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HomeBlogHUD 3.5: Why Craig Karnes Is Probably On The Dole R-ATL-02006

HUD 3.5: Why Craig Karnes Is Probably On The Dole R-ATL-02006

The US Department of Housing and Urban Development‘s Management and Marketing (M&M) 3.5 Contract is the thing urban legends is made of. It has all the classic hallmarks of corruption, bribery, deceit and of course the HUD M&M Director Craig Karnes.

Everyone is already aware of the fact that Craig Karnes stared down the Protests over the size of Matt Martin Real Estate Management (MMREM) and BLB Resources (BLB). All bullshit aside, my belief is that MMREM and BLB bribed Karnes. Ironic, really, based upon the conversations I had with Karnes early on where he made his thoughts CRYSTAL CLEAR on what he thought about the Awardees on the Asset Management (AM) and Field Service Management (FSM) sides.

More on point, when you go over the painful progression of the HUD M&M 3.5, you have to begin to wonder what Rod Gaston (BLBs real shot caller, not his wife) or Matt Martin have over Craig Karnes head.

Rod Gaston was asked to speak at the HUD M&M 3.5 Industry Day Meeting. Now, while I cannot find it yet (I am submitting a Freedom of Information Act (FOIA) Request this week) I have a hunch that BLB and MMREM were not the early contenders. I am pretty damn sure the the Procurement Law Division (yeah, remember those folks Craig?!) will be able to shed some good light on why the HUD M&M Director went so far out on a limb to basically lie to the Courts and strike a mighty blow for the White Man by having the La Rosa Case tossed out (See the Redacted Case and the Full Case should be posted later this week — whoa! Yeah, we have pull like that!).

You see, the dirty little secret is that Craig Karnes GAVE ALL OF THE NUMBERS AND BID DATA TO AND/OR HAD THEM PROVIDED on to Rod Gaston. This is really ironic as Gaston protested during the Proposal Grading Process that low pricing should NOT be a determining factor — sound a bit like La Rosa?! That Protest allowed him to cull more data than the National Security Agency (NSA) compiles on Europe with respect to HUD!

Gaston’s coup allowed BLB to be invited back into the Best-and-Final Group after FIRST being counted out! This gave Gaston the opportunity to lower BLBs pricing in response to all of the data Craig Karnes and HUD gave him which allowed BLB to win the bid. Matt Martin of MMREM received nearly an identical opportunity which allowed him to reduce his bids and thus win as well.

Here’s the kicker: With the huge cluster f*ck going on, Gaston continues to make a killing on his current Contracts he already possesses out West while the HUD M&M 3.5 Procurement debacle continues. Let’s remember, Craig Karnes Awarded HUD &M 3.5 at the Eleventh Hour right before the US Government shut down.

I fundamentally believe Craig Karnes is being bribed. I mean the Alpharetta, Georgia, home aside, there have been 7 new Government Accountability Office (GAO) which have been filed even after the fact that Karnes told the Courts last go around that HUD was going to make changes.

Karnes is out of his depth. His seemingly corrupt ways date all the way back to his Army Contracting days. Making questionable awards official and then telling others that they didn’t win because their bids were “…technically unacceptable…” is simply setting up a criminal indictment — that is if those cheated grow a set and report it to law enforcement.

Six companies filed new GAO protests regarding M&M 3.5 in the last week (, as HUD recently stuck their neck out further for BLB and MMREM by making the questionable awards official and by telling some best-and-final offerors that they didn’t win because their proposals were “technically unacceptable.” Thus, Gaston stands to keep his work for many months to come.

 Now, the big question is why is La Rosa Realty a finalist? Nothing on their website about REO Properties; they are a local real estate brokerage in Florida. More on point, where did they get the tens of thousands of dollars necessary to file the Protest they did?

La Rosa is a proxy; never make any mistake about that. They are being used as a front for an incumbent. Feel free to have your general counsel give me a call if you don’t like my opinion and we will go through the Discovery Process — your lawyer (if you even have one) will explain that process to you.

So, while Craig Karnes has unleashed the most massive blow for the White Man in the form of corruption in the FSM side, he now wants the AM side to be equally as corrupt. Neither he nor Brian Sullivan will speak to members of the media — matter of fact Craig Karnes has refused to answer a Congressional Inquiry of Senator Bob Corker for over a year now wherein I had the Senator’s office ask specific questions. Craig Karnes is no different than each and every Secretary of HUD whom has left in disgrace.

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