Showing posts with label fraud. Show all posts
Showing posts with label fraud. Show all posts

Tuesday, March 27, 2018

The Nearly Overwhelming Influence of Technology: only for dumbing-down or distraction?

edited 5/29/19
"Consumerism is Communism." -- Comment (circa 1960) made by a head of a Philadelphia area Chamber of Commerce president critical of the evaluations published in the magazine, Consumer Reports.[1]

Teaching Clever Folks to be Discreet. Outside the university, clever thinkers, purportedly so prized in academia, can often be tolerated only if the mouths controlled by them stay shut. This is called "discretion."

Why? Because, to begin, clever thinking may obstruct otherwise easy commercial transactions. On the still just legal side of that narrow boundary separating clever marketing from fraud, bigger profits are more easily extracted, in the short run, at least, from naïve, misinformed or confused customers. The 1960 "Consumerism is Communism" comment in the epigraph alludes to this.

But the concern that only commercial institutions fear criticism is somewhat dated. To examine a more recent rhetorical exercise on the theme that Big Business, hand-in-hand with Big Government, is crowding us all into "Communism," see How consumerism leads to "communism".

Clearly commerce is not the only area in which ignorance can be exploited. Clever folks have a habit of nosing around in various traditional realms. Our legal, religious, governmental and educational institutions all have their own dirty wash to hide. For example
a. Scientists persistently complain that much published research is sloppily done, or non-replicable, yet is still often celebrated as an important breakthrough. (See Seven Warning Signs of Bogus Science.)


b. Government regulatory agencies fall down in policing misrepresentation in financial transactions; or in medical exaggerations. (See
Why is the SEC Ignoring Its Greatest Asset in the Fight Against Corporate Misconduct?
)


c. Clergy who would impose a strict morality beyond the boundaries of their own congregations, themselves protect their confreres who indulge the vices they condemn in their flocks. (See The Catholic Bishops Lobby Against Legislation to Protect Children )


d. Lawyers and judges have colluded, for example, in facilitating incarceration of children in private prisons for payments from the proprietors. (See Pennsylvania Judge Sentenced For 28 Years For Selling Kids to the Prison System )


e. Educators and school governors have absconded with or misused monies given them in the name of reform. (See De-Regulation and Charter School Swindles)


f. Casinos prefer unthinking customers. (Why else the free drinks?) Clever players, e.g. card-counters, are ostracized and expelled from the gaming establishments. (See Local casinos use countless methods to discourage card counters.


g. Most ominous is that some institutions attempt to squelch whistleblowers or critics by adopting policies or laws that criminalize those who would reveal illegal or unethical goings-on within them. (See Silencing Whistleblowers.)

To reiterate: clever folks are tolerated only if the mouths connected to them stay shut -- or are being viewed on the Comedy Channel. Statistically, events of the types listed above may be but a small proportion of the activities of the gigantic enterprises they are found in. Happily, they still cause shock and outrage, since they are unexpected, because they are considered egregious even though they relatively small in scope.

Individual scandals of the types listed are often not paid much prolonged attention likely due to their overwhelming frequency -- there's always something new -- but also because there is little immediate issue of wealth involved. But such small misadventures will occasionally -- or always, in the supermarket tabloids -- be exaggerated as to their seriousness, especially if they make good media attractions.


Better Access to More Distraction? Perhaps it is the emphasis in our expanding culture of technology as the primary, if not the sole, hope for the future that has disemboweled our educational systems of the wisdom gleaned from traditional sources of moral, legal and educational knowledge. Or, it may just be a matter of ease of access to more entertaining options by a public generally not too interested in those issues. (We'd probably win any bet that more people play video games on a daily basis than watch The Science Channel.)


To take an optimistic perspective, easier access to information, true, false or otherwise, that new technology affords, answers an apparently vast curiosity possessed by multitudes of people enjoying ever more leisure time to indulge it. But is this accessibility making for smarter, better informed and wiser people? Recalling the concern about "teaching" clever folks to be discreet, we might well wonder how much and by whom smarter, better informed and wiser people are wanted.


