State auditor critical of GOER in grant money case

State auditor critical of GOER in grant money case

Posted: Updated:

PHOENIX (AP) - Auditors say the Arizona Governor's Office of Economic Recovery didn't do a sufficient background review of a businessman accused of defrauding the state of $250,000.

The state Auditor General's Office released its report Friday on an investigation of theft and fraud schemes involving grant monies.

A state grand jury has indicted AT Security Service's top executive on 12 felony counts of theft, fraudulent schemes, forgery, false filing, identity theft and illegal control of an enterprise.

Auditors say the executive got the money in September 2011 to relocate the company to Arizona. But they say AT's California headquarters and its more than 300 employees didn't exist and the executive used the $250,000 for his personal use.

Auditors say the GOER "failed to exercise an appropriate level of oversight and due diligence."

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Powered by WorldNow

KTBC FOX 7
119 East 10th Street
Austin, TX 78701

Phone: (512) 476-7777
Fax: (512) 495-7001

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices