City Employee Using a Sham Sale to Bid on Municipal Contracts
My question involves criminal law for the state of: Texas
Would this activity be considered illegal: A city employee has a business they operate during the off duty hours. The city has a very clear policy that city employees cannot engage in business with the city outside of their actually job responsibilities. The city posts a a public bid for service. The employee wants the contract but knows they cannot bid on it. So, the employee transfers the ownership of the business to an immediate relative for a $1.00. This business, per the employee, is worth $3 million. The business wins the contract and the employee profits from it. Is this in anyway considered fraud?
Re: City Employee Using a Sham Sale to Bid on Municipal Contracts
It is fraudulent, if the employee is the one profiting. The owner of the business should be profiting. You should report this to the states Attorney General.
Re: City Employee Using a Sham Sale to Bid on Municipal Contracts
If the city has personnel rules prohibiting the employee's conduct, you can report your suspicions to whomever in the city is responsible for investigating employee misconduct, along with whatever evidence you have that this was a sham transaction and not a bona fide transfer of the business.