Nebraska auditor reports surge in fraud complaints amid state waste crackdown

Nebraska State Auditor Mike Foley says his office is receiving a sharp rise in fraud complaints as attention to government waste grows nationwide.

“It’s just extraordinary the explosion of phone calls and allegations and emails and so forth that are pouring into my office,” Foley told Fox News Digital. He spoke from the State Financial Officers Foundation conference in Clearwater, Florida.

Foley said the increase follows national coverage of fraud efforts and the Trump administration’s new task force led by Vice President JD Vance.

His office has used GPS data from 45 state fleet vehicles to document employees making personal trips to liquor stores, restaurants, medical offices and relatives’ homes during work hours. The findings were first reported by the Nebraska Examiner last year.

Foley also released a report last year that detailed eight investigations into suspected misuse of public money, questionable reimbursements and possible fraud across local governments.

He said contractors have overbilled or double-billed the state, employees have claimed hours they did not work, and some school districts have spent public funds on extravagances.

Foley has clashed with Republican Gov. Jim Pillen over a no-bid contract worth about $2 million awarded to a consultant with ties to the governor. Nebraska law generally requires competitive bidding for contracts over $50,000.

Foley said there was no emergency that justified bypassing the bidding process and that grant applications credited to the consultant had already been filed by others before she started work.

Pillen’s administration said the contract was handled properly and has brought hundreds of millions of dollars in value to Nebraska. Spokesperson Laura Strimple said Foley is entitled to his opinion.

Foley has referred the contract matter to law enforcement. He said his office’s role is limited to audits and identifying potential violations.

“Nebraska regrettably is a high-tax state and people know that,” Foley said. “They are relying on me and my office to catch this kind of thing.”

He said some employees have lost their jobs and others have faced criminal charges for misusing government credit cards or stealing public funds.