIG Reports, Performance, Shriver Job Corps Center, , , , , , , , ,

Office of the Inspector General Report to Congress Spring 2010

-verbatim from the OIG Report

Our audit work continues to reveal that the performance results (i.e., vocational training completions and student attendance) of some Job Corps centers were overstated because center operators did not ensure compliance with Job Corps’ policy and requirements.”

We conducted performance audits of five Job Corps Centers operated by three different companies under contract with the Office of Job Corps — Gainesville and Albuquerque Centers under DEL-JEN, Treasure Island and Miami Centers under ResCare, and Iroquois Center under Education and Training Resources.

The audits included coverage of the contractors’ safety programs, performance reporting, and financial activity at the centers; and each audit was expanded to address hotline complaints alleging improper practices by center management.

Read the OIG Report here, starting on page 30:

 

Filed under: Albuquerque, Contractors, DEL-JEN, Education and Training Resources (ETR), Gainsville Job Corps, Iriquois Job Corps, Job Corps, Miami Job Corps Center, OIG Reports, ResCare, Treasure Island Job Corps, , , , , , , , ,

Office of the Inspector General Report Minact Corporation August 2010

Read the entire OIG report here:

Mold, non compliance with safety and health inspections and retention of potentially violent students… the continuing saga of Job Corps and its “for profit” corporations who place greed before its public trust…

The newest Office of the Inspector General Report published August 10, 2010, found that Minact Corporation did not follow the requirements for reporting financial expenditures and managing safety and health programs at its Excelsior Springs Job Corps Center in Missouri.

The questionable expenditures amounted to $203,921 and in addition to not performing safety and health inspections as required, Minact did not follow federal disciplinary procedures nor convene all the Fact Finding boards (FFB’s) for level I and II infractions committed by students.  These level infractions include acts of physical violence committed upon others or threats of violence towards others. Non compliance with the regulations could expose staff and students to violent acts and unsafe conditions on centers. Readers may remember that I reported on this in this blog about Shriver Job corps retaining students who should have been separated because we needed the numbers in order to improve our OBS (On board Strength).  See article here:

Of particular interest to me are the photos of the mold growing on the ceiling of the culinary storage area, exposed ceiling tiles in a classroom, and protruding electrical outlet boxes on a classroom floor (Excelsior Springs Job Corps, page 13 and 14 of OIG report).  Would you want to send your child there… further… you are paying for this program through your taxes, are you satisfied that your tax dollars are being put to good use?

Minact Corporation operates the following Job Corps Centers:  Batesville Job Corps, Dr. Benjamin L. Hooks Job Corps, Gulfport Job Corps, Quentin Burdick Job Corps, Shreveport Job Corps, Excelsior Springs Job Corps, Gerald R. Ford Job Corps Civilian Conservation Centers, Hubert H. Humphrey  Job Corps, St. Louis Job Corps

Filed under: Batesville Job Corps, Contractors, Dr. Benjamin L. Hooks Job Corps, Excelsior Springs Job Corps, Gerald R. Ford Job Corps, Gulfpot Job Corps, Improper billing, Job Corps, MINACT, OIG Reports, Quentin Burdick Job Corps, Quentin Burdick Job Corps Center, Shreveport Job Corps, Shriver Job Corps Center, St. Louis Job Corps, , , , , , , , , , , ,

How to file a Complaint Against Your Job Corps Center

Did you know that most of the wrong doing bought to light against unscrupulous Job Corps contractors has come about by employees filing Hotline complaints with the Office of the Attorney ?General (OIG)?

Are you aware that the OIG will never give out your name to your Job Corps Center if you file a complaint?

This short article details the best way to file a complaint against your Job Corps Center.

“The OIG operates a hotline to receive and process allegations of fraud, waste, and abuse concerning DOL grants, contracts, programs and operations…”

What to include in your complaint:

  • who is involved,
  • when the situation you are reporting took place and whether it is still ongoing,
  • where the situation occurred,
  • what happened that was inappropriate and prompted you to contact the OIG Hotline, and
  • how the situation took place.

