Lawmakers Fault IRS' Weak Oversight For Contract Fraud

Law360, New York (June 26, 2013, 4:27 PM EDT) -- The House Oversight Committee criticized the Internal Revenue Service on Wednesday over contracts awarded to a company that allegedly gamed procurement rules favoring service-disabled veterans and economically depressed neighborhoods, saying that the IRS' weak oversight exposed half a billion dollars to fraud.

Lawmakers said that Strong Castle Inc. broke or bent contracting rules to gain privileged statuses as a Historically Underutilized Business Zone contractor and a service-disabled veteran-owned small business, and took advantage of its owner Braulio Castillo's decadelong friendship with an IRS contracting official....
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