A Quick Rundown of The Government Fraud Cycle

Many people wonder how government fraud schemes work.

Well, there’s no better way to learn -- than to watch one in the making, which is precisely what’s happening right now in Massachusetts.

A company where the husband of Rep. Ayanna Pressley, D-Mass., is a partner was selected for a nearly $2 billion deal to build a new courthouse in Springfield, Massachusetts — a decision now being challenged in court by rejected bidders who allege conflicts of interest tainted the process.

Conan Harris, who has been married to the Massachusetts Democrat for more than a decade, is a partner with John Barros in CoJo Real Estate, which is part of the Liberty Junction team selected in early July for the 40-year courthouse lease, according to the lawsuit.

The plaintiffs allege Barros’ role as interim executive director of the Massachusetts Convention Center Authority (MCCA) created a conflict of interest because several members of that agency’s board also serve on the Massachusetts Division of Capital Asset Management and Maintenance, the state agency that selected Liberty Junction.

How to View This Problem

Many state and federal agencies are literally organized crime outfits. They operate (out of necessity) in the dark.

I also have some experience in this area. I can layout some of what I’ve seen.

Let’s begin with an analogy.

A government engineered car, with no engine, is supposed to be driven from New York to California.

However, before anything can be done, the law states that it must be inspected. Consultants are hired/contracted. They conclude that the car needs new brake pads, it needs a transmission service, new air filter, fuel filter... By the time that's completed it needs new wiper blades, it has been years now (the wipers rotted during that time). In the end nearly the entire vehicle has been reworked. Why? Because everyone was getting paid.

But the car hasn’t been driven, in fact it’s never even been started.

That's a normal successful government program. It didn't produce anything, but everyone was getting paid.

You know another word for that?

Fraud.

You might ask, why didn’t anyone say anything about the fact that there was no engine? Why didn’t an outside group ever look into the project and follow up on the progress?

It’s simple, everyone is getting paid. Looking under the hood is not going to happen, because the project is going to be part of a 2,000+ page bill, that covers literally everything in the federal, or state government’s budget for a period of months or years.

Anyone who looks under the hood and sees that there’s no engine -- has nobody to turn to -- because everyone is getting paid. Inspectors general (IGs) don’t look into stuff like this until years after the fraud operation has already been run.

What’s The Pretext

How does this kind of scenario come about? First you propose a piece of legislation, that’s supposed to produce something. It can be anything, but it’s usually a large infrastructure project, high-speed rail, the broadband deal, bridges, EV charging stations, a courthouse, things of that nature.

Then behind the scenes, you have politicians determine which engineering/consulting groups they want to work with. The politicians write into the law nonsense requirements for those consulting contracts, things that are generally unassociated with the work to be performed (that way even through there’s an “open bid process,” they will get the “right” consultants contracted).

The legislation will also have an exhaustive list of nonsense steps, requiring years worth of consulting work to be completed before anything ever happens in the physical world.

The consulting groups are working behind the scenes with the politicians; part of their unspoken agreement is to have the consulting groups and their employees donate to the political campaigns of the politicians who awarded them the contracts. This can be done various different ways.

All of this is by design, because as long as those consultants can stay on the job, they can keep laundering tax-payer money into the pockets of the politicians who awarded them the contracts. Everyone keeps getting paid. And most importantly -- nothing is being built.

It’s organized crime. And yes, I’ve witnessed it first hand -- on more than one occasion.

If you enjoy my writing, you could buy me a Ko-Fi 😉👉

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