Prosecutors Watching for Stimulus Abuse in Calif.
Thursday, August 20, 2009
California Prosecutors in California say they will be watching for fraud and abuse in the distribution of federal stimulus money.
County and federal prosecutors joined California's new inspector general in Sacramento on Thursday to issue a warning to would-be criminals trying to scam the government. Acting U.S. Attorney Lawrence Brown said people who commit fraud could face up to 30 years in federal prison.
California is expected to get more than $50 billion from the American Recovery and Reinvestment Act. Inspector General Laura Chick said an estimated 7 percent to 10 percent of that money could be misused.
Sacramento County District Attorney Jan Scully said prosecutors will watch for padded contracts, kickback schemes, bid rigging and eligibility fraud.