Fort Berthold construction bribery scheme / payments and fraudulent invoices
Risk Mechanism
Bribery and kickback arrangements enabled a public official to steer construction awards, fabricate bids, influence other officials, and facilitate fraudulent invoice payments during project execution.
Case Summary
The U.S. Department of Justice reported that a former Tribal Business Council representative of the Mandan, Hidatsa, and Arikara Nation was sentenced for soliciting and accepting bribes and kickbacks from a construction contractor. In exchange, he helped the contractor obtain awards on the Fort Berthold Indian Reservation by fabricating bids, influencing other Tribal officials, and facilitating payment of fraudulent invoices.
Risk Lesson
This case demonstrates how bribes and kickbacks to public officials can compromise both contract award and payment controls during project execution. It highlights warning signs such as repeated awards to a connected contractor, fabricated or non-competitive bids, advocacy directed at other officials, and invoice approvals without adequate supporting records or independent review.
Reference
U.S. Department of Justice, U.S. Attorney’s Office for the District of North Dakota. (2022, November 21). Former Tribal Official Sentenced to Prison for Bribery Scheme. Available from: https://www.justice.gov/usao-nd/pr/former-tribal-official-sentenced-prison-bribery-scheme