Anti-Fraud Official Faces Fraud Probe

May 01, 2007 9:42 PM

Justin Rood and Anna Schecter Report:

Doc_frazier_070501_mn A senior government official is under investigation by a congressional committee for allegations he engaged in "widespread fraud, waste, and abuse" -– the same misbehavior he is supposed to ferret out.

Johnnie Frazier, the inspector general of the U.S. Department of Commerce, is said to have rigged contract bids for cronies, fraudulently charged the government for improper travel, wasted tens of thousands of dollars on an erstwhile office remodeling and may have destroyed files that were proof of his wrongdoing, according to accounts given to lawmakers by current and former employees.

As his department's senior investigator, Frazier is supposed to "detect and prevent waste, fraud, abuse, and mismanagement" at Commerce, according to his office's Web site.

In an April 27 letter to Frazier announcing an investigation into his office, House Energy and Commerce Chairman John. D. Dingell,  D-Mich.; ranking member Joe Barton, R-Texas; subcommittee Chairman Bart Stupak, D-Mich.; and ranking subcommittee member Ed Whitfield, R-Ky., detailed a wide range of allegations they had received from whistle-blowers in his department.

The lawmakers requested Frazier provide them with documentation related to the allegations.

A woman who did not identify herself answered the phone Tuesday evening at a number listed as belonging to Frazier. When ABC News explained the purpose of the call, the woman responded, "He's not going to want to talk about that." Before hanging up, she asked ABC News not to call back. In a statement to the media, Frazier's office said it was "cooperating fully" with investigators.

According to the congressmen, Frazier is alleged to have repeatedly charged the government for excessive and unnecessary travel unrelated to government duties, allegedly including trips he told people were really to find post-governmental employment.

Whistle-blowers said that Frazier gave a retirement bonus as a wedding gift to a former employee who was marrying another member of Frazier's own management team, the lawmakers wrote.

The congressmen also said Frazier allegedly ordered another senior official to prepare fraudulent application material on behalf of a "pre-selected candidate" to justify the hire. In another instance, they say Frazier allegedly told a subordinate to prepare job descriptions for senior-level positions to ensure that only certain of his friends would qualify.

Frazier also allegedly improperly arranged for a no-bid contract for $150,000 to go to a company that was connected to a retiring member of his staff.

The lawmakers relayed allegations that Frazier had the walls in his office torn down to create an "open floor plan" and ordered modular cubicle furniture for the space.  But when his special assistant "complained about having to work in a cubicle," he allegedly ordered the walls rebuilt.

The combined cost for converting back to the original work space was alleged to be a high as $100,000, according to whistle-blowers.

The lawmakers said they were particularly troubled that Frazier, a seasoned career investigator, is alleged to have destroyed, altered and tampered with evidence during the course of an official investigation into some of the complaints.

"It is alleged that one or more of your staff assisted you in deleting e-mail messages from your computer after an [Office of Special Counsel] investigation [into allegations of retaliatory behavior] had already begun," the men wrote.

Current and former employees also told the committee members that individuals were seen in Frazier's office possibly deleting documents, in particular relating to his travel, according to the letter.

In the past, some Democrats have considered Frazier, who served under President Bill Clinton, to be one of President Bush's better choices for an agency inspector general post. While criticizing the White House for appointing partisans to such investigative offices, Rep. Henry Waxman, D-Calif., cited Frazier as an exception.

"Johnnie Frazier worked for 21 years at the Department of Commerce IG office before President Clinton appointed him Inspector General there," Waxman noted approvingly in a 2005 report.

A committee spokeswoman told ABC News Tuesday evening that they had not yet received a response from Frazier.

Photo is courtesy of the Department of Commerce.  This post has been updated.

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May 1, 2007 | Permalink | User Comments (27)

User Comments

Let me guess, the guy's a Republican......

Posted by: Tom | May 1, 2007 10:43:28 PM

Doesn't matter if he's repub or dem, he's corrupt. Arrest, try, and jail them all, starting at the top.

