Assignment 4-3 Corruption Case

Assignment 4-3 Corruption Case - 1Assignment 4-3 Corruption...

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1Assignment 4-3 Corruption Case Assignment 4-3 ACCT341-E1WW Professor Filler February 5, 2012
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2Assignment 4-3 Summary For nearly a decade, a New Jersey furniture manufacturer has turned out well over $200 million worth of defective or useless furniture to the General Services Administration (GSA), the federal government’s housekeeping. Despite the years of complaints from GSA’s customers, about the crappy furniture, GSA did little to nothing to investigate the contractor Art Metal U.S.A. The furniture would fall apart, desks collapsed, and chairs had one leg shorter than the rest. According to the article, when federal employees complained to the GSA, they were ignored or rebuffed. “You didn’t fill out the right form.” GSA would say, or “You have to pay to ship it back to the contractor and wait two years and you might get a replacement.” After this behavior went on for so long, it gave rise to the speculation that bribery and corruption were the cause of the problem. (Wells, 2011). Corruption Schemes That Were Involved Conflicts of interest and bribery were the forms of corruption schemes that were involved in this case. According to Peter Roman, at the time, chief investigator for a subcommittee of the U.S. Senate Committee on Government Affairs remembers “one of the items that stood out where checks were made out to one company, but under three different names; I. Spiegal, Spiegal Trucking Company, and Spiegal Trucking Inc.”(Wells, 2011) After looking over the records and returned checks, the investigators discovered that the check made out to I. Spiegal (which was folded into threes, like one would fold to put in a wallet) was cashed by Isador Spiegal. The checks were not run through any company, and were written mainly for cash
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 341 taught by Professor Kamradt during the Spring '10 term at Franklin.

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Assignment 4-3 Corruption Case - 1Assignment 4-3 Corruption...

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