Covert operation a bungle, says GAO.Sometime before 1985, the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. conducted an undercover operation in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. to investigate illegal bookmaking bookmaking Gambling practice of determining odds and receiving and paying off bets on the outcome of sporting events and other competitions. Horse racing is perhaps most closely associated with bookmaking, but boxing, baseball, football, basketball, and other sports have and its ties to organized crime. The objective of "Project Layoff" was to develop investigative leads The term investigative leads refers to any information which could potentially aid in the successful resolution of the investigation. For example investigative leads pertaining to robbery offense might include: description of the perpetrator(s), visible impression(s) of for possible prosecutions. The Government Accounting Office claims Project Layoff was poorly planned and managed. Further, the GAO report says although the project yielded some useful resuits, it ended up making the IRS look bad. The report says the project lacked the proper recordkeeping systems, controls and management oversight to account for and safeguard the $22 million in bets and $2.5 million in cash involved in the operation. Possible misuse of funds by agents was alleged, but actual embezzlement embezzlement, wrongful use, for one's own selfish ends, of the property of another when that property has been legally entrusted to one. Such an act was not larceny at common law because larceny was committed only when property was acquired by a "felonious taking," i. cannot be proven. Project Layoff ended in 1985. Excluding salaries, it cost $376,000. Although the project's goal was not achieved, information from the operation was used in a second undercover operation in another IRS district office, which ultimately did lead to successful criminal prosecutions. The IRS has taken steps to strengthen undercover operation management. The GAO recommended the national office and the IRS controller be involved. |
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