QUOTE(Livyjr @ Mar 9 2005, 08:28 AM)
I did check into making the payment, which is not that much, BUT ....
The only way to pay, of course, IS WITH A CREDIT CARD, which since WE ARE ALL RICH IN AMERICA, everyone has, except .....
And here I am back, for the moment, and since this morning I have been doing some research under the search terms
"Paypal,scandal", which so far, has given me the following story.
And why am I now looking up
Paypal?
Well, if you want to post in here, you have to go to
Paypal to do so, and that name just rings bells and whistles and alarms in my head, as I recall some kind of scandal in my area involving what I recall as
Paypal, although I want to have that information in hand before I say more.
The reason for my concerns should be apparent from the on-going Choicepoint scam, and a new one just today involving data theft or sales of OUR personal information to criminals, from or by LexisNexis.
There is also some new scam out there involving data theft called "pharming", where the scam artists, and boy, does that ever describe what America is chock full of these days, the scam artists, or "BID-NESS MEN" are able to mine data, about us, and thereby steal OUR identities, as Chris Kapostacy and TV Channel 13 did to me all those years ago.
THEFT PAYS, here in this America of George W. Bush's, AND HONESTY AND INTEGRITY DO NOT!
In fact, up here in the corrupt Empire State of New York, any overt attempts at honesty and integrity on the part of licensed professional engineers acting to protect and safeguard life, health and property will be met with extreme violence, and will be punished to the fullest extent the corrupt laws in this State allow the thugs and politicians to get away with!
In the meantime, back to this story about Paypal: March 09, 2005 02:45 PM
Front Page Loudoun County, Leesburg, Virginia
"Town Leaders Pledge Probe In Credit Card Scandal"Dan Telvock
Sep 18, 2003 -- No one on the Leesburg Town Council thought another person would improperly use a town-issued credit card after a 1999 scandal that led to the resignation of the town manager and a councilman.
But what they learned over the weekend was that it can, and did, happen again.
Two days after a Sept. 10 request from Leesburg Today to review credit card charges made by Information Technology Director Michel M. Agujia, Town Manager Robert S. Noe said Agujia notified town leaders that he had used his town-issued credit card to buy the services of an escort last year.
He resigned from his $92,700 a year job on Sept. 15.
No charges have been filed.
Commonwealth’s Attorney Robert D. Anderson said the case is under investigation.
Town leaders, some of whom were on Town Council when the credit scandal unraveled in 1999, made very similar statements as they did back then, pledging to make changes so that misuse of town credit cards does not happen again.
But Leesburg Mayor Kristen Umstattd, who was vice mayor in 1999, said she is not sure the town can prevent someone from tricking the system.
“We’re going to have to take steps to make sure it doesn’t happen again,” Umstattd said.
“... You do what you can but I am not sure any system you put in place is going to be fail-safe.”
Leesburg Today filed the Freedom of Information Request on Sept. 10 specifically for all of Agujia’s credit card records from Jan. 1, 2002, to the present date.
On Sept. 11, the town’s Chief Purchasing Officer Kathy S. Elgin replied by e-mail that she had collected the credit card information and offered several times and dates for the reporter to view the documents.
Elgin is normally the only town employee in the Finance Department who conducts the checks and balances of all of the approximately 80 town issued credit cards.
Finance Department Director Paul York sometimes checks the receipts.
Umstattd said York had previously spotted the escort service charge but thought it was mistakenly labeled and did not investigate it further.
York said Wednesday that he never spotted a charge that was specifically for an escort service.
“There was a firm in California, I think it was Voice Data Enterprises or something like that, but the receipts indicated it was for computer hardware,” York said.
“The description and the name of the company just didn’t match as being an escort service."
"It appeared there was an error in the way the vendor had been coded by the card company."
"There was no link there to indicate anything was suspicious.”
On Sept. 15, Elgin withdrew the offer to view the documents.
“I cannot provide the documents as requested in your September 10, 2003, FOIA request for the purchase card records of Michel Agujia."
