Later that summer, the officials decided to replace the payments to the wives by having one of the veterinarians submit phony invoices for payments.
Phony invoices, prosecutors said, were also used to improperly funnel 8.1 million Canadian dollars out of the company and into the accounts of Mr. Gottlieb and Mr. Drabinsky.
It was a system in which phony invoices and receipts thrived next to phantom committees and working groups that never met.
The two did this, the lawsuit contends, by submitting phony invoices for maintenance services or materials provided by nonexistent companies, or by overbilling for maintenance actually done by a company owned by Mr. Hamberg.
According to the charges, the rabbis' fraud took three basic forms: The program paid "phony invoices" from three companies, which the court papers did not identify, for goods and services that were not provided, the prosecution said.
Here's what happens: Thailand rebates value-added tax to exporters, who soak the government with phony invoices for nonexistent exports.
(Associated Press) 3. The city of Dixon is blaming phony invoices and lax auditors for not catching Rita Crundwell's embezzlement of funds.
Prosecutors said that the company, the RW Professional Leasing Corporation, concocted elaborate schemes using up to 100 rented mailboxes as far away as California to send phony checks, sham invoices, bogus leases and other false documents to banks in various states.
In a conspiracy with employees at the two companies, Kerry Khan and Alexander, who oversaw the contract, added millions of dollars in phony expenses to invoices sent to the government.
A former Nassau County employee has pleaded guilty to federal charges of embezzling more than $40,000 from the county by submitting invoices for phony food deliveries.
