Iowa county out $500K from suspected scam

[cigaretteman]

Feb. 27, 2024 5:45 pm, Updated: Feb. 28, 2024 8:52 am

DUBUQUE — Officials in one Eastern Iowa county are trying to track down $524,284 they believe was stolen when an employee transferred it in response to a fake email message that appeared to be from the city of Dyersville.


Dubuque County officials announced the money was missing Monday, according to the Telegraph Herald. The payment came under the federal American Rescue Plan Act and was supposed to be distributed by Dubuque County to Dyersville, Radio Iowa reported.

But the county auditor and sheriff learned the money was missing when Dyersville officials asked about the status of the transfer after the county had already made it.


Auditor Kevin Dragotto said in a statement that an internal review determined that the city of Dyersville’s email system had been compromised. Dragotto said county employees received a request for the money from an official Dyersville email address, and the payment was sent.

The auditor's office said officials now believe that invoice was “orchestrated by a third party.”

Iowa county out $500K from suspected scam

The payment came under the federal American Rescue Plan Act and was supposed to be distributed by Dubuque County to Dyersville.

www.thegazette.com

 

[joelbc1]

Does the state now hire out an auditor to go over the books or does this duty fall under the guise of the state’s Auditor?

 

[Masterprime]

 

[millah_22]

Oof.

 

[Obviously Oblivious]

Does the state now hire out an auditor to go over the books or does this duty fall under the guise of the state’s Auditor?

It will likely be looked into by the State Auditor's office in conjunction with the criminal investigation.

There has to be some serious internal controls missing in the Dubuque County Auditor's office that an email would prompt a clerk in the office to approve a +$500,000 payment to be made without any other level of approval or due diligence.

 

[jamesvanderwulf]

They bought Lamborghinis, Ferraris and Bentleys.

And Teslas, of course. Lots of Teslas.


Many who participated in what prosecutors are calling the largest fraud in U.S. history — the theft of hundreds of billions of dollars in taxpayer money intended to help those harmed by the coronavirus pandemic — couldn’t resist purchasing luxury automobiles. Also mansions, private jet flights and swanky vacations.

They came into their riches by participating in what experts say is the theft of as much as $80 billion — or about 10 percent — of the $800 billion handed out in a Covid relief plan known as the Paycheck Protection Program, or PPP. That’s on top of the $90 billion to $400 billion believed to have been stolen from the $900 billion Covid unemployment relief program — at least half taken by international fraudsters — as NBC News reported last year. And another $80 billion potentially pilfered from a separate Covid disaster relief program.

The prevalence of Covid relief fraud has been known for some time, but the enormous scope and its disturbing implications are only now becoming clear.

Theft from the Covid relief plan known as PPP was even worse than we thought

The official in charge of Covid relief tells NBC News' Lester Holt that programs like PPP were structured in ways that were "an invitation" to fraudsters.

www.nbcnews.com

 

[RushProbst]

It will likely be looked into by the State Auditor's office in conjunction with the criminal investigation.

There has to be some serious internal controls missing in the Dubuque County Auditor's office that an email would prompt a clerk in the office to approve a +$500,000 payment to be made without any other level of approval or due diligence.

When the Nigerian Prince of Dyersville sends you an email requesting 500k you don’t ask questions. You cut the check.

 

[Obviously Oblivious]

They bought Lamborghinis, Ferraris and Bentleys.

And Teslas, of course. Lots of Teslas.


Many who participated in what prosecutors are calling the largest fraud in U.S. history — the theft of hundreds of billions of dollars in taxpayer money intended to help those harmed by the coronavirus pandemic — couldn’t resist purchasing luxury automobiles. Also mansions, private jet flights and swanky vacations.

They came into their riches by participating in what experts say is the theft of as much as $80 billion — or about 10 percent — of the $800 billion handed out in a Covid relief plan known as the Paycheck Protection Program, or PPP. That’s on top of the $90 billion to $400 billion believed to have been stolen from the $900 billion Covid unemployment relief program — at least half taken by international fraudsters — as NBC News reported last year. And another $80 billion potentially pilfered from a separate Covid disaster relief program.

The prevalence of Covid relief fraud has been known for some time, but the enormous scope and its disturbing implications are only now becoming clear.

Theft from the Covid relief plan known as PPP was even worse than we thought

The official in charge of Covid relief tells NBC News' Lester Holt that programs like PPP were structured in ways that were "an invitation" to fraudsters.

www.nbcnews.com

Federal programs are obviously lacking sufficient control and oversight. Shocking.

 

[StormHawk42]

Sounds like something the state auditor should look into. If the legislature lets him that is.