Obama Labor Dept. Official Quits Over Accusations of Steering Work to Friends
- Posted on July 29, 2011 at 10:40am by
Madeleine Morgenstern
- Print »
- Email »
WASHINGTON (The Blaze/AP) — A high-ranking Department of Labor official appointed by President Barack Obama has resigned after an internal investigation found that he improperly steered federal contracts to friends and former colleagues.
Raymond Jefferson resigned from his post as assistant secretary of the Labor Department’s Veterans’ Employment and Training Service Tuesday amid an ethics probe.
Raymond Jefferson, who headed the department’s Veterans Employment and Training Service since 2009, used his position to coerce or intimidate other employees to make the awards without open competition, according to a July 21 report by the agency’s acting inspector general, Daniel Petrole.
Jefferson resigned his post on Tuesday, Labor Department spokesman Carl Fillichio said.
A former Army officer who lost all five fingers on his left hand when a hand grenade detonated prematurely during Special Forces training, Jefferson was tapped by Obama to head the office that helps veterans find jobs and employment training programs.
The report said that Jefferson and other lower ranking officials engaged in conduct “which reflects a consistent disregard of federal procurement rules and regulations, federal ethics principles and the proper stewardship of appropriated dollars.”
According to the Washington Post, Peter Choharis, Jefferson’s lawyer, said the report “relies on hearsay, has many internal inconsistencies and contradictions and omits substantial exculpatory evidence. We look forward to rebutting the report in its entirety when we have full access to the record.”
The investigation was prompted after a whistleblower reported irregularities last year to Sen. Claire McCaskill, D-Mo.
In one case, the report found that Jefferson and a deputy pressured colleagues to hire Stewart Liff, an employee management author and speaker who specializes in boosting employee performance. When that didn’t work, Jefferson told subordinates to instruct other contractors to hire Liff as a subcontractor at the highest possible rates.
Liff ultimately received about $700,000 over 16 months, twice as much as other firms were paid for similar work, the report said.
Liff billed $275 an hour to prepare one consulting report “that talked about how you should light the work place and what color you should paint the walls and what the furniture should be,” McCaskill said.
“The irony in this particular management consultant report was the color he told them to paint the walls was not allowed under government regulations,” McCaskill said. “This is the kind of boondoggle that taxpayers have every right to expect would come to a screeching halt.”
Liff did not immediately return a call seeking comment.
The report also found that Jefferson coerced employees into hiring Ron Kaufman, a consultant who conducted training seminars as part of his company, “Up! Your Service.” Kaufman and his wife traveled from Singapore to three U.S. cities to provide “customer service” training to veterans office employees. Kaufman has sought more than $100,000 for his services, but has not been paid.
Jefferson also violated procurement rules to hire Mark Tribus, a former West Point classmate, to provide a leadership training session, the report said. Jefferson tried to get a sole-source contract awarded to Tribus, but it was rejected.
Agency employees raised concerns about each of the contractors directly with Jefferson, the report found. In an interview with the inspector general’s office, Jefferson said he instructed his staff to procure all these services “legally and ethically.“ But the report found that statements by other office employees ”cast serious doubt upon the sincerity of Assistant Secretary Jefferson’s assertion.”
Fillichio said the department has already taken steps to increase oversight and restrict the procurement authority of the veterans office. The department’s lawyers and human resources staff are also reviewing several lower level officials whose conduct was called into question in the report.
“Poor stewardship of appropriated dollars is unacceptable at the U.S. Department of Labor and will not be tolerated,” Fillichio said.
Jeff Lagda, a spokesman for the Labor Department’s acting inspector general, said the office has decided not to refer the case to the Justice Department for further investigation.
“It was a situation where someone decided not to follow procurement or ethics rules,” Lagda said.
Jefferson earned an MBA from Harvard Business School, served as a White House Fellow and later was deputy director for Hawaii’s Department of Business, Economic Development and Tourism. He worked as a consultant for McKinsey & Company in Singapore before Obama appointed him to the veterans office.
McCaskill, who heads a Senate subcommittee that oversees government contracting, said she doesn’t fault the Obama administration for appointing Jefferson, given his impressive resume. But she plans to take a hard look at what she sees as wasteful management consultant contracts that appear to offer little benefit to government agencies.