"The commonwealth's attorney has directed that since there is a criminal investigation underway that the town should not release or reveal any documents requested,” she stated in an e-mail.
Agujia purchased the escort on Nov. 1, 2002, for $388.10.
The company which provided him the escort service, Romeo3Entertainment, is under investigation by federal authorities even though the Loudoun County Commonwealth’s Attorney’s Office last week dismissed the charges of accepting money from prostitutes and keeping a bawdy place against the operator of the business.
The owner of that company, Preston Jenkins, and his attorney have said that the business is legitimate and operates legally.
Jenkins said he will not operate in Loudoun County until the Sheriff’s Office sends someone to explain to his staff what is legal and illegal.
According to Noe, Agujia used the town-issued card twice to purchase an escort service but the town was only charged once.
Noe said the amount was paid back.
“To the best of my knowledge no one in the town knows about any other bonafide charges for an escort service,” Noe said.
“The town believes there were two charges for escort services, one of which was charged and immediately credited.”
Town Attorney William Donnelly said Tuesday that no one red-flagged the charge because Agujia covered his tracks by using an online charge system called PayPal and falsifying the purpose of the charge.
“To remedy that, [Monday] we instructed the bank, which is Wachovia, to no longer honor any PayPal purchases on the town’s [credit] cards,” Donnelly said.
“When you use the card to facilitate a purchase using PayPal, that bypasses or circumvents the limitations we have put on the card because the bank that processes the transactions, their computer sees a purchase from PayPal, which is not one of the prohibited purchases.” The investigation arises just four years after allegations of misuse of town-issued credit cards led to the resignation of Town Manager Steve Brown and Councilman Joe Trocino.
It also resulted in the firing of Police Chief Keith Stiles, who drew the ire of some council members when he reported evidence of credit card misuse to Anderson.
Stiles filed a federal lawsuit over his termination.
He won the lawsuit and the case was eventually settled for a $2.325 million cash payment by the town. Brown and Trocino were alleged to have used the credit cards for personal purchases, some of which had been repaid.
No charges were brought as Anderson negotiated agreements that resulted in the two resigning their public offices.
Donnelly said that certain steps were instituted after the 1999 scandal.
One of those steps was that two people check the credit charges—the department head and a staff member of the town’s Finance Department.
The department head is required to submit to the Finance Department justification for the charge or a statement showing all of the purchases made for the month, the amounts, and attachments of receipts and backup documentation for the Finance Department to double check, Donnelly said.
Because Agujia was the supervisor of his five-member department, he was able to cover his tracks by stating the purpose of the charge was for software and failing to provide additional receipts of proof by stating that they were illegible, Donnelly said.
“In hindsight, maybe a red flag should have gone up at that time,” Donnelly said, “but you know, there’s a certain amount of trust involved, particularly when it’s the department head.”
Dozens of charges were made by Agujia’s department using PayPal, Donnelly said, but “as far as we know, to this day all of them were legitimate except this one.” The Loudoun County government has also taken steps to prevent a similar situation.
“We do not have [PayPal] as a specific area of denial, however, the general statement that all purchases must meet the criteria of being for the benefit of the county should indicate to the cardholder that it would be improper."
"I have instructed staff to be aware of both PayPal and Billpay and to flag the transactions for immediate review,” said Loudoun County Deputy Director of Financial Services Paul N. Arnett. Anderson said his office, the FBI and the Loudoun County Sheriff’s Office are jointly investigating the incident and he would not comment on whether the investigation specifically targeted Agujia or if other employees may have used town credit cards for personal items.
He advised Noe to take custody of all credit card records Monday and said that the records will not be released because they are now evidence in an ongoing investigation.
In the 1999 investigation, Anderson encouraged the town to release the credit card records publicly, saying such disclosure would not hamper the criminal investigation and might actually facilitate it, according to a Leesburg Today report.
Anderson said Tuesday that he does not recall saying that in 1999.
“It doesn’t sound consistent with anything I would have done,” Anderson said about the 1999 statement.
“In this case, we don’t know what we have."
"If we were to release that information it could jeopardize the rules of discovery.”
