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Courtesy of CBC news, 18 April 2013,
CFB Halifax police uncover suspected $900 K fraud
Court documents detail alleged plan to overcharge for parts
CBC News
Last Updated: Apr 18, 2013 6:44 ET
Military investigators believe they've uncovered a large-scale fraud involving civilian employees at CFB Halifax.
Court documents allege current and former employees colluded to overcharge for expensive parts for heating systems.
The Canadian Forces National Investigation Service calls their probe "Operation Aftermath."
Police allege a retired civilian employee of the Formation Logistics Unit created four Nova Scotia shell companies to bid on contracts.
The documents say those companies then competed among themselves to supply expensive heating parts to CFB Halifax.
A civilian contracting officer was allegedly in on the scheme.
He's suspected of chopping up large contracts into many smaller jobs to avoid scrutiny from Public Works and Government Services.
Investigators say between 2008 and 2011, the contracting officer gave out questionable purchase orders totalling $915,000.
They found examples of what they called 'gross overpricing', where a component worth $150 might wind up costing taxpayers nearly $500.
The court documents name five people: Three current civilian employees, a retiree and his wife.
The allegations have not been proven in court.
A representative of the Military Police confirms a fraud investigation is underway at CFB Halifax, but will not say more. The Canadian Forces National Investigation Service is taking the lead.
CFB Halifax police uncover suspected $900 K fraud
Court documents detail alleged plan to overcharge for parts
CBC News
Last Updated: Apr 18, 2013 6:44 ET
Military investigators believe they've uncovered a large-scale fraud involving civilian employees at CFB Halifax.
Court documents allege current and former employees colluded to overcharge for expensive parts for heating systems.
The Canadian Forces National Investigation Service calls their probe "Operation Aftermath."
Police allege a retired civilian employee of the Formation Logistics Unit created four Nova Scotia shell companies to bid on contracts.
The documents say those companies then competed among themselves to supply expensive heating parts to CFB Halifax.
A civilian contracting officer was allegedly in on the scheme.
He's suspected of chopping up large contracts into many smaller jobs to avoid scrutiny from Public Works and Government Services.
Investigators say between 2008 and 2011, the contracting officer gave out questionable purchase orders totalling $915,000.
They found examples of what they called 'gross overpricing', where a component worth $150 might wind up costing taxpayers nearly $500.
The court documents name five people: Three current civilian employees, a retiree and his wife.
The allegations have not been proven in court.
A representative of the Military Police confirms a fraud investigation is underway at CFB Halifax, but will not say more. The Canadian Forces National Investigation Service is taking the lead.
