August 2014 - An Ounce of Prevention: A Guide for Combating Fraud in Construction
By: Sara P. Bryant
The Construction Lawyer Journal
Sopranos, American Hustle, and Ocean’s Eleven. Many such plots end with the lovable fraudster duping the evil corporate empire, outsmarting the law, and disappearing to a tropical paradise with the ill-gotten gains.
But the fraud of the silver screen should not distract us from the fraud that happens every day. As we know from the nightly news and scandals such as those involving Bernie Madoff and Enron, fraud is nothing more than a theft, a criminal act with real victims. Fraud hurts corporations and real people and is rampant in all industries, including, and maybe especially, construction.
With this in mind, this article is intended to provide:
- An understanding of who commits fraud and, more specifically, occupational fraud and how it manifests itself in organizations within the construction industry;
- An account of some of the unique legal exposures that construction companies face, especially where many projects receive some government funding; and
- A discussion of proactive and remedial measures to prevent fraudulent behavior, detect problems early, and minimize the impact of fraud within a project or organization.
Click here to read the full article.