TagSea-Tac Airport(285)

On January 22, 2008, the Seattle Port Commission created the Special Investigative Committee to undertake an investigation of findings in the State Auditor’s 2007 Performance Audit that identified areas where the Port of Seattle may be vulnerable to fraud or where fraud may have occurred. Commissioner Bill Bryant chaired the Committee. Commissioner Gael Tarleton served on the Committee. Former U.S. Attorney Mike McKay was hired to serve as legal counsel for the Committee, organize an investigative team, and conduct the investigation. The investigative team conducted over 75 interviews, reviewed over 250,000 pages of documents, searched over 300 gigabytes of electronic data and e-mail, established its own hotline, and followed anonymous tips received from it. For the purposes of this investigation, fraud is defined as the intentional misrepresentation or concealment of material information, known to be false, with intent to deceive or mislead, with resulting damage. The concept of fraud is distinct from that of embezzlement, which requires that an individual personally profit from his or her misconduct. While the investigative team did not identify any embezzlement or personal gain, it found ten incidents of fraud in port contracting practices. It also identified findings in the State Auditor’s Performance Audit which were not substantiated by facts. In November, the investigative team briefed the U.S. Department of Justice on its findings. The report is divided into four sections: (1) Findings of fraud, (2) Findings in which laws or policies were violated, but no fraud was established, (3) Findings in which neither violations…

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