# Red Flags of Infrastructure Fraud for Investigators Course

Canonical URL: <https://training.sdfm.org/courses/red-flags-of-infrastructure-fraud-for-investigators>

## Overview

The Infrastructure Investment and Jobs Act (IIJA) provides $1.2 trillion in federal spending over the next five years mostly in grants and contracts to states and local governments for public transit, railways, power grids, electric vehicles, electric buses, ferries, airports, waterways, climate change, broadband internet, environmental protection, drinking water and transportation safety. This program of fast-moving money with untested controls provides vast opportunities for fraud and waste. Investigators, Special Agents, grants, and contract managers at all levels of government will need to be especially vigilant of possible schemes and red flag indicators of fraud that rob the public of funds and performance.

## What you'll learn

- Understand the basics of IIJA, the agencies, the projects, and the spending.
- Understand the basics of fraud and investigators’ responsibilities.
- Identify fraud schemes and indicators that are common to federally funded projects.
- Understand the federal, civil, and criminal statutes that fraud schemes violate.
- Understand the basics of control standards, applications, and indicators of control weaknesses and vulnerabilities.

## Curriculum

#### Module 1: Purpose and Scope of the Infrastructure Investment and Jobs Act (IIJA)

- Summarize the IIJA’s aims, scale ($1.2T), and five-year funding horizon.
- Identify major funded sectors (roads/bridges, transit, rail, energy, water, broadband, resilience).
- Review the high-level spending plan and responsible federal agencies.
- Note links to the American Rescue Plan and implications for workforce/readiness.

#### Module 2: Investigator’s and Reviewer’s Responsibility for Fraud Awareness and Detection

- Clarify responsibilities under GAGAS/Yellow Book, CIGIE, AICPA (SAS 22/99), and related laws.
- Define fraud and elements; contrast fraud with waste and abuse.
- Apply professional skepticism: assess risk, controls, and environmental red flags throughout engagements.
- Understand reporting expectations for internal control, compliance issues, and suspected fraud.

#### Module 3: Fraud Schemes and Red Flags

- Recognize common IIJA fraud types: defective labor/pricing, product substitution, billing schemes.
- Detect collusion (bid-rigging, rotation, suppression, market division) using bidding/price patterns.
- Spot operational red flags: poor documentation, unusual trends, fictitious vendors, altered records.
- List evidence sources to corroborate suspicions (timecards, invoices, delivery records, payroll data).

#### Module 4: Federal Statutes and Remedies on Fraud Applicable to IIJA Projects

- Link schemes to statutes: 18 U.S.C. §§ 371 (conspiracy), 641 (embezzlement), 1001 (false statements), 1341/1343 (mail/wire fraud), 201 (bribery), and FCA.
- Introduce RICO, antitrust (bid-rigging/price-fixing), and program-specific offenses.
- Differentiate criminal, civil, and administrative tools: PFCRA, suspension/debarment, and referrals.
- Outline evidentiary needs to support prosecutions or administrative actions.

#### Module 5: Cases of Infrastructure Fraud

- Study 7 recent prosecutions (e.g., DBE pass-throughs, bid rigging, under-application of materials) and penalties.
- Connect case red flags to earlier modules to reinforce detection techniques.
- Discuss how fast-moving funds and weak controls enable repeatable schemes.
- Capture lessons learned to strengthen prevention, detection, and referrals.

## Schedule
- Aug 10, 2026 9:00am–5:00pm — Live Online
- Nov 5, 2026 9:00am–5:00pm — Live Online
- Dec 14, 2026 9:00am–5:00pm — Live Online

## Pricing

**Tuition:** $649