All of the items on the list above involve attempts to shift authority, the recognition of trustworthiness and truth-telling, from more traditional sources to newcomers who hope to enjoy substantial gains in wealth and influence.

If we read widely -- another waning habit? -- we run across even Ph.D.'s in "hard science" disciplines engaging in intellectually ham-handed debate. For example, there is no end of quibbling as to whether brain-research bears on the question as to whether "mind" and "spirit" are separate. Similarly with the notions of "natural" and "supernatural." The participants in such arguments seem to define themselves as opponents without even checking first to see whether they mean the same thing with such words as "natural," "mind," "spirit" or "separate." Even less often do they bother to say, if they could, what kind of evidence they can offer that supposedly addresses the questions

Masking Struggles for Authority? Or Snatching For the Collection Plate? A more recent, more subtle grab for recognition is the attempt by technically trained practitioners in various "hard science" disciplines to replace older traditions as definers and arbiters of broad philosophical and religious concerns. (See Pseudo-Science: the reasonable constraints of Empiricism)

Perhaps the disregard for long-established procedures of investigation and debate are not so much oversights or sloppiness as indicators of a much more attractive pursuit, that is the purloining, the usurpation, even, of authority. But this usurped authority, not about the search for discovery or truth, but more intensely in the competition for benefits more familiar, more widely valued in our pluralistic, commodity-focussed culture: wealth and influence.

Cordially, EGR

Footnotes or References

[1] I have been unable to retrieve my original citation and its stated source either from a faded, distant memory or from the Internet. However, there is much similar to be found online using the search phrase, "consumerism is communism." -- EGR

Tuesday, March 6, 2012

Abetting Fraud in School Systems and Universities

updated 12/31/18
In a state where corruption abounds, laws must be very numerous.-- Tacitus
School systems, colleges and universities across the country get billions of dollars from the federal government on the strength of their accreditation by various professional and state organizations. Accreditation is taken as assurance that the school has met certain standards.


Federal false claims legislation has been used to penalize colleges and universities who have acquired accreditation by hiding their failings from accrediting organizations.

But often, the accrediting organizations are in cahoots with the institutions they accredit. They overlook severe deficiencies, if they even bother to note them. Members of accrediting site-visiting teams are colleagues, even friends, of faculty and administration of schools which are candidates for accreditation.

The track to accreditation has been greased by all of the following:
a. schools providing luxurious hotel rooms demanded by visiting teams well-stocked with expensive liquor;

b. six week’s advance receipt of the examiner’s questions so that “spontaneous” answers might be prepared, and skeletons locked away in hidden closets;

c. visiting team members who were students or friends of faculty in the candidate schools;

d. faculty threatened with dismissal or non-promotion should they bring up program violations of the schools under consideration for accreditation;

e. interference from local politicians to ward off disaccreditation when malfeasance was discovered;

f. direct interference in state-level agencies to block disaccreditation because of felonious activity by school administration, e.g. selling drugs.


Faculty in candidate schools seem to be (or pretend to be) unaware that their personal efforts in disregarding published school procedures, or hiding embarrassing violations, will have abetted a fraudulent claim when -- seldom, if -- their institution makes application for federal funds.

This misfeasance at some of the country’s biggest universities persists unchallenged by federal authorities for two apparent reasons:
1. many schools are seen to have formidable legal protectors, especially universities with law schools;

2. many investigators do not understand how responsibility is situated in the university and what might be indicators of violation -- often overlooked by otherwise highly competent lawyers with organizational experience only in the business world.
To examine these issues further, see Combatting Educational Corruption

Cordially,

-- EGR

Tuesday, January 24, 2012

Prosecuting Fraud in Education

edited 12/21/18
The Department of Justice and four states on Monday filed a multibillion-dollar fraud suit against the Education Management Corporation, the nation’s second-largest for-profit college company, charging that it was not eligible for the $11 billion in state and federal financial aid it had received from July 2003 through June 2011. -- New York Times August 8, 2011
A bitter though old lesson has had to be relearned by the complacent citizens of 21st century America: blind trust in our financial, religious and educational institutions, the sacred cows of our society, yields disappointment and scandal.


