Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

10/15/2012 (1 year ago)

Catholic Online (www.catholic.org)

Money was not used to create jobs and spur small businesses, feds learn

Millions of dollars intended as stimulus money to aid small businesses, grow local economies and create jobs has since been discovered to have been misspent, wasted or defrauded. The $840 billion stimulus plan has been greatly compromised due to misuse, leading to increasing the federal deficit and national debt. Federal investigators now have 1,900 investigations in progress to see how that money was squandered.

The $11.1 million only identifies money that is considered lost to fraud and does not include funds still under investigation or those recommended for reimbursement after audits identified misspending, officials say.

The $11.1 million only identifies money that is considered lost to fraud and does not include funds still under investigation or those recommended for reimbursement after audits identified misspending, officials say.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

10/15/2012 (1 year ago)

Published in Politics & Policy

Keywords: Stimulus programs, squandered, federalinvestigators, Energy programs


LOS ANGELES, CA (Catholic Online) - Government watchdogs have already secured nearly 600 convictions and judgments against people and companies accused of misusing stimulus funds.

More than three years after the American Recovery and Reinvestment Act was passed by Congress, the chief question now is how the money was managed early in the program. The investigations are certain to extend well into the next year as many the investigations reach their conclusion.

The total amount of money lost to fraud from the $840 billion stimulus program has been a paltry $11.1 million thus far. Vice President Joe Biden made reference to the figure as he defended the stimulus program from attacks from Republican Rep. Paul Ryan during the vice presidential debate last week.

The $11.1 million only identifies money that is considered lost to fraud and does not include funds still under investigation or those recommended for reimbursement after audits identified misspending, officials say.

A senior official familiar with the ongoing investigations by inspector's generals at federal agencies told newspaper reporters that he expects that dollar amount only to grow larger.

"These cases often take months or years, and we've got hundreds open right now across the government so that number is going to go up, probably by a large amount over the next 18 months," the official said, speaking only on condition of anonymity.

Several inspectors' generals have announced new convictions, prosecutions or audits, a sign that some of the investigations are growing closer to conclusions and judgments.

Some examples on how stimulus dollars were squandered for personal gain include:

The Energy Department inspector general reported last week it discovered the California energy commission collected two duplicate payments under a stimulus program that costs taxpayers $678,000. Investigators suggested that the money should be repaid.

In addition, a Louisiana group that received stimulus funds for Head Start programs for children had inappropriately spent nearly $1.2 million in federal funds to construct a new building that wasn't approved by federal officials.

The Energy Department inspector general also warns in its most recent semiannual report that the Western Area Power Administration, which received $3.25 billion in borrowing authority to help build transmission lines under the stimulus law, is at risk of losing significant money on a transmission project for wind power in Montana that it funded.

---


Pope Francis: end world hunger through 'Prayer and Action'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for July 2014
Sports:
That sports may always be occasions of human fraternity and growth.
Lay Missionaries: That the Holy Spirit may support the work of the laity who proclaim the Gospel in the poorest countries.



Comments


More Politics & Policy

In President Obama's war on religious freedom the people suffer another loss Watch

Image of A July 21 executive order has dealt a huge blow to the cause of freedom of religion in the United States.

By Catholic Online (NEWS CONSORTIUM)

President Barack Obama's July 21 executive order prohibiting discrimination based on sexual-self-identification has lead to strong criticism from several prominent U.S. bishops, calling the executive order "unprecedented and extreme." LOS ANGELES, CA (Catholic ... continue reading


Efforts against female genital mutilation could be thwarted by population growth Watch

Image of Due partly to community activism and legislation, the prevalence of FGM, which involves the cutting away of the external female genitalia, and the marriage of girls under the age of 18 has decreased slightly over the last 30 years, UNICEF said.

By Lisa Anderson, Thomson Reuters Foundation

Advances in fighting female genital mutilation, or FGM and child marriage could be offset by population growth unless the rate of progress increases, according to new data released Tuesday by the United Nations Children's Fund (UNICEF). (Thomson Reuters ... continue reading


FREE SPEECH VIOLATED: Tea party groups' lawsuit against IRS proceeds Watch

Image of Among the individuals named in the lawsuit is Lois Lerner, who headed the division that processes applications for tax-exempt status at that time.

