Job Corps Fraud Blog

Nationwide mismanagement of Job Corps calls for action!

Some Job Corps Centers Full of Violence, Drugs and Fraud

Suggested Video from Koadey Kambell

Filed under: Job Corps, , ,

How To Use the Job Corps Fraud Website

There are many resources on this website that I’d like to familiarize our readers with:  At the top of the home page you’ll see a “Browse by Topic” tab.  If you click on the tab and scroll down to the list of Job Corps Centers you can see if your center has been in our news. There are also interesting stories about the infamous contractors who make a profit running the various Job Corps Centers throughout the US (make sure to read about MTC Corporation and Adams and Associates two of our most notorious operators).  This is also where to find links to OIG Reports.  The Office of the Attorney General is charged with the responsibility of investigating claims of fraud and integrity abuse at Job Corps Centers; they submit their reports to Congress twice a year and every year, they produce juicy reports on the various Job Corps Centers, some even with pictures of mold and falling down ceilings in dormitories… makes for very interesting reading. 

Last but not least, find the column that lists “PAGES”  on the Home Page.  Make sure to read, “Our Stories” and “Complaints”, which details how to file a complaint against your Job Corps Center.  There is a wealth of information here, we hope to serve the public through this website.  We also appreciate stories sent to us privately about your Job Corps experience.  These will not be published unless you ask us to and we will never give out your name or personal information.

-Andrea, for Job Corps Fraud

Filed under: Adams and Associates, Contractors, Job Corps, Management and Training Corporation, ,

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, , , , , ,

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, , , , , , ,

Repost: Senator Tom Coburn’s 2006 Congressional Record Remarks of Job Corps Documented Fraud, Abuse and Waste

MAKING EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR THE FISCAL YEAR ENDING SEPTEMBER 30 2006

Text From the Congressional Record

Coburn, Tom [R-OK]
Begin 2006-05-03 10:07:32
End 10:08:03

Mr. COBURN. Mr. President, I intend on withdrawing this amendment. I wish to make a few points before I do so.
In the supplemental bill, the Job Corps receives a direction that the Department of Labor can’t manage it, can’t use the resources to manage it. There are documented errors and documented fraud within it.
Mr. President, section 7017 of the Emergency Supplemental would mandate that Job Corps operate with less accountability. Specifically, the language would make Job Corps the only program out of 100s to be operated out of the Secretary’s office with direct contracting authority.
The Office of the Secretary of Labor does not have the staff or resources to effectively manage and conduct oversight on the Job Corps. The language of Section 7017 forbids the Secretary from shifting oversight and management personnel from any other support office in the Department of Labor. Secretary Chao is forbidden to utilize the same oversight and management that every other program normally receives from other support offices within the Department.
Section 7017 ignores recommendations from the Government Accountability Office and the Inspector General that warn against the dangers of waste, fraud, and abuse that will go undetected in the Job Corps program when one office controls all aspects of a contract-drafting, soliciting, bidding, and managing. The incestuous relationship between the contractors who operate the Job Corp program and the program officers operating the program will have no independent oversight to guard against improper payments, improper use of resources, fraudulent performance reporting resulting in fraudulent salary bonuses, and non-compliant accounting and record keeping.

Secretary Chao is trying to clean up the Job Corps program so that it effectively serves low income teenagers and young adults with a residential job training program. The Job Corps program needs accountability. According to the Office of Job Corps, the program failed to have aggressive monitoring of performance data making evaluations of the program’s effectiveness unreliable.

The Job Corps contractors are reporting misinformation regarding the number of students that successfully graduate or receive G

EDs. The contractors fail to report that almost 40 percent of the students who go through the program fail to obtain a GED or diploma. This results in fraudulent bonus increases to the contractor’s pay.
The program fails to report that the median stay of a student at a Job Corps location is 8 months, while it takes at least 12 months to successfully obtain a GED. The program also fails to accurately report how many students successful receive

job placement into the skilled jobs for which the Job Corps is supposed to equip the students. They fail to report that only 5 percent of the graduating students are placed in apprenticeships for skilled jobs. The contractors incorrectly consider job placement in unskilled jobs and the military–(obtainable without a high school education)–as benchmarks for success. This results in fraudulent bonus increases to their pay.

Examples of mismanagement illustrated in past Inspector General Reports include doctoring of program performance resulting in bonus pay, unethical use of resources, lack of cost controls and resource management. These examples makes the point for Secretary Chao–that the Job Corps program is in desperate need for accountability and oversight.

