The GAO did a secret report in 1976 properly named: Fraud in Government Programs: –How Extensive Is
It? –How Can It Be Controlled? The study was a steady stream of T.V. news programs which reported
outrageous government frauds: The Navy payed $435 for a claw hammer and $640 for a toilet seats
(these were discussed in the 1984 Presidential debates.)
The Defense Department reported that half of the 100 largest defense contractors, 9 of the top 10,
were being investigated for multiple frauds. The report identified the False Claims Act as the only
way government had contained fraud. Nobody knew the amount of taxpayer dollars lost to fraud from
1943 to 1976, as the post WWII generation “Boomed.”
To make matters worse, government workers were prohibited from reporting fraud. If for they did,
they would be fired with no recourse. This fraud study showed that Social Security, including
Medicare and Medicaid, accounted for 46,326 of the 77,211 sample fraud cases, This report was not
released to the media, which continued reporting wastes, frauds and abuses
A year later October 12, 1978, Congress knew fraud was rampant in the 12 largest government
agencies. To address this, they passed legislation to 1) end fraud or 2) fine or jail any
government employees who defrauded “their” Federal agency or program. This was mainly aimed at the
four service branches and Medicare and Medicaid.
Congress passed the Inspector General Act of 1978; “to conduct and supervise audits and
investigations relating to programs and operations of the 12 Senate confirmed Departments
[excluding Justice and Treasury] and report to provide leadership and coordination and recommend
policies for activities designed, to promote economy, efficiency, and effectiveness in the
administration of, and to prevent and detect fraud and abuse in, such programs and operations; and
to provide a means for keeping the head of the establishment [agency] and the Congress fully and
currently informed about problems and deficiencies relating to the administration of such programs
and operations and the necessity for and progress of corrective action; there is established, in
each of such establishments [agencies] an office of Inspector General.”
https://www.ignet.gov/sites/default/files/files/igactasof1010(1).pdf
Regarding Justice Department Fraud Statistics, whistleblower cases are reported as Non-qui Tam
cases. The number of cases rose to 73 agencies. Additionally, the Inspector Generals, recovered
smaller amounts. These case details are never publically disclosed or reported by Justice or agency
press releases, unless becoming publicly known su h as Dan Ellsberg, Mark Felt,
Katherine Mitchell, Edward Snowden or Julian Assange.