WorkSource DeKalb / DeKalb County, Georgia

Decatur, GA 2013--2016 Workforce Development
DOJ DOL_OIG False_claims_act Grant_fraud Federal_program_fraud
Penalty
$750,000

Outcome

DeKalb County agreed to pay $750,000 to settle False Claims Act allegations that WorkSource DeKalb misused Department of Labor On-the-Job Training grant funds between 2013 and 2016 by enrolling ineligible county employees — including firefighters who never heard of WorkSource and didn't qualify — in the OJT program to subsidize the county's own payroll.

Details

WorkSource DeKalb / DeKalb County, Georgia — OJT Grant False Claims (2013–2016)

Outcome: DeKalb County, Georgia agreed in May 2019 to pay $750,000 to settle False Claims Act allegations that WorkSource DeKalb misused DOL On-the-Job Training (OJT) grant funds by enrolling ineligible county employees — including 42 firefighters who never qualified for the program — to subsidize the county's own payroll rather than train citizens who needed assistance.

Between January 1, 2013 and December 18, 2016, DeKalb County falsely certified compliance with Department of Labor regulations related to OJT program enrollment and use of funds. Rather than using OJT funds to provide training for citizens who needed it most, the county used federal training dollars to subsidize its own government payroll.

At least 42 firefighters were enrolled in the OJT program despite being hired as the most qualified applicants through a competitive application process. These firefighters had never heard of WorkSource DeKalb prior to being hired, received no services from WorkSource DeKalb, and did not qualify for the OJT program. To induce them to sign OJT paperwork, WorkSource DeKalb employees provided free boots and gas cards — also purchased with DOL grant funds.

Beyond the Fire and Rescue Department, the settlement covered OJT fund misuse across at least 11 additional county departments: GIS, Human Resources, Emergency 911, District Attorney's Office, Board of Commissioners Clerk, Planning and Sustainability, Chamber of Commerce, Sanitation, Information Systems, Child Advocacy, and Voter Registration.

Primary Source: DeKalb County agrees to pay $750,000 to settle false claims act allegations related to its use of workforce training grants

How Crucible Prevents This

WorkSource DeKalb's scheme was systematic: ineligible county employees across at least 11 county departments were enrolled in the OJT program to redirect federal training dollars to county payroll. A Crucible WIOA participant eligibility audit hook would have compared enrolled participants against DOL eligibility criteria at the time of enrollment — not just at audit — surfacing the firefighters and other ineligible county employees immediately. A conflict-of-interest control flagging any situation where the workforce board administrator is also the employer of enrolled participants would have caught this self-dealing arrangement on day one.

Source: DeKalb County agrees to pay $750,000 to settle false claims act allegations related to its use of workforce training grants

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