The September 30, 2005 Inspector General report, San Diego Job CORPS Center: Student Attendance and Training Data Overstated, stated that the number of vocational completions was overstated by over 50 percent. Training records did not support that students had completed all the vocation’s tasks with an appropriate level of proficiency.
In the March 30, 2005 Inspector General report, Kittrell Job Corps Center: Manipulation of Student Attendance and Training Records, the Inspector General found that Kittrell managers manipulated student attendance and training records to improve the center’s reported performance. Reported performance of high school diploma attainment and job placements was also was not reliable. This unreliable data affected Job Corps financially because reimbursed operating expenses and incentive fees paid to contracted center operators and based on reported performance.In the 2001 independent auditor’s report on the schedule of Job Corps expenses for the Turner Job Corps Center, the Inspector General found inadequate controls over payroll processing, that included hiring two instructors without proper credentials and keeping inaccurate records of leave. There was also lack of accountability over inventories of consumable supplies, evidence that the center underreported medical and dental expense, and the purchase of property and equipment that Department of

Labor did not approve prior to acquisition.

In the January 31, 2000 report entitled OIG Questions $1.3 Million of Additional Costs Claimed by Contractor Report No. 18-00-003-03-370, the Inspector General found that the contractor Will H. Hall & Son, Inc. received an additional $2,365,622 due to delays at their construction site. The Inspector General found that this contractor failed to substantiate its claim that various events under the Department of Labor’s contract constituted compensable construction delays caused by the Department

of Labor. Certain amounts claimed were either double counted as both direct and indirect costs, already covered under the original firm fixed-price contract, or based on estimates instead of actual costs incurred.

Section 7017 of the Emergency Supplemental will virtually guarantee that we will see many more examples of [Page: S3939]

waste, fraud and abuse within the Job Corps program. Furthermore, why is the Senate being asked to make a program change to a 40-year-old program within an Emergency Supplemental bill? Why hasn’t the Department of Labor been consulted in making this unprecedented move away from accountability? Why hasn’t the Appropriations Committee or the Committee

on Health, Education, Labor, and Pensions held a single hearing about this radical change to the Job Corps program?

Due to time constraints and my desire to move Senate business forward, I ask unanimous consent to withdraw my amendment.

Filed under: congress, Department of Labor, Fraud, government oversight, Job Corps, Job Corps Centers, Kittrell Job Corps Center, Legislative and Congressional Reports, Management and Training Corporation, number manipulation, Turner Job Corps Center, , , , , , , , ,

Readers Responses to Job Corps and National Labor Unions (Part One)

From Susie-

“i can’t say enough good things about job corps
i think you’re all way off base
my son was in job corps at 16
got his ged and drivers license
and finish one trade in office technology
his second(computer networking) trade lost their instructor to a higher paying job
so after 2 months and still no new instructor
no one would take half the pay of a jr college instructor
my son chose to
come home
and has always had a job till lately when the jobs just dried up every where
so he decided to go back to job corps
and try a more hands on trade
he is now 20 and was excited to go back
and likes the idea of a union
he’s going to learn heavy equipment repair
i dare anyone to argue the point that it takes a huge financial burden of the families of young adults just spinning their wheels
they pay for everything
and my son came home much more nature then when he left the first time
i’m sure the same will happen again.”

Response from Harold-

Susie:

“I would like to address a few of your comments.

You state “you are all way off base” and then you follow up with “after two months and still no new new instructor, no one would take half the pay of a junior college instructor, my son chose to come home.” Well, Susie that’s one of the things that we have addressed in this blog – sub-standard pay. You said it yourself – so how are we off-base?

Then you say “they pay for everything”. Do you know that “they” are the taxpayers of this country? The corporations that run these centers don’t pay anything, they just take money from the taxpayers and it through a their bank account and into their pockets.

We also state that there are many success stories coming out of Job Corps – but that doesn’t excuse the fraud on the part of the contractors and the government that is supposed to be monitoring these programs. I am willing to bet that you have not worked at a Job Corps Center; therefore, you are entitled to your opinion, however misinformed you are.

You can’t possibly have read all the information contained in this blog and think we are “off base”.”

