Investigative Reports

A procurement manager was terminated from employment on May 21, 2021, after our investigation found she violated Amtrak policies by repeatedly mischaracterizing the relationship with and misrepresenting actions by our office to intimidate and coerce Amtrak employees and vendors from taking certain actions or into conducting certain actions on multiple occasions. Although the employee admitted to her misconduct, she was also evasive and provided inconsistent responses to our agents during her interview with us.

The investigation substantiated that a TVA employee negotiated employment with a contractor for whom he approved invoices; however, he did so with the knowledge and apparent support of TVA management. After becoming an employee of the contractor, he continued to approve invoices for the contractor (now his employer) as he had done while employed by TVA. While working for the Contractor, the subject potentially had direct access to the sensitive business information of vendors in direct competition with the employing contractor.The employee did not consult TVA Ethics for guidance on this matter while still employed by TVA.

The purpose of this report is to share with the U.S. Department of Education (Department) observations made by the Office of Inspector General (OIG) concerning institutions of higher education (IHE) that ceased to provide educational instruction in all programs of study (closed) and received or had access to coronavirus response and relief aid through the Higher Education Emergency Relief Fund (HEERF). We found that 17 IHEs that closed on or before December 31, 2020, applied for and were awarded a total of $4,912,675 of HEERF grants by OPE. Of these 17 IHEs, 14 drew down HEERF funds and 3 did not draw down any of their awards. Of the 14 IHEs that drew down their HEERF awards, 8 made drawdowns after the IHE closure date listed in the Postsecondary Education Participants System (PEPS). The total of these post-closure drawdowns was $1,261,329. In addition, 1 of the 14 closed IHEs that drew down funds made a draw of $364,715 one day before closing.

We investigated allegations that a National Park Service (NPS) supervisor took Government property for personal use and misused her official position. The NPS subsequently notified us that one of the supervisor’s subordinate employees also took Government computer equipment for personal use.We found that the NPS supervisor and two subordinate employees took Government property for personal use. We also found that the NPS supervisor misused two subordinates’ official time by directing them to perform work on her personal property for her personal benefit. Lastly, we found that park officials did not ensure that the subordinate employees received mandatory property disposal training.The NPS supervisor admitted guilt of felony theft and was accepted into a diversion program that, if successfully completed, would lead to dismissal of a felony theft charge. Based on that charge and an interim report of our findings, the NPS subsequently issued the supervisor a 14 calendar-day suspension without pay. She paid the NPS $3,964 in restitution.

We investigated allegations that an oil and gas production company claimed improper allowances for offshore Federal mineral leases in the Pacific Ocean. The company submitted royalty refund requests to the Office of Natural Resources Revenue (ONRR) for previously unclaimed oil and gas transportation allowances and gas processing allowances. The royalty refund requests raised suspicion at ONRR because the company had not claimed such allowances previously and because the royalty refund requests covered the regulatory maximum allowable period of 6 years.We found the company’s royalty refund requests were incorrect and poorly documented; however, we found no evidence the company intended to deceive or defraud ONRR. We found the company submitted claims on incorrect forms, improperly designated expenses associated with a pipeline it owned, and failed to provide ONRR with source documents that fully supported its royalty refund requests.We also found that the company owes unpaid mineral royalties to ONRR. The company reduced current Federal mineral royalty payments submitted to ONRR in an attempt to recoup funds included in its prior requests in anticipation that ONRR would eventually approve its claims for payment. As of April 2021, ONRR had denied the company’s royalty refund requests pending further review, and ONRR is continuing to work with the company to either approve the refund claims or recover any unpaid Federal mineral royalties.

The OIG investigated allegations that a Bureau of Indian Education employee improperly used school funds to update classrooms. We also investigated allegations that the employee personally benefitted from the renovation projects by improperly influencing the award of a Federal contract to their spouse to perform the interior design work for the projects.We did not substantiate the allegations that the employee used their position in an improper manner or that the employee or the employee’s spouse personally benefitted from any of the classroom renovation work that was completed. We confirmed that the school did not award any Federal contracts for the renovation projects. We also found no evidence the renovation projects violated school policies or Federal regulations.

DOL-OIG Investigations Newsletter Vol. XXXIII for the period of February 1 - March 31, 2021

An Amtrak Specialist based in Philadelphia was issued a letter of warning on May 4, 2021, for violating company policies by admittedly posting inappropriate and offensive images on her Facebook account that publicly identified her as an Amtrak employee, in violation of company policy.

A Yard Conductor based in Washington, D.C., was terminated on April 29, 2021, for excessive consecutive days of absence without authority. The employee was arrested on April 6, 2021, and remained in custody for at least a week on several charges. The case is pending in the United States District Court, District of Columbia.

Contractor approved temporary living allowance (TLA) for contract employee based on a claim of permanent residence when the residence claimed was actually owned by the contract employee’s father and rented at a low monthly rate that was paid sporadically. The contract between TVA and the contractor explicitly forbids the approval of TLA when the arrangement for the residence claimed is not part of an “arm’s length” transaction. The contractor was aware of its employee’s rental arrangement with his father and, yet, approved the payment of TLA which was subsequently billed to TVA.