Fraudsters stand to siphon off $120 billion or more of the federal infrastructure money flowing to states and local governments for roads, bridges, broadband and other projects over the next five years, some experts predict.
At least 10% of the total $1.2 trillion in infrastructure funding could be used fraudulently, estimates Stephen Street, president of the Association of Inspectors General, a nonprofit membership group.
“Our experience has always been when you have a large amount of money — and this is pretty gargantuan — there will be an element of fraud built in,” said Street, who also is Louisiana’s inspector general. “It will take many forms: false documentation, being reimbursed for monies never spent, phony records.”