By Catholic Online (NEWS CONSORTIUM)

They're not going to take it - and they're taking their claims to court. A federal judge has allowed a lawsuit by 10 tea party groups to move forward against the Internal Revenue Service. The judge rejected a request by the federal government to dismiss all the ... continue reading


'Suing the president is the right path to go down here,' Boehner declares Watch

Image of

By Catholic Online (NEWS CONSORTIUM)

The House of Representatives has no plans to use its own constitutional authority to withhold funding from actions by President Obama. House Speaker John Boehner (R-Ohio) indicated that if the president takes actions that exceed his constitutional authority, ... continue reading


Federal government says state death penalties are 'unconstitutional' Watch

Image of A federal judge has called California's death penalty unconstitutional. Surprisingly though, this judge is a conservative republican, a party that has long opposed federal overreach into state rights.

By Catholic Online (NEWS CONSORTIUM)

A federal judge ruled that California's death penalty is unconstitutional on July 16, claiming that the state's system is arbitrary, unfair, and cruel and unusual because of a lengthy process that leaves prisoners in the dark about their actual death row status. ... continue reading


'American people have a right to know,' Issa proclaims Watch

Image of Darrel Issa says that Simas' testimony was

By Catholic Online (NEWS CONSORTIUM)

Oversight Committee Chairman Darrell Issa of California said administration claims that White House political director David Simas was immune from testimony were "absurd" and "deeply disturbing." Defying a subpoena, Issa has now set up a new high-profile fight ... continue reading


Cheat on your taxes? It just got a lot easier Watch

Image of If you still fear a knock at your door anytime soon, it must be noted that one's chances of getting audited vary greatly and are based on income.

By Catholic Online (NEWS CONSORTIUM)

If you cheat on your taxes - or senselessly worry that some indiscretion in your recent past will have the Internal Revenue Service shortly breathing down your neck - things just got a little bit brighter. The GOP-controlled House has voted to slash the budget ... continue reading


While federal tax revenues are at an all-time high - federal government still running a deficit Watch

Image of What's the old saying?

By Catholic Online (NEWS CONSORTIUM)

While federal tax revenues continue to run at a record pace in fiscal 2014, their still no way out of the forest yet. The federal government's total receipts for the fiscal year closed last month at an unprecedented $2,258,565,000,000, according to the Monthly ... continue reading


President Obama accused of being insufficiently engaged in border crisis Watch

Image of President Obama wishes to make clear to parents and adults in Central America that there is no payoff for sending their children on the dangerous journey northward.

By Catholic Online (NEWS CONSORTIUM)

With hundreds, if not thousands of unaccompanied children streaming across the United States' southwest border with Texas - and more on the way - America's border security and policies may be in transition. Republicans and some Democrats have since accused U.S. ... continue reading


Put the spotlight - ON ME: Obama uses first person singular 99 TIMES in speech Watch

Image of In President Obama's recent speech, he used a first person singular, on average, every 12 seconds.

By Catholic Online (NEWS CONSORTIUM)

"I," "Me," sand "My" were words used by U.S. President Barack Obama in a speech vowing unilateral action. In fact, Obama used the first person singular a whopping 199 times. This figure did not account for instances when he quoted a letter from a citizen or ... continue reading


All Politics & Policy News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Jeremiah 2:1-3, 7-8, 12-13
1 The word of Yahweh came to me, saying,2 ... Read More

Psalm, Psalms 36:6-7, 8-9, 10-11
6 your saving justice is like towering mountains, ... Read More

Gospel, Matthew 13:10-17
10 Then the disciples went up to him and asked, 'Why ... Read More

Saint of the Day

Saint of the Day for July 24th, 2014 Image

St. John Boste
July 24: One of the Forty Martyrs of England and Wales. He was born at ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter