Feds target misuse of stimulus cash

Federal prosecutors are investigating a dozen cases of possible fraud involving the $787 billion stimulus package, a USA TODAY review of government records shows. There are an additional 88 active investigations of potential misuse of that money, according to reports filed by internal watchdogs at 29 federal agencies managing stimulus funds and the congressional Government Accountability Office. Separately, GAO criminal investigators are reviewing nine cases, acting GAO head Gene Dodaro has said. The agency reports, which are required under the stimulus law to be filed monthly by the inspectors general, do not provide details on the investigations. However, Recovery Accountability and Transparency Board Chairman Earl Devaney said the allegations involve contract and grant fraud and include filing false statements and attempts by ineligible firms to get funding. "This is a pretty tempting pot of money for people to go after," Devaney said of stimulus funds...read more