The arrestees, using their knowledge of the controls surrounding construction contract procurement and payment and the weaknesses and enforcement of these controls, were able to falsify source documentation, effectively override invoice and payment controls, and facilitate overpayments to the contractor for their own personal monetary gain.

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In one deal, O'Shea allegedly got 1% of the contract revenue as a kickback payment.

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With this sort of contract, the owner of a big, highly appreciated stock position gets an upfront payment from an investment firm--typically for 75% to 85% of the value of his shares--in exchange for agreeing to deliver a variable number of shares or cash in the future, with the exact amount dependent on how the stock performs.

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Instead, like buying a house with a small down payment, you pay a fraction of the contract's value yourself and borrow the rest.

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Swaps are privately negotiated trades between two parties to exchange cash flows on specified payment dates during the agreed-upon life of the contract.

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What those who hire consultants generally say: defining specific goals ahead of time and tying payment to them often works out to a contract that pays off.

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Your statement of work or contract for any business engagement should define the deliverable for each party, the payment terms, and what the contingency plan is if something were to go wrong.

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Also included is a new Department of Defense (DOD) General Provision that would authorize the Secretary of the Navy to receive and retain payment in-kind for the settlement of the longstanding A-12 aircraft contract litigation.

WHITEHOUSE: Letter -- Fiscal Year 2014 Budget Amendments