Calif. state audit shows bribery, waste

Dec. 12, 2012 at 5:58 PM

SACRAMENTO, Dec. 12 (UPI) -- A bribery scam that cost two California state agencies thousands of dollars is among nine instances of fraud or poor management in a new state report.

Each example in the auditor's report was exposed by whistle-blowers, the Sacramento Bee reported Wednesday.

The bribery scheme involved two California state employees, the Secretary of State's Office and the Franchise Tax Board. Employees of the Los Angeles branches of the agencies received cash payments between 2006 and 2008 from a private courier, who in turn obtained letters for its clients without paying document fees. Both state employees and the courier were convicted of bribery and ordered to pay restitution totaling $227,000, the newspaper said

Other instances mentioned in the report include a Economic Development Department employee, and two accomplices, bilking the state unemployment insurance system of $93,000 in illicit payments; wasteful reimbursements to a state university employee; and a $118,650 payment of overtime to 18 employees of the California State Athletic Commission.

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