IT Services Vendors Targets of State Fund Looting
Major technology vendors with known service contracts with four U.S. states were major targets of a $4 million criminal scheme involving illegally set up company entities and wire transfer accounts, according to the Dept. of Justice.Three suspects accused of a scheme to illegally transfer government funds out of West Virginia, Massachusetts, Kansas and Ohio to fake accounts of legitimate technology companies were sentenced Aug. 19, according to a U.S. Department of Justice report. The well-known enterprise technology services vendors included Deloitte Consulting, Unisys, Accenture and Electronic Data Systems, which is now owned by Hewlett-Packard.
The conviction follows a 2008 investigation into an international fraud ring, which used money laundering tactics, wire transfers via money mules and targeted companies that were known for major technology contracts with these state contracts. The criminal scheme collected nearly $4 million dollars by filing documents for dummy entities of these legitimate companies with illegitimate bank accounts in the name of these vendors. Several states did route money to these dummy accounts.