From Sandra-

“Your son is 20 yrs old and spinning his wheels? Maybe if he actually had to pay for an education he wouldn’t be spinning his wheels so much. The huge financial burden taken off your family is assumed by taxpayers – it is not free. Maybe your son should be giving something back to the taxpayers that paid his way.

The GED at 16 was a short-cut for him. In some states, like New York, a Job Corps student can’t get a GED at 16, they can’t even take the test until they are 17. The Dept of Ed in NY states that they also have to have been enrolled in Job Corps for at least three months before they can take the GED test. But contractors have forced the Academic Depts on their centers to violate the state Dept of Ed’s rules and send students to take the test before they have been in the program for three months. This is so they can play their number manipulation games.

They also have forced the Academic Depts to ignore the state’s guidelines for reading and math levels before a student should take the GED. That’s why so many students fail the exam and have to earn a “high school” diploma from one of the on-line high school mills. This is also why GED testing sites (run by traditional educational institutions) are so upset with Job Corps programs – their students can’t pass the GED and these numbers are reflected in a test site’s statistics.”

Filed under: Contractors, Fraud, Job Corps, Reader's Comments, , , ,

Reader’s comment about Karl Rove, the CATO Institute and Job Corps

From Watergate-

“I never thought that I would say this but I’m glad that Karl Rove and the Cato institute is following the Job Corps Fraud Blog.  The stuff that goes on at the Job Corps Centers needs to be exposed.  The conclusion that I get when I look at this blog is that the same problems have plagued the Job Corps program throughout the history of the program.  This has been going on for more than forty years and nothing has been fixed.

The line that the tax payers have been fed about how the program helps youth out of poverty is a bunch of bs and most of the students that I worked with at Job Corps saw right through it. These students often let me know that they were only cash cows for the contractors and the federal government.  Read the rest of this entry »

Filed under: Drugs, Job Corps, Reader's Comments, , , , , , ,

Do We Have Ann Axe to Grind Against Job Corps? (comment from a reader)

Comment from a reader:

-“Many of your news articles are old, at least one year or more. I would wonder what axe you have to grind against Job Corps. Where is your facts on how much good the program has done. I know a lot of people who have gone through the program and are now making a good wage and paying taxes and not in jail or on welfare. Where is your information on that?”

Thank you for your thoughtful post.  One of  the intentions of this website is to be a one-stop place where parents, students, employees and interested persons could read “hard to find” or “buried” information about Job Corps.  I do plan on its having a complete history, in one place, of all the problems that have been going on with Job Corps since the program’s inception. Please come back as, some future posts may go back as far as  the 1960’s.  What we are discovering with our reading of the older posts is that nothing has changed in Job Corps. Its history is rife with fraud and manipulation of numbers.

Another of the the webisite’s purposes is to bring to light “the other side” of all the news propaganda that is constantly being published about Job Corps. Those of us who worked in the trenches at Job Corps know there are two sides to the newspaper stories which contain glowing accolades about Job Corps.  Many of the success stories you read everyday are being based on fraudulent facts. We can prove our facts. Job Corps can’t.

Case in point, your mis-statement that Job Corps students are “making a decent wage” is false.  The results of the DOL’s own national study contained the information that Job Corps students gains are insignificant compared to non-Job Corps attendees.  The DOL refused to publish this study for four years.  We also will be publishing a study from four years ago that proves that attending Job Corps has a negligible effect on Hispanic students.  How come these stories don’t make nation-wide news?  This program is costing the taxpayer 1.7 billion dollars a year.

Also, I certainly agree that a few students have been helped by Job Corps, but the vast majority are not.  The program needs to change so that more students are given an opportunity for an education where the focus is on quality and not on increasing contractor profits.

I encourage you to continue to read some some of the older articles at this site so you might understand how Job Corps past has led to its present history. Again, thanks for asking your important question.  Andrea for Job Corps Fraud

From Patrick-

Lynn, please read the comment posted yesterday by Larry King on the FB  Job Corps Fraud page.  He has been working with Job Corps for 20 yrs and knows what he is talking about.

Filed under: Comments, Job Corps, , , ,

New Facebook Page for Job Corps Fraud

There is a new Facebook page for Job Corps Fraud. Eventually the old page will be deleted because it is not easy to find as, it is linked to my personal facebook page. This new page will be indexed whenever someone types in the words “Job Corps Fraud.”

http://www.facebook.com/pages/Job-Corps-Fraud/387115008124

Please join this new group!

Filed under: Facebook, Job Corps, ,

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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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