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When Business Consulting Goes Horribly Wrong

A consultant collected $3.4 million for advice that exposes the Wisconsin to tens of millions of dollars in potential federal claims.

Between 2004 and 2009, a private consultant collected $3.4 million from Wisconsin taxpayers for giving questionable advice that has now exposed those same taxpayers to tens of millions of dollars in potential federal claims.

 

The Reston, Va.-based firm, Maximus Inc., received the payments through a contract that gave the international consulting company a hefty financial incentive to push the limits of how much money the state could claim from the federal government for a psychiatric program for youth.

Maximus has a history going back more than a decade of being cited in audits for its work in Wisconsin — and a history of making political donations to governors of both political parties.

Over the past nine years, the state has acted on Maximus' advice and as a result received $67 million more federal money for the state psychiatric program. But last month a federal audit found that billing was improper and raised questions about whether the state might have to pay some or eventually all of that money back.

 

Daniel Luzer is GOVERNING's news editor.
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