Which of the following is NOT a principal type of billing scheme?

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

Answer: (B)

Billing schemes involve manipulating invoices and payments to divert or conceal funds, typically through fake or misrepresented charges. The examples given—creating a shell company to issue invoices, routing payments through vendors who aren’t in on the scheme, and using company funds for personal purchases while disguising them as legitimate expenses—are all ways to generate or mask improper charges to the company.

Bid rigging, on the other hand, is procurement fraud. It centers on collusion to fix or manipulate the outcome of a competitive bidding process—deciding in advance which bidder will win, or suppressing competition—rather than creating or disguising fraudulent invoices. While bid rigging can lead to improper contracts and subsequent waste or incorrect billing, it is not itself a billing scheme. Therefore, it is not a principal type of billing scheme.