But when it comes to dealing with chicanery in higher education, there is a means for correction. For example, if a university receives federal funds because it is accredited, or has professional programs that are accredited, and if the conditions for accreditation are in fact not met, then those funds have been fraudulently obtained in violation of the Federal False Claims act.

The funds will have to be returned, fines are likely to be levied and the "whistle blowers" who provided information leading to successful prosecution under the act will receive a substantial percentage of funds recovered. This is not a rare occurrence.

Many law firms advertise their willingness to represent whistle-blowers in such cases, -- called qui tam cases, since the whistle-blower represents the interests of the government as well as himself or herself. But qui tam cases are far less frequent than those of us in higher education might expect: law firms seem to be hindered by their lack of knowledge as to how a university works.

Compounding all this is that accrediting organizations are often in cahoots with the programs they are supposed to examining, since accreditation brings in large fees or provides employment to the accreditors. (Law firm members, themselves, often are reluctant to take action against their alma mater or prospective university client.)

What might be done? First of all, law firms might adopt a more entrepreneurial attitude: it will take some upfront money and knowledgable consultancy to obtain evidence of fraud. But both the promise of substantial sharing in the fines leveled by the federal government, as well as the widespread fraud that takes place each year -- I would estimate that in the Philadelphia area alone a potential for several billion dollars in fines exists -- should make the risk worthwhile.

Secondly, …

------ For more on this, see "Combatting Educational Corruption"

-- EGR

Wednesday, August 3, 2011

Student Debt and Graduation Rates: mislinked indicators of value?

If forecasts were certain and wants, precious stones
We’d eat beef and chicken and never see bones.-- N. Fulano de Tal
In 1975 I interviewed for a position with a major private “educational research corporation.” My task would be to develop a description of a vocational-education project so that it could be replicated across the country. The already-in-place federally funded ($3 million) pilot project had a 100 percent job placement rate for its graduates. The corporation hoped that with an adequate description, a substantially larger grant ($41 milion) could be obtained.

I asked how it was possible to get 100 percent placement. My interviewer told me that this was done by offering prospective employers a stipend to offset future wages to be paid. No student was accepted into the program unless an employer had been found who had accepted the agreement.

When I asked how such arrangements could be replicated across the country, given that we did not control our economy the way the Soviets did, I received the reply, "Ed, that is the one question around here that we never ask."

I did not accept the job. Someone else did. The description was written up. The large government grant was secured. That late 1970’s project left has no traces. Its perpetrators have advanced in reputation and position.

Which is the better school?
a. Grumbling U which graduates 20% of its original freshman classes who then regularly find good jobs that enable them to pay off their student loans; or
b. Pensyl U which graduates 98% who afterward cannot find a job that enables the grads to pay off their tuition debts.?
Barring fraud in the recruitment process, wouldn’t you pick Grumbling?

Open admissions policies have long been promoted as providing opportunity to more people for higher education. But the graduation rates tend to be lower because many more are unprepared for college demands. Should colleges, or other schools be expected to do something about this? Do schools and colleges control the market for their graduates?

Reported in Education Sector’s Biweekly Digest of Aug 2, 2011, some are suggesting using a borrowing-to-credential ratio as an indicator of college value: the student-loan debt they have to repay after graduation divided by the percentage of students graduating. But this is like defining wealth (value) as currency on hand (diplomas) rather than asking what that currency might buy (access to high paying jobs -- or, maybe, something else). This overlooks systemic effects on the costs and benefits of credential attainment.

On the borrowing-to-credential ratio measure, if we assume their tuitions are pretty much the same, it seems that Grumbling is ahead of Pensyl. However, don’t a lot of other factors have to be evaluated? ? Would it matter if it turned out that with another year or two, the great majority of all students graduated?

How should any schools prepare for something, especially when it is not clear what they are preparing for? Our society changes quickly and there is little consensus on both specific ends and means in education. Why are schools to be held responsible for market outcomes they do not control?

For references and to examine these issues further, see

How much can school reform enhance a student's occupational fitness?

Cordially
--- EGR