Your complaint must be specific and factual.  It must also contain names, dates of the occurence and where the OIG Inspector can find the false information.  For instance,

“On June 15, 2009 I was required to place a student on Work Based Learning when the student had already separated from the center.  The student’s name is John Smith, I placed him on WBL from June 15 – August 1, 2009. The leave report is in Citrix and dated the same, enclosed please find a copy of the student’s resignation letter from Job Corps dated June 14, 2009.”

The above is an example of fraud. Because Job corps contractors receive $75 per day for each student while they attend Job Corps or are off center in a legitimate training program the center will continue to receive this amount of money despite that the student has officially resigned and is no longer attending.

Your complaint absolutely cannot contain gossipy suppositions, such as:

“The center director spends a lot of time with students behind closed doors and we are certain he is a sexual predator.”  Or, “The center director drives around in a big, fancy car and we are sure he is stealing Job Corps money to pay for the expensive car… how else can he afford it on his salary?”

In both of these examples, there is absolutely no proof that anything is going on, only a lot of assumptions that can get one into trouble.  Perhaps the center director’s wife received an estate settlement and purchased a new car for her husband? One cannot make empty accusations and expect the OIG to take the complaint seriously.

The OIG is bound by law to investigate every legitimate complaint, however, its powers of prosecution are limited.  It can bring fraud and wrong doing to light but, in and of itself, it cannot prosecute for fraud.  The OIG can suggest fines and request reimbursement for monies obtained illegally but, usually, there is no criminal prosecution involved for the contractors who encourage the wrong doing.

Make sure to read the link here:

And, when you are ready to file your complaint, the phone number or the address is as follows:

  • Telephone: 202-693-6999 or 1-800-347-3756

  • Fax: 202-693-7020

  • Mail Address:
    Attention: Hotline
    Office of Inspector General
    U.S. Department of Labor
    200 Constitution Avenue, N.W.
    Room S-5506
    Washington, D.C. 20210

  • This is the link for the online form: (In the scroll down window, select Job Corps as the agency)

    You can also send an Email to the Hotline Department

    hotline@oig.dol.gov

    If anone has any questions, you can also Email me at:

    jobcorpsfraud@yahoo.com

    Filed under: complaints, Contractors, Fraud, Job Corps, OIG Reports, , , ,

    ABC Georgia Overstated Job Corps Placement Outcomes (2006)

    What OIG found

    The OIG found that placement outcomes reported by ABC for program years 2003 and 2004 were not reliable and a significant number of invalid placements were claimed. We found unsupported job and educational placements; inadequate documentation of compliance with Job Corps requirements; and confirmed cases of signature forgeries on educational placement verification forms.

    We specifically recommended the National Director, Office of Job Corps immediately assess $214,992 in liquidated damages and review reported placements on all ABC contracts for potentially invalid placements.

    Read the OIG Report here:

     

     

    Filed under: Job Corps, number manipulation, OIG Reports, Oversight, , , ,

    Job Corps: One of the Most Wasteful, Least Effective Programs in Federal Government (1998)

    In publishing this Congressional Testimony from Congressman John Duncan (TN) (1998) I ask my readers, “What has changed about Job Corps since this speech was given before Congress?”

    1. The cost of participation for each Job Corps student has increased yearly to $28,000 per student and $1.7 billion per year.

    2. Even more proof of fraud and mismanagement of funds by contractors and Job Corps has been exposed by the Office by The Office of the Attorney General in the past twelve years. The fines and repayments have increasingly amounted to the millions of dollars since this was published.

    3. Much of Job Corps evidence of success has been based on flawed, unscientific studies that subsequently were proved to be number manipulation by the federal contractors and center operators.

    4. It should have made national front page news when actual scientific studies proved that Job Corps had little or no influence on students earning power or increased the success of its attendees.