“We can’t afford that right now,” McCaskill said. “It’s just wildly inappropriate.”
Popular Stories
Paper Details Obama Admin’s Alleged Secret Note Sent to Iran: If Israel Attacks, We Won’t Get Involved 564 Comments
‘Made Up Religion’: TV Historian Enrages Muslims, Receives Threats After Producing UK Documentary Questioning Islam’s Beginnings 390 Comments
This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 382 Comments
Roseanne Barr: Most Billionaires ‘Violent Pedophiles’ & ‘Heartless’ Cocaine Addicts 365 Comments
President Obama Issues Major ‘Green Energy’ Executive Order 321 Comments
Faith
- This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 382 Comments
Pakistani Muslim Cleric Accused of Framing Disabled Christian Girl in Koran-Burning Case Read More- ‘Made Up Religion’: TV Historian Enrages Muslims, Receives Threats After Producing UK Documentary Questioning Islam’s Beginnings 390 Comments
Meet the Controversial German Imam Accused of Brutally Beating His Wife & Pushing Sharia Law Read More
‘Self-Proclaimed Messiah’ & Unification Church Leader the Rev. Sun Myung Moon Has Died — Here’s His Life Story Read More
Business
- President Obama Issues Major ‘Green Energy’ Executive Order 321 Comments
- Germany’s Upcoming Court Ruling Will be Huge for the EU Read More
Ford Looks to Beat Toyota for Best-Selling Car in 2012 With This Model 150 Comments
Bernanke & QE3: Here’s What You Need to Know Read More- ‘Extortion’: Why Did the Labor Department ‘Drop the Hammer’ on Oregon Farmers? 302 Comments
Technology
- This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 382 Comments
‘TaserDrone’: Hackers Weaponize Quadcopter With Actual ‘Shocking’ Technology Read More
Ever Heard of the Wild ‘Burning Man’ Festival in the Middle of the Nev. Desert? Here’s Your Primer Read More
Stanford Develops Technology ‘Better Than Steroids’ for Athlete Recovery Read More
Have You Pretended to Know What ‘the Cloud’ Is? You’re Not Alone Read More
Submitting your tip... please wait!
Comments (142)
Tax Preparation
Posted on July 29, 2011 at 11:12amSounds like something the Obama administration would do. I really hope America wakes up and votes him out.
Report Post »JRook
Posted on July 29, 2011 at 12:41pmLike Cheney with Haliburton both administrations seem to have individuals who have trouble with conflicts of interest. How about more attention to Sen. Claire McCaskill, D-Mo. actions which resulted in removing the individual.
Report Post »Marci
Posted on July 29, 2011 at 2:48pmI’m shocked that McCaskill is doing anything at all about it. Good for her…but I’d like to see her take the same approach to debt and other legislation which she clearly does not. As for Jefferson–shocker, Obama has taught these people how to behave. Obama himself was appointed, not elected, so he doesn’t know which way the wind blows until he is told!
Report Post »shazam3
Posted on July 29, 2011 at 3:34pmAfter a YEAR????
Report Post »Czar Casm
Posted on July 29, 2011 at 3:41pmD.C. business as usual. And they want us to believe they have a revenue problem not a spending problem.
Report Post »JRook
Posted on July 29, 2011 at 3:49pm@Marci Nah I think Cheney set the example and the bar to cross in terms of conflict of interest and misuse of government funds.
Report Post »Oahujack
Posted on July 29, 2011 at 4:56pmJROOK, If you are referring to Haliburton/Kellogg, Brown, Root contracts for services in Iraq and Afghanistan, there were no other contractors who would take the job because of the dangers involved. Have you ever heard of a contractor complaining about it? No! Only lefty trolls like you!
Report Post »Czar Casm
Posted on July 29, 2011 at 6:55pmHaliburton had the Logistics Civil Augmentation Program (LOGCAP) in 1992 and lost it in 1997 through the bid process to another company. However, the Clinton administration awarded a no-bid contract to Halliburton to continue its work. Al Gore’s reinventing-government panel even singled out Halliburton for praise for its military logistics work. Their reasoning was that there was no reason to change companies mid stream and the cost to do so would have been enormous. The fact is Haliburton is very good at world wide logistics. When your dealing with suppling our soldiers during life or death times, it’s best to stay with a proven supplier.
