Connecticut Kickback Scheme

An online MBA candidate student related the following kickback story to me. “My predecessor used a outside service company to perform elementary networking tasks for an astronomical high hourly wage. For simple tasks such as mounting and configuring networking gear at customer sites, he would require the outside service Cincinnati-based company to fly two high-level engineers to the site to perform maintenance.

He would then send a member of his own staff, who was also more than qualified to perform the same maintenance, to ‘oversee’, but not actually do any of the maintenance. Although the outside service company was only doing what my predecessor required and therefore legitimately sent those high-level engineers to the sites, it was totally fiscally irresponsible to our company.

The former manager racked up close to $3 million in business with this company in 2008. His reward was an all-expenses-paid trip to the Super Bowl for him and his brother from the outside service company. Fortunately for me, two weeks later he was fired and I got the job. I have since brought all that work in house and stopped doing business with that particular service company.”

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