UNCAC IRG Meeting Money Laundering: Enforcement and Case Studies from New York Rose Gill Hearn...

UNCAC IRG Meeting

Money Laundering: Enforcement and Case Studies from New York

Rose Gill HearnPrincipal, Municipal IntegrityBloomberg Associates

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o Conducted 5,500 corruption prevention seminars for NYC employees and vendors.

o Recovered $550 million+ for NYC.

o Made 6,700 arrests on corruption related charges.

o Issued and implemented 3,000 written recommendations to remediate corruption vulnerabilities.

o Reduced turnaround time for investigations by 55%.

NYC Department of Investigation (2002-2013)

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Case Study: Uncovered vendors’ overcharging NYC

o Contractors billed $700 million for automated payroll/timekeeping

system.

o DOI Forensic Audit: Follow the money.

o Findings:

Shell companies

Millions in kickbacks to top consultants

Money laundering

o DOI partners with federal prosecutors.

o Result: 8 convictions, $500M recovered for NYC, $40M forfeiture to

DOI, automated payroll/timekeeping system completed and in use.

Recovery of Public Money: “CityTime Case”

Source: U.S. Department of Justice