More than two dozen agents from numerous federal agencies drove onto the Memphis Goodwill headquarters on Wednesday, sealing the back of the property containing the corporate headquarters, which administers millions of dollars in Federal contracts throughout the Memphis metropolitan area.
The fraud investigation into the government program was first detailed in an exclusive CNN story several weeks ago. AbilityOne and its management operation, SourceAmerica, are now under investigation by at least four separate Offices of Inspectors General, and also by the U.S. Department of Justice, according to inside sources.
AbilityOne and SourceAmerica, and many of the contracts they administer, are being investigated over allegations of financial fraud, operating illegal contracts, not employing the legally required number of disabled workers, bid-rigging, contract "steering," and possible racketeering, according to sources. The program is one of the nation's largest taxpayer contracts programs, awarding some $2.3 billion annually to contractors across the country.