All of the following are classifications of billing schemes EXCEPT:

• A. Bid rigging
• B. Shell company schemes
• C. Personal purchases with company funds
• D. Invoicing via nonaccomplice vendors

Answer: (A)

Billing schemes center on deceiving the organization through fraudulent invoices and payments. Classic examples include creating shell or ghost vendors who submit fake invoices, using vendors who aren’t involved in the fraud to route payments, and charging for personal purchases as if they were legitimate company expenses.

Invoicing via nonaccomplice vendors fits this pattern because it uses a vendor to disguise the fraudulent payment, making the invoices appear legitimate. Shell company schemes are another hallmark, with fake entities billing the company for non-existent goods or services. Personal purchases with company funds also rely on submitting or processing invoices for items that were never for the business, then concealing them as legitimate expenses.

Bid rigging, however, is different. It’s a procurement fraud where competitors collude to fix or influence the bidding process to secure contracts, rather than creating or manipulating invoices to steal funds. It corrupts the purchasing process itself rather than the invoicing and payments flow.

So the item that does not belong to the category of billing schemes is the one describing collusion in the bidding process.