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Preventing Fraud and Mismanagement in Government by Jonathan R. Peters, Joseph R. Petrucelli

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Chapter 5Fraud in Public Agencies: Horse Trading or Stealing?

“Everybody is a political person, whether you say something or you are silent. A political attitude is not whether you go to parliament; it's how you deal with your life, with your surroundings.”

—Paulo Coelho, Brazilian novelist

THIS CHAPTER EXPLORES the complex interactions and policies of the public serving agencies. The focus here is on the potential to commit individual fraud and the methods used by fraud perpetrators. Understanding the motivation for fraud and the various aspects of public corruption is key in recognizing and preventing them. The use of case studies illustrates the broad portfolio of fraud and corruption practices in the United States. This chapter introduces readers to government fraud and will help them understand why fraud can happen. Gaining a solid foundation of how to prevent, deter, and detect fraud is key in understanding how it happens despite public scrutiny and legislative body and multiple agency oversights, not to mention the media attention it generates when discovered. Fraud is first and foremost a people ...

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