    See this blog for the 2008 outcome study and David Mulhausen’s PhD 2008 report here:

    It is important for us to learn the history of Job Corps and to read the older reports in order to see how the proof of wrong doing  in Job Corps is increasing, not lessening. Job Corps’ “truth” is well hidden by the media and sophisticated communications and public relations specialists in order to present a positive image to the public.

    excerpts from Mr. Duncan’s testimony:

    “However, one of its programs has become one of the most wasteful and inefficient in the entire Federal Government and should either do much, much better or be abolished. Yet this agency, because on the surface it appears to be one for young people, seems to believe it should be immune from criticism and simply get one increase after another.

    I am speaking of the Job Corps. Today, it costs over $26,000 per year per Job Corps student, according to the GAO. We could give each Job Corps student an allowance of $1,000 a month, send them to some expensive private school and still save money.

    The GAO reported in testimony before the Committee on Government Reform and Oversight this past July 29 that only 14 percent of program participants completed the requirements of their vocational training.
    *An  earlier report found that only 4 percent end up in jobs for which they were trained, unless one does, as the Job Corps has at times done, and grossly distorts and exaggerates the figures and counts as a success about any former student who has gotten any type of job.”

    *-Andrea from Job Corps Fraud-

    When I worked at Shriver Job Corps in 2009 as an employment coordinator, I saw this practice still being carried out for instance, if a student completed automotive trade and got a job in their uncle’s repair shop as a part-time janitor it was considered a “trade match.”

    Filed under: congress, Contractors, Fraud, Government Accounting Office, high costs, Job Corps, Legislative and Congressional Reports, number manipulation, OIG Reports, outcome study, , , , , ,

    Martin Gross’ Conclusions about Job Corps and the Government Racket

    So who is Martin Gross? He is a noted social researcher and scientist who has testified before Congress  on Government waste, “pork barreling” and “squandering of public funds”.

    In this interview by Geoff Metcalf, Martin Gross discusses Job Corps and other job training programs.  Although the interview is about government waste as a whole, Gross is another lone voice wondering why Job Corps is touted as a success when it only graduates 14% of its attendees. When will anyone listen?

    Read the interview here:

    -excerpt

    “We have 154 different job-training programs. At no point does anyone even claim that they get any jobs. They had a cosmetology job-training program that cost $148,000 per license. We have a job corps that costs $25,000 per kid, the residential program. They said 46 percent of the kids finished the program until the inspector general came in and said, “No, you’re lying; only 14 percent completed it.” We have job-training programs in all 14 cabinet agencies. And, when I said it was $17 billion wasted, when Nancy Kassenbaum took over in ’95 as head of Education and Labor, she said, “No, no, it’s not $17 billion; it’s $25 billion.”

    Filed under: Job Corps, Job Corps Centers, Legislative and Congressional Reports, number manipulation, OIG Reports, , , , , , , ,

    More about Little Rock Job Corps and Adams and Associates from Insiders

    -from Devastated Future

    I just finished reading the OIG Report from several of Adams and Associates Job Corps Audit findings. I couldn’t help but think I was reading about the Little Rock Job Corps Center. Those same things are happening at the Little Rock Job Corps Center. I just recently stopped working at the Little Rock Center. I only worked there a very short time. I knew that this wasn’t a stable place of employment. There were very few happy employees. Most people were very unhappy, beaten down, very down depressed people. The youth had no concept of the real world. Most of the staff had been disregarded. Students knew they could lie on staff and get away with it. I have not ever seen anything like this before. It took me only a short time to realize that I couldn’t do this. There is a lot of very wrong things going on here at this facility as well. I don’t know why this center hasn’t been investigated as well. If this is happening at 4 other centers what are the chances that this same behavior is going on at all of their other centers. Well I can say that the same thing is happening here as well. Does anyone not truly care about the future of these disadvantaged youth. Once again they are being taken advantaged of and disadvantaged. They are not receiving the education and care that should be awarded to them from the hard working taxpayers. Will someone hear and act truly on behalf of the youth. They can’t read and write and they are not learning to read and write. What a devastated future they face and so do we.

    from Job Corps Fraud

    I couldn’t believe it when I worked for Shriver Job Corps under Adams and Associates… it felt like being in a Twighlight Zone movie… and we, the taxpayers are funding this outrage at 1.7 billion dollars a year! But, through a sophisticated system of media manipulation and fear and intimidation it is all a well-kept secret. Thanks for writing.

