ILR School

Semi-Annual Report to Congress for the Period of April 1, 2010 to September 30, 2010

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[Excerpt] I am pleased to submit this Semiannual Report to Congress, which highlights the most significant actvities and accomplishments of the U.S. Department of Labor (DOL), Office of Inspector General (OIG) for the six-month period ending September 30, 2010. During this reporting period, our investigative work led to 175 indictments, 158 convictions, and $85 million in monetary accomplishments. In addition, we issued 38 audit and other reports which, among other things, recommended that more than $1.3 billion in funds be put to better use. OIG audits and investigations continue to assess the effectiveness, efficiency, economy, and integrity of DOL’s programs and operations. For example, during this reporting period, we found that in 32 years, the Mine Safety and Health Administration has never successfully exercised its Pattern of Violation authority. We also found that the Occupational Safety and Health Administration has not effectively evaluated the impact of hundreds of millions of dollars in penalty reductions as an incentive for employers to improve workplace safety and health. Moreover, we found that employers with a history of serious violations continue to receive reduced penalties and that up to $127 million in penalty reductions may have been inappropriate. Finally, we issued five audit reports related to the American Recovery and Reinvestment Act of 2009 during this semiannual period. Our investigations continue to combat labor racketeering and/or organized crime in internal union affairs, union- sponsored benefit plans, and labor management relations. For example, one major OIG investigation resulted in the sentencing of the former national president of the Brotherhood of Locomotive Engineers and Trainmen and former president of the International Brotherhood of Teamsters Rail Division to 18 months’ incarceration after he pled guilty to bribery in connection with a Federally-funded program and to interstate travel to carry on unlawful activity. Another investigation led to an investment advisor being ordered to serve more than nine years of imprisonment and pay restitution of more than $26 million to several union-sponsored pension funds after pleading guilty to charges of embezzlement and wire fraud. OIG investigations also identified vulnerabilities and fraud in DOL programs. One investigation resulted in a massage therapist being ordered to serve 78 months in prison and pay $1.6 million in restitution for her role in a health care fraud scheme involving the Office of Workers’ Compensation Programs. The OIG remains committed to promoting the integrity, effectiveness, and efficiency of DOL. I would like to express my gratitude to the professional and dedicated OIG staff for their significant achievements during this reporting period. I look forward to continuing to work with the Department to ensure the integrity of programs and the protection of the rights and benefits of workers and retirees.

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Office of the Inspector General; Department of Labor; audit; employee integrity; fraud; Congress


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