State auditor critical of GOER in grant money case - FOX 10 News |

State auditor critical of GOER in grant money case

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PHOENIX (AP) - Auditors say the Arizona Governor's Office of Economic Recovery didn't do a sufficient background review of a businessman accused of defrauding the state of $250,000.

The state Auditor General's Office released its report Friday on an investigation of theft and fraud schemes involving grant monies.

A state grand jury has indicted AT Security Service's top executive on 12 felony counts of theft, fraudulent schemes, forgery, false filing, identity theft and illegal control of an enterprise.

Auditors say the executive got the money in September 2011 to relocate the company to Arizona. But they say AT's California headquarters and its more than 300 employees didn't exist and the executive used the $250,000 for his personal use.

Auditors say the GOER "failed to exercise an appropriate level of oversight and due diligence."

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