On February 1, Comptroller Darlene Green started the city’s confidential fraud-reporting hotline to give city employees, vendors and the public a confidential way to report fraud.
During the first three months, the fraud hotline received 33 calls. Each call received a preliminary investigation by the comptroller’s internal audit section. Of the 33 calls, five were determined that no further action was necessary. Action taken on the other 28 calls includes:
Referred to a federal agency – 3
Referred to a state agency – 5
Referred to the St. Louis Police Department – 2
Referred to the City of St. Louis Department of Personnel – 5
Referred to other city departments – 5
Currently under investigation or review – 8.
“This report shows that the fraud hotline is working. It’s accomplishing the mission of providing a place for people to report suspected fraud,” said Green.
“I want to thank all of the tipsters for doing their part to protect taxpayer dollars, and I encourage anyone who suspects fraud in city government to contact the confidential fraud hotline at (314) 641-8600.”
The Association of Certified Fraud Examiners identifies three major categories of occupational fraud: theft, corruption and fraudulent financial statements. Other examples of fraud include activity involving questionable behavior or business dealings by members of the public, contractors, vendors, agents or city employees that put city revenue, property, information and other assets at risk of waste or abuse.
According to the Association of Certified Fraud Examiners 2004 Report to the Nation, anonymous hotline tips are the best way to uncover fraud. The report also determined that agencies with a fraud hotline typically cut their fraud losses in half.
To report fraud, call (314) 641-8600. Your call will be answered by a fraud investigator during business hours. You may leave a detailed voice mail message during non-business hours. The comptroller’s office guarantees the confidentiality of your fraud tip under federal and state law.
A complete, detailed explanation of the city’s fraud policy is available at www.stlouis.missouri.org.