OIG Annual Report 2021: Recoveries

Part III of the Office of the Inspector General's 2021 Annual Report

Overview

Often, the Office’s efforts result in state and local governments recovering funds that properly belong to them. These recoveries take different forms, including settlements, consent judgments, court-ordered restitution and repayments. The Office’s referrals, reviews and investigations also lead to the imposition of fines and civil penalties against individuals and organizations. The Office’s work also leads to the prevention of improper payments.

Since 2012, the Office’s work has resulted in more than $34.2 million in court-ordered restitution and settlement agreements. These recoveries came from vendors, organizations, elected officials and other individuals. These recoveries have affected numerous aspects of government, including education, housing, human services, municipal administration, public safety and transportation. The work of the Office has also led to fines and penalties of $120,800. Over the same period, the Office has identified $72.9³ million in potential cost savings and wasteful spending of public dollars. See Figure 1 below.

CASE	Amount
Brookline Housing Authority: Information and Technology Services	$113,000
Department of Transitional Assistance: TAFDC Eligibility	$25,000,000
MassDOT: Fleet Vehicle Operations	$4,246,062
MassDOT: Toll Road Access	$985,942
MassDOT: Turnpike Emergency Management Services	$1,004,460
MassDOT: Veterans Memorial Bridge	$20,000,000
MassHealth: Non-Custodial Parent Insurance Coverage	$17,500,000
Massport: Janitorial Supplies	$340,000
Methuen: Police Contract	$3,709,879
Total	$72,899,343

Figure 1. Potential Cost Savings and Wasteful Spending Since 2012.

In 2021, the Office’s investigations and reviews resulted in $7,915,956 in restitutions and settlements. See Figure 2 below. Additionally, the Office’s work relating to a Methuen Police Department contract led to the city cancelling it. City officials estimated that cancelling the contract saved the city $3.7 million. Further details about these matters and those listed in Figures 1 and 2 appear throughout the rest of this report.

CASE	Type of Recovery	Amount
Genoveva Andrade	Fine	$50,000
Kenneth Berg	Restitution	$8,460
James Canty	Settlement	$3,409
Jasiel Correia	Forfeiture	$566,740
	Restitution	$311,340
Antonio Costa	Forfeiture	$107,550
	Fine	$10,000
Manuel Duran	Settlement	$6,000,000
Francois Fils-Aime	Restitution	$10,000
Sean Hoye	Settlement	$37,000
Christopher Kudlay	Settlement	$1,957
Kevin Maple	Settlement	$45,000
Stephen Mihalek	Settlement	$23,593
Jason Morris	Restitution	$4,354
NEL Corporation	Settlement	$700,000
	Restitution	$9,402
Carlos Nunez	Settlement	$7,247
John O’Grady	Settlement	$3,208
Katelynn Sullivan	Restitution	$11,500
Keith Sweeney	Settlement	$1,496
Raymond Thompson	Settlement	$3,700
Total		$7,915,956

Figure 2. List of 2021 Recoveries and Fines

³ This figure includes $25 million (TAFDC Eligibility) and $17.5 million (MassHealth Non-Custodial Parent Insurance Coverage) of potential cost-savings for the Commonwealth annually.

Date published:	April 29, 2022