    -from A

    All I can say is corrupt Corrupt corrupt. Job Corps is a corrupt way for hard working people to be ripped off under the pretense of helping disadvantaged youth. I have seen first hand just how much helping the disadvantaged youth is being down. That is nothing much is being done that will help them in the long run to secure them a future for employment or any other skilled profession. These youth are being taken advantage of and they don’t even know it the taxpayer doesn’t realize it yet. However in a few years we will all look back on this and view it as the rip off such as the banking industry. They are being used and are getting nothing in return. These contractors are not providing any specialized care or bringing in any professionals to help these youth with their learning disabilities. The Contractors Adams and Associates say they don’t pay for any outside programs. They want to portray themselves to be a non profit organization in order to receive free services from other organizations. Still nothing is being done for the welfare of the disadvantaged youth. They come into the program not being able to do basic Math and Reading and they leave the program not being able to do basic Reading and Math. Check it out especially in the Little Rock area. The youth can’t get employment because they can’t pass the entrance exams. Now who is at fault here for this. They simply are not being taught they need specialized care that you can’t get free in most instances.

    -from Job Corps Fraud

    I saw the same at Shriver. I wondered, and still do, what makes good people stay and work for a corrupt company? It is fear and manipulation. The employees are beaten down to believe they are worthless and the kids are just numbers to represent the $75 per day Adams and Associates and other greedy contractors receive for housing each student in sub-standard educational systems. Thanks for writing.

    Filed under: Adams and Associates, Contractors, Job Corps, Job Corps Centers, Little Rock Job Corps, OIG Reports, Reader's Comments, , , , ,

    Jacksonville and Earle C. Clements Job Corps Centers and Accounting Audit Findings (OIG 2005)

    From 2004 – 2005 the Office of the Inspector General performed an audit of 12 Job Corps Centers
    WHY READ THE REPORT Read the report here: M.D. Oppenheim & Company, under contract to the U.S. Department of Labor, Office of Inspector General, conducted a performance audit of Job Corps Center operating costs at 12 contractor operated Centers for the period October 2004 through March 2005. Center operating costs are reported monthly to the Office of Job Corps on Form ETA-2110, Job Corps Center Financial Report, and include direct Center expenses such as Center staff salaries, student food, student clothing, utilities, and medical expenses, as well as contractor fees and indirect general and administrative expenses. The audit was performed in conjunction with the audit of the U.S. Department of Labor’s Consolidated Financial Statements for Fiscal Year 2005.
    there was a lack of adequate internal controls over program expenditures at the Earle C. Clements Job Corps Center;
    there was improper recording and reporting of indirect administrative costs at the Jacksonville Job Corps Center; and
    journal entries were not properly approved, adequately supported, or correctly recorded at five Job Corps Centers.
    Instances of noncompliance such as these can result in overbilling to the government and an increased possibility of fraud through the manipulation of accounting records.
    Jacksonville Job Corps is operated by Applied Technology Corporation and Earle C. Clements Job Corps is operated  by Management and /Training Corporation.

    
    

    Filed under: applied Technology Corporation, Earle C. Clements Job Corps, Fraud, Jacksonville Job Corps Center, Job Corps, Job Corps Centers, Management and Training Corporation, OIG Reports, , , , , , ,

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    What’s On this Website?

    Make sure to click on the individual categories listed on this page... *Office of the Inspector General (OIG) Audit Reports showing number manipulation, fraudulent statistics and false inflation of numbers of graduated students... *Legislative and Congressional Reports detailing testimonies from Senators and Congressmen that Job Corps is inneffective... *Newspaper articles and books about Job Corps

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