Report Post »valricoslash
Posted on July 30, 2011 at 11:27amI have one word—JAIL.
Report Post »Texas woman56
Posted on July 29, 2011 at 11:09amHe is up to something here. Guns going across the border and nothing done, people being killed by the actions of Americans. He is worried about someone giving people jobs. This is a smokescreen for something else.
Report Post »nobama4ever
Posted on July 29, 2011 at 1:31pmThis is clearly a diversion tactics.
Report Post »bikerr
Posted on July 29, 2011 at 11:08am“We can’t afford that right now,” McCaskill said. “It’s just wildly inappropriate.——————Ah? and just when IS it appropriate?. just shows more of the mind set of how to spend our hard earned tax payer dollars!
Report Post »13th Imam
Posted on July 29, 2011 at 11:27amImagine how hard it was for Claire , DEMOCRAT to actually turn in one of her Obama Buddies. He will be hired by Spooky Dude or another DEMOCRAT as he is obviously a loyal DEMOCRAT Thief. Van Jones could use his expertise.
Report Post »bbg1123
Posted on July 29, 2011 at 1:03pmPoor Claire, I am nearly first name basis with her, and a regular thorn in her side, since I maintain a home in Mo. I have sent her 15 emails in the lst 6 months. She is trying so hard to look fiscally conservative and distance herself from the uber left she stood so closely by until the last election. I think she fears for her job. Most of her responses seem boiler plate podium stuff … so I think she should worry.
Report Post »13th Imam
Posted on July 29, 2011 at 2:22pmBBG
Report Post »Keep up the good work
AR485
Posted on July 29, 2011 at 11:08amI think someone needs to clear the clog in the swamp drain. It’s really getting backed up!
Report Post »DeliverUsFromEvil
Posted on July 29, 2011 at 12:45pm@ar485
Me thinks the swamp was drained a few years ago, now it’s time to work on the sewers.
Report Post »Pigfarmer
Posted on July 29, 2011 at 11:08amIt s Sarah Palins fault… You can t blame the poor black man…
Report Post »I Love Howie Carr
Posted on July 29, 2011 at 11:43amWhy is everyone obama appoints black? It just seems statistically impossible for so many people in one admin. to be black unless there’s some racially motivated preferential treatment.
Report Post »Mateytwo Barreett
Posted on July 29, 2011 at 12:21pm@ I Love Howie Carr
Report Post »Depends on what puddle you fish in!!
DasMouse
Posted on July 29, 2011 at 11:08amClearly he was setup by the conservatives, the tea party,Sarah Palin and Abraham Lincoln. The All Knowing All Seeing Dear and Glorious Leader Obama would NEVER associate himself with such treachery and bring disgrace and shame to the American people.
Report Post »Unbelievable
Posted on July 29, 2011 at 11:07amHarvard Business School… Hum, now who would have thunk!
Report Post »Jenny Lind
Posted on July 29, 2011 at 11:07amThe best thing for the American people-no good ‘ol boy network. Get someone with guts to just say no and shut it down wherever it crops up. My kingdom for an honest man-read that somewhere.
Report Post »OverFiend
Posted on July 29, 2011 at 11:07amSteer a job my way please.
Report Post »Anonymous T. Irrelevant
Posted on July 29, 2011 at 12:01pm“the office has decided not to refer the case to the Justice Department for further investigation.
“It was a situation where someone decided not to follow procurement or ethics rules,” Lagda said”
Can we get ANY justice from this crooked administration? If there are no consequences, why have any rules?
Report Post »I’m sure McCaskill will be looking real hard, just like OJ looked for the real killer.
TRONINTHEMORNING
Posted on July 29, 2011 at 11:06amIt’s getting fun out there!