In a typed statement, Noe said he met with Anderson and Deputy Commonwealth’s Attorney Owen Basham on Monday to reveal the possible misuse of the credit card, which Agujia is reported to have admitted to on Sept. 12, two days after the FOIA request was made.
Noe stated that he reported the incident to Umstattd and other council members over the weekend.
The incident was also reported Saturday to Leesburg Police Chief Joseph Price.
“He [Agujia] didn’t tell me what precipitated him coming to me last Friday and I don’t know the answer,” Noe said.
Agujia was hired on April 19, 1999, at a salary of $63,000.
The following year he received a raise of $6,506 and then his salary jumped to $81,020 in May 2001.
At the time of his resignation, he was being paid $92,685.
Town Councilman Robert J. Zoldos, who served on the council in 1999, said he was upset that the mayor did not call a special meeting to discuss the issue immediately.
Zoldos said he has not forgotten the 1999 scandal and vowed that the council would not sit idle on the issue.
He called the most recent incident “embarrassing.”
“I found out Sunday when Noe briefed me,” Zoldos said.
“If I was mayor, we would have had an open session and discussed it right then.”
Noe said he is taking steps to figure out how to improve the town’s credit card charge review process.
He said Tuesday that he intends to review the final report by Robinson, Farmer and Cox, which handled the review of the town’s 1999 scandal, to make sure the recommendations that the company made were implemented.
Secondly, Noe said he plans to personally review every town credit card account to check for what purposes each cardholder is allowed to use the card.
Finally, Noe said he will take the information he gathered and will decide then what needs to be done internally to prevent a third incident.
“I have some suspicion that we may not have the proper internal control,” Noe said.
He said he has full trust in Elgin’s checks and balances but wondered if it is asking too much of one person to have responsibility over every charge.
As part of his research, Noe said he will talk with members of the accounting industry to see what is done to prevent credit card misuse.
“There’s somebody in the industry that’s an expert on this and I am going to find out what they have to say,” Noe said.
“Our own auditor may be able to tell us.”
York said the credit cards use codes that are assigned by the bank to different businesses and that the town can block certain codes from being charged.
He suggested the town block more business codes.
“If you looked at the information that he submitted to us, unless you knew specifically what you were looking for it would have been difficult for someone to raise a question with those specific charges,” York said.
“We need to assign more blocks obviously to other types of businesses.”
The town is currently being audited and Noe said if the credit card charge was to be spotted, it would have been done during this review.
Umstattd said that a very strict review of the town credit card policy will be undertaken in the wake of the current investigation.
She has asked the town’s auditor to review all credit charges—something she said that is not typically done.
One change she said that was made in 1999 was switching to a “purchase card” system instead of using normal credit cards, so that the town could prohibit certain charges for items like alcohol or meals.
“I thought we had taken the steps we could [in 1999] but it’s like hackers in the computer world,” Umstattd said.
“You put up computer software on your computer and hackers come up with another virus."
"Every system is going to be vulnerable to intelligent people who know how to get around it."
"... There’s not always a whole lot you can do if an employee decides they are going to take what isn’t theirs."
"You potentially are always going to face that kind of trouble.”
Councilman James F. “Frank” Buttery Jr., who also served on council in 1999, said he was disappointed when he heard about the incident over the weekend.
“At this time, can you prevent people from doing an illegal act?"
"I wish I had the answer to that,” he said.
Buttery said the town took the 1999 scandal seriously and “there’s no place in government or business for anyone misusing the trust that has been placed in them.” Zoldos questioned why there are so many town-issued credit cards.
“We don’t need 80 credit cards,” he said.
“Good grief."
"That’s silly.”
Necessary actions, whatever they are, will be taken, Zoldos said.
“Bottom line is if you commit fraudulent use of government credit cards then you’ve got to pay the consequences,” Zoldos said.
“I thought we had this resolved after the ‘99 occurrence."
"We don’t.”
1 East Market St. Leesburg VA 20176 Telephone 703-771-8800 Fax 703-771-8833
P.O. Box 591 Leesburg, VA 20178