Beyond Incompetence ... No Excuse For Incredible Negligence

SEE HERE  What the hell were these people doing?  If this is true it is way beyond incompetence.  It is probably way beyond negligence.  It's hard to imagine that it isn't some kind of money kickback scam.  How do you send thousands of refund check amounting to millions of dollars to the same address without that flagging a big big problem?  Does anyone anywhere ever check the work of these buffoons?