Report Post »WhatTheHuh
Posted on July 29, 2011 at 11:06amThis is why the government shouldn’t run anything. Because the government can’t go bankrupt, it isn’t restrained by market forces (which are unbiased). People who work for the government don’t make decisions based on financial considerations, they make decisions based on getting votes and retaining power. Add to that the lack of accountability and you get stories like this, a government official who ignore the rules and gives jobs to friends (and whose only punishment is that he’s allowed to quit – he’s not even fired!)) This is the future of healthcare. Already you see friends of the administration getting waivers and you can be sure that politicians will remain outside the system.
Report Post »USACommoner
Posted on July 29, 2011 at 11:00amI must say I am SHOCKED at this latest development. You mean to tell me that obama appoints his friends to important posts when they are unqualified or clearly unethical…??? I am shocked. Seems the bruthah got hooked up. THAT’S the way I want my government to operate…
Report Post »Ann0525
Posted on July 29, 2011 at 11:07amThis seems to be the Chicago way to govern and rape the economy. Guess not fully vetting new hires is also the Chicago way to go. So sad that there is no ethical morals abounding in this administration.
Report Post »psst
Posted on July 29, 2011 at 10:59amWhatever he got back “Under The Table” of course.
Report Post »He kept 10% and passed on the other 90% to the Kenyan Moslem marxist,a citizen of Indonesia who was adopted by his step-father. An Indonesian.
Transparency my friends. We can see right through this. Thanks prez Soetoro.
hauschild
Posted on July 29, 2011 at 10:59amFreakin’ commies!!!
Report Post »cas13
Posted on July 29, 2011 at 10:58amNo surprise here!
Report Post »GaryInTheMiddle
Posted on July 29, 2011 at 10:57amCorrupt Obama administration getting corrupter, more corrupter, more corrupt…. you know what I mean.
Report Post »Snowleopard {gallery of cat folks}
Posted on July 29, 2011 at 11:02amIndeed, is not the cronism and old buddies graft and theft network just so wonderful this cycle of the administration? Sarcasm is quite intentional and directed at the corrupt Obama admin.
Report Post »Le Sellers
Posted on July 29, 2011 at 11:02amWas it, perhaps, “mosterest corruptedest”?
Report Post »Maidoff101
Posted on July 29, 2011 at 10:54amChicago Politics 101, How that “Hope and Change” workin for ya!
Report Post »BuckOfama
Posted on July 29, 2011 at 11:01amHe should now loose the fingers on his other hand……
Report Post »SFYMP
Posted on July 29, 2011 at 12:14pmHe probably got a medal for being too stupid to throw a live hand grenade. The only way a grenade blows up in your hand is because you are still looking at it. Affirmitive action at work in the military. Either that or he wasn’t man enough to finish training and took the easiest way out like so many did in nam, ask john kerry.
Report Post »NOBALONEY
Posted on July 29, 2011 at 10:52amThis will get no coverage from MSM, because of the Washington ‘THREE RING CIRCUS”.
Report Post »conservativemom99
Posted on July 29, 2011 at 10:50amThe most surprising thing about this story is that there was an internal investigation. wow!
Report Post »jds7171
Posted on July 29, 2011 at 10:50amWhat impressive resume. He’s a government worker .. and from Harvard. I keep getting less impressed from these Harvard graduates.
Report Post »Le Sellers
Posted on July 29, 2011 at 11:01amIsn’t “government worker” an oxymoron?
Report Post »jds7171
Posted on July 29, 2011 at 5:36pmOf course it is. I work for the local city while I go to school. I know exactly how much work actually gets done. or not done.
Report Post »coachlowe
Posted on July 29, 2011 at 10:48amGood for Claire McCaskill! At least she did something good on her way out!
Report Post »I.Gaspar
Posted on July 29, 2011 at 10:48amI am shocked!
Report Post »Corruption in obama’s white house!
I just can’t believe it.
He is another example (like McCain) of a veteran being given too much credence because of his sacrifice while in service.
Thank you for your service, soldier.
Now stay the hell out of politics.
Hugo Stiglitz
Posted on July 29, 2011 at 10:46amBirds of a feather flock together.
Another crook on B. Hussein Obama’s staff exposed.
Report Post »MBA
Posted on July 29, 2011 at 10:45amImagine that–criminals in the obamy administration.
Report Post »EqualJustice
Posted on July 29, 2011 at 10:40amANOTHER one bites the dust. What a corrupt bunch of commies.
Report Post »