Is the law enforcement arm of the OIG, DoD

1
(No Transcript)
2
DCIS Jurisdiction

• Is the law enforcement arm of the OIG, DoD
• Has statutory law enforcement authority
• Investigates allegations of criminal violations
• Derives its authority from Public Law 97-252, DoD
  Directive 5106.1, and Title 10 Section 1585a

3
Mission
Protect Americas Warfightersby conducting
investigations in support of crucial National
Defense priorities.
4
DCIS Open Cases by Category
Open CasesTotal 1,603
FINANCIAL CRIMES Procurement Pay and
Allowance Anti-Trust Conflict of
Interest Gratuities
OTHER DRMO Environmental Security
Violations Program Management Irregularities Perso
nnel Action Fraud Commissary
5
DCIS Investigative Priorities
DCIS devotes investigative resources to

• Terrorism
• Product Substitution
• Cyber Crimes/Computer Intrusion
• Technology Protection/Transfer
• Other Categories of Fraud
• (Bribery, Corruption, and Major Thefts)

6
Technology Protection
Technology Protection Addresses

• Illegal diversion or movement of Strategic
  Technologies and U.S. Munitions List items to
  proscribed nations, and to terrorist
  organizations that pose a threat to National
  Security.
• Illegal transfer of technologies, weapons
  systems, components and programs.

7
Product Substitution

• Product Substitution generally refers to a
  product or service provided by a vendor to the
  Government, which does not conform to contract
  specifications by means of intentional
  misrepresentation and/or concealment of material
  facts.

8
Product Substitution Fraud

• Nonconforming Material
• False Certificates of Conformance
• Process substitution or Elimination
• Non-qualified and/or Counterfeit Parts (QPL)
• Lack of Required and/or Falsified Testing
• Lack of Qualified Personnel

9
Financial Crimes

• Defective Pricing
• Cost/Labor Mischarging
• Progress Payment Fraud
• Fast Pay Fraud
• Government Purchase Card
• Anti-Trust
• Economic Espionage

10
Definition of Fraud

• Fraud is characterized by acts of guile,
  trickery, concealment, or breach of confidence,
  which are used to gain some unfair or dishonest
  advantage. The object may be to gain money,
  property, or services to avoid the payment of
  money, property, or services or to secure
  business or personal gain or advantage.

11
How does fraud differ from traditional crime?
Defense Criminal Investigative Service
12
The Fraud Triangle
PRESSURE
FRAUD
OPPORTUNITY
RATIONALIZATION
13
Who Can Commit Contract Fraud?

• Vendor, supplier, contractor, or subcontractor
• Contracting Officer (CO) or his/her Technical
  Representative (COTR)
• Members of the Purchasing Team.
• Program Officer or Manager
• Receiving and shipping personnel
• Certifying officer or other accounting personnel

14
STANDARDS OF ETHICAL CONDUCT FOR EXECUTIVE
BRANCH EMPLOYEES

• Codified in 5 C.F.R. Part 2635
• Section 2635.101(b)(11) -
• Employees shall disclose waste, fraud, abuse and
  corruption to appropriate authorities.

15
(No Transcript)
16
(No Transcript)
17
DCIS Contact Information
Defense Criminal Investigative Service
(DCIS)European Post of Duty (EPOD)American Arms
Office Towers 6 Augusta Strasse, Room 5H365189
Wiesbaden, Germany Timothy Robertson