Overview
- State auditors concluded DHS had long-standing authority to investigate EIDBI kickback allegations but closed three such complaints without inquiry.
- An error dating to 1995 in DHS administrative rules misdefined fraud and left unclear whether payments could be suspended during kickback investigations.
- The review said the inspector general generally took appropriate actions and that most decisions examined were reasonable based on available information.
- DHS says it will seek to add kickbacks to its fraud definition through legislation that could take effect Aug. 1, with rulemaking as a fallback that could take 12 to 24 months.
- EIDBI spending surged from $38.1 million in 2020 to $324.9 million in 2024 as federal probes and prosecutions continue, including a December guilty plea in a $14 million scheme involving alleged kickbacks.