The New Corporate Crime Wave

By | May 28, 2011

With all of the criminal investigation efforts being focused on Bernie Madoff and other financial fraud mongers, most of corporate America seems to think it has a “get out of jail free” card with respect to its own criminal activity. What has been building for several years is now out there in full force.

We have seen contracts posted for billing rates well below 1/3 of the actual going market rate for some time now. Usually the companies had a system in place which would allow pimps to present candidates at actual market rates, then have the manager manually reject them as being “too high”. While this was unethical, it was legal. The newest venture into time and cost savings is to install a system which physically will not let a pimp submit a candidate which is outside of your chosen rate range. The pimps have to sign an agreement saying they will abide by this application restriction. At this point, multiple crimes have been committed. If you live in Illinois you are used to hearing these two crimes talked about a lot…Price Fixing and Racketeering. I think we hold the international patent on both. We certainly have enough high profile trials putting people in prison for both.

There is a MAJOR difference between manually saying you won’t pay a price after a candidate has been entered into the system and having the system block all said candidates from entry. Anyone care to take a guess at one more place where that difference comes into play?

Once management decided they wanted to illegally use H1-B labor when there were hundreds, if not thousands of qualified U.S. Citizens around, they basically said they wanted to commit this other crime. Trouble is, if any evidence exists that qualified candidates actually existed and had applied, you can’t hire that $10/day person. What do you do Aurthur Andersen? Why shred the documents, of course! In this case, you deliberately block the documentation from being created. Now you can fill out that form for an H1-B and show them no qualified candidates existed for the position.

The additional crime is perjury. It happens on virtually every application justifying an H1-B visa and is a crime more widespread than the mortgage fraud. Thankfully, the only thing federal investigators need to do to make arrests is to find out which companies had a vendor management system which allowed for the blocking of higher priced submissions.


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About seasoned_geek

Roland Hughes started his IT career in the early 1980s. He quickly became a consultant and president of Logikal Solutions, a software consulting firm specializing in OpenVMS application and C++/Qt touchscreen/embedded Linux development. Early in his career he became involved in what is now called cross platform development. Given the dearth of useful books on the subject he ventured into the world of professional author in 1995 writing the first of the "Zinc It!" book series for John Gordon Burke Publisher, Inc. A decade later he released a massive (nearly 800 pages) tome "The Minimum You Need to Know to Be an OpenVMS Application Developer" which tried to encapsulate the essential skills gained over what was nearly a 20 year career at that point. From there "The Minimum You Need to Know" book series was born. Three years later he wrote his first novel "Infinite Exposure" which got much notice from people involved in the banking and financial security worlds. Some of the attacks predicted in that book have since come to pass. While it was not originally intended to be a trilogy, it became the first book of "The Earth That Was" trilogy: Infinite Exposure Lesedi - The Greatest Lie Ever Told John Smith - Last Known Survivor of the Microsoft Wars When he is not consulting Roland Hughes posts about technology and sometimes politics on his blog. He also has regularly scheduled Sunday posts appearing on the Interesting Authors blog.