November 2, 2011

Inspector General Launches Criminal Probe Into More Than 100 Energy Dept. Loans Issued Out Of The 2009 Stimulus Funds aka Recovery Act!!!

The Daily Caller
written by C.J. Ciaramella
Wednesday November 2, 2011

Solyndra is being investigated by the FBI, but that may just be the tip of the shovel-ready iceberg.

The Department of Energy is investigating more than 100 potential instances of criminal abuse of stimulus loan monies, according to the department’s Office of Inspector General.

In prepared testimony before the House Oversight and Government Reform Committee Wednesday, Energy Department Inspector General Gregory Friedman said his office has launched more than 100 probes into possible criminal activities related to the 2009 stimulus funds behind the loans.

Friedman said the investigations used “various schemes, including the submission of false information, claims for unallowable or unauthorized expenses, and other improper uses of Recovery Act funds.”

The investigations have already led to five criminal prosecutions and more than $2.3 million in recovered stimulus funds, Friedman said, including “a series of cases involving fictitious claims for travel per diem resulting in the recovery of $1 million alone in Recovery Act funds.”

Friedman’s office and the FBI are also investigating possible criminal activity related to Solyndra, the now-bankrupt solar company that received a $535 million loan from the Energy Department.

While Friedman declined to comment on the Solyndra investigation, he attacked the DOE loan program in general. (RELATED: Financial turmoil grips two more green companies receiving federal loan guarantees)

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