The attorney general in New Jersey announced last week that a former sales director at Outsourcing Solutions, Inc. had been charged with various crimes stemming from her role in overbilling the state for collection services and subsequently covering up the actions and undermining a government investigation.
New Jersey Attorney General Anne Milgram and Criminal Justice Director Deborah L. Gramiccion said in a press release that Sandra Bielanski was being charged with theft by deception, misconduct by a corporate official, and five counts of making false contract payment claims. The office noted that all charges represented second-degree crimes.
The indictments are the latest in a series of actions resulting from a lengthy investigation of OSI billing practices between January 1999 and May 2005. The state claims that OSI overbilled for collection services by more than $1 million in the period. In addition, OSI employees provided gifts to New Jersey officials to ensure the contract would continue.
In February 2007, OSI agreed to pay the state nearly $2 million to resolve issues of overbilling and provision of illegal gifts to state employees (“OSI to Pay Nearly $2 million to Settle New Jersey Collection Contract Dispute,” Feb. 7, 2007). But legal action against individual OSI employees and state officials has been ongoing.
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