Mon Jul 22 12:44:08 EDT 2024
Home#OpEdThe Malfeasance of Craig Karnes and HUD's Whitewashing of the M&M Contract

The Malfeasance of Craig Karnes and HUD’s Whitewashing of the M&M Contract

Labor Refuses to Work for Eduardo San Roman Due to Debt

The apparent lavish nightclub lifestyle that has become the office setting for HUD’s Acting Deputy Chief Procurement officer, Craig Karnes, is poignantly demonstrated by the $60 Million in HUD Awards given to Eduardo San Roman, the modern day Rico Suave who controls 24 Asset Management. In fact, Eduardo San Roman’s Assero, a subsidiary of the HUD M&M FSM Awardee 24 Asset Management, owes nearly One Million Dollars on Fannie Mae and LoanCare work orders to Labor. As we documented over the weekend, there is absolutely no logical explanation for how San Roman went from $21,000 a year in US government contracting to $60,000,000 a year, overnight. This, in light of the fact that 24 Asset Management has never held a US government interstate contract, let alone ever held one pertaining to property preservation. And the inability of 24 Asset Management to even spell Management is clear in their recruiting emails.

Currently, HUD Secretary Marcia Fudge is attempting to minimize the fallout surrounding both Deputy Chief Procurement Officer Craig Karnes and the decades long corruption within the HUD M&M program. With the Biden Administration’s inability to document the hundreds of billions of dollars flowing everywhere globally, except to the American Public, HUD’s refusal to answer emails or provide updates for Freedom of Information Act (FOIA) requests is the quid quo pro which HUD serves up as the soup du jour. The narrative is to protect the Awardees at all costs — including the losses experienced by US taxpayers — and never allow the American Public to question no matter what the failure rate of the HUD Awardees. The problem here is that hard working, honest Americans have not received the Spin Zone Memo from Fudge and Karnes and are asking hard questions.

The latest rollout of the HUD M&M FSM has already been reeled back in. In fact, as no other firm out there is capable of handling the assets, Guardian Asset Management was tapped, once again, to salvage the disaster which Secretary Fudge and Deputy Chief Procurement Officer Karnes pushed out to 24 Asset Management. That is the official story, right now, as Guardian covers Regions 3A, 4A, 5A, 8A, 1D, 2D, 4D, 5D, 1P, 3P, 4S, and 6S through March 2024.

As has always been the case with respect to HUD, the truth is the first casualty in their cover ups and corruption. And the slippery slope upon which people like Secretary Fudge and Deputy Chief Procurement Officer Karnes slide down, holding hands, creates a fog of war that is hard to see through. It starts with something small like turning a blind eye to reports of HUD Awardees refusing to pay Labor. Then it proceeds to small favors like whitewashing Awardees and their subsidiaries refusal to pay Labor on federal contracts. And then you end up with what we have today, 24 Asset Management going from an herb garden contract for the USDA, on a landscaping contract, to $60,000,000 in HUD Awards.

Fact of the matter is Secretary Fudge and Deputy Chief Procurement Officer Karnes both know that 24 Asset Management’s nearly 40% reduction in pay, from the previous pricing paid by the current HUD M&M FSM Awardees, is unsustainable. Moreover, though, both Fudge and Karnes are BFF’s standing firm on their 6th doubling down upon J&A bridge contracts. It is par for the course with the Biden Administration whom have absolutely no clue how to be good stewards of the American Public’s money. Their concern is obviously seated with the kickbacks associated with the line items and quarterly statements, whether they be monetary or otherwise.

For Fiscal Year 2022-2023, 24 Asset Management received $60,658,866 in Awards, all from HUD — might as well just put from Karnes here. And yet previously, from 2021-2022 24 Asset Management only received $83,719 from the USDA for performing some turf and granite replacement at the National Herb Garden entrance and another $29,748 from the USDA for the Seasonal Maintenance of the Flowering Tree walk. In the entire US government contracting history of 24 Asset Management, the combined total of Awards was only $257,857 with not a single Award exceeding $83,000. Even more concerning is the simple and salient fact that 24 Asset Management has never performed a US government contract for HUD let alone pertaining to the property preservation sector.

The vitriolic relationship between HUD and its current Awardees is common knowledge on the Street. With each HOC paying below $10,000 for the entirety of each Award, it should come as no surprise that Alpine, BLM, Guardian Asset Management, and Innotion Enterprises want the J&A’s to end. And as the word goes, many of the GAO appeals are being filed simply to prolong the longest J&A in the history of the HUD M&M FSM. Secretary Fudge and Deputy Chief Procurement Officer Karnes are scraping the barrel in that the outlays of the Awards are not covering the bills. When you deep dive the numbers you will come to find that funds are being pulled out of the actual FHA Insurance policies, amongst other places, to finance the abysmal failure of HUD’s M&M FSM. If you don’t believe me, reach out to April Cooper in Utah, for Alpine; Brent Martin for BLM also in Utah; or Ryan Gesinski for Innotion Enterprises in Virginia, and they will confirm the same.

HUD’s continuing argument, seen below, is that no one can do the job other than those whom currently hold the contract. In fact, this has been the position of Secretary Fudge and Deputy Chief Procurement Officer Karnes for years, now. One day the Awards are issued — like back in early 2022 — and on another day, they conveniently disappear. In fact, truth be known, while HUD argues that the GAO appeals are not of their own creation, nothing could be further from the truth.

The incumbent contractors are currently performing in this capacity and have the necessary office space, staffing, and resources to provide these services immediately across the geographic areas without significant schedule delays and startup costs. Any new contractor would have to deal with the issues of on-boarding new employees and sub-contractors that have the resources and knowledge to begin work immediately. — Paragraph 5 of the latest J&A Log Number 24-09 issued on 29 November 2023 by HUD’s Vance Morris, Vanessa Williams, Nicole Jackson and Jimmy Fleming-Scott.

So, if no one else is capable of handling the contract; if only the original incumbent contractors are capable of performing the work, is this some kind of Tom Cruise incident at the Church of Scientology? Do we all need to Go Clear here? Or are the latest statements by HUD simply yet another fêted cover up in their long history of Do Unto Others Before They Do Unto You? It is the riddle of institutional racism wrapped up in the enigma of fraud. The sooner that the Biden Administration is gone; the sooner that Secretary Marcia Fudge is sent back to Cuyahoga County, Ohio, where Safeguard Properties kicked it into high gear and is based out of, the better. The continued sacrifice of Labor, to line the pockets of the Atlanta HUD offices, is rallying call. And as we published here, Labor has told HUD to piss off this holiday season!

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Paul Williams
Paul Williams
Off Grid Linux Junkie and Always a Friend of Labor!


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