Posted by: brian | May 2, 2007 12:54:09 AM

You're not gonna get any arugument on me out of that one. I, personally, am done with self-serving losers running my, OUR, country for their own personal desires and psychotic ideologies. Maybe its time for a few public hangings. Heck, I figure if they can destroy the 4th Amendment then the 8th Amendment is also up for grabs....

:^)

Posted by: Tom | May 2, 2007 1:25:41 AM

This guy is typical of so many government employees. He was appointed by President Clinton. Waxman who has been demanding President Bush be impeached should spend more time checking out people he praises.

Posted by: joe | May 2, 2007 6:28:11 AM

I work for a social services organization and we struggle to provide basic services for the elderly such as nutrition, transportation, housing and medical assistance. This kind of story sickens me. How well this waste to serve our communities and their residents.

Posted by: Rob Dent | May 2, 2007 7:05:36 AM

If these allegations are true, this man should be placed under a federal prison for his crimes. The worst of his sins, violating the public trust.

Additionally, those who knowingly benefitted from his crimes should also be made to pay... it's the same as receiving stolen goods. IMHO.

Posted by: Jo Davis | May 2, 2007 7:27:13 AM

I work for a social services organization and we struggle daily to provide basic services for the elderly such as nutrition, transportation, housing and medical assistance. This kind of story sickens me. How well this waste could serve our communities and our most vulnerable and frail residents.

Posted by: Rob Dent | May 2, 2007 7:37:35 AM

Let's not hang,imprision,or pre-judge until the jury is presented with the evidence of wrong-doing. The media does not always write the whole story.Should this man be gulty make him serve his time. When a former president [a Democratt] can escape prison for lying under oath anything can happen in our justice system.

Posted by: Frank Chittock | May 2, 2007 9:01:14 AM

Why does Clinton always get brought up? That is so freaking laughable. It is like Clinton is the ONLY person who ever did anything. I suppose Bush's lying is different - why? Is it because he lies under the name of god? This man should be tried and, if convicted, be punished - as should be any person who engages in this type of behavior. As far as the comment that most government employees are like this...that is bullcrock. I am a 26 year government employee and I am not like that nor are the hundreds of people I work with. True power can corrupt - very few of us have that type of authority. He is sort of the federal government's version of ENRON or WorldCom execs...just on a beer budget.

Posted by: Deb | May 2, 2007 9:12:16 AM

GOP - Greed Over Principle

There is a large element of the Republican party that are guilty of racketeering. The Bush crime family and Cheney sit a the top of the pyramid.

Posted by: onemanmatters | May 2, 2007 10:39:26 AM

If the allegatons against Johnnie Frazier are true, I think we better start looking at what has been going on at the Dept of Commerce because Frazier probably wasn't doing his job.

Rep. John Doolittle's wife, Julia, was listed as the business contact for Tech Travelers. The officers of Tech Travelers have ties to a company that got a piece of a Dept of Commerce $8 billion dollar contract for computer services.

Posted by: Mrs Panstreppon | May 2, 2007 11:05:06 AM

Thanks

Posted by: maffettb | May 2, 2007 11:22:25 AM

A man of representation that's as reckless and dishonest as Johnnie Frasier, the Inspector General of the U.S. Department of Commerce, should be hung for treason. We need to handle our internal vermon the way we would anyone from the outside world. This man is so reckless he should be stripped of his life's earnings, holdings, social security, and thrown into a tiny cell until he is hung.

Posted by: Mary Charbonneau | May 2, 2007 11:25:21 AM

What's sad about this story is this:

As opposed to the corrupted souls who have been appointed by the GOP to replace ousted career professionals in agencies throughout what's left of our government, this IS a career professional. But the Dark Side is just too strong. How many other professionals who haven't been forced out have "gone Republican" like this guy? It may take a decade to fix the extreme damage this crowd has visited upon our federal structure.

Posted by: E. J. Decker | May 2, 2007 11:27:16 AM

I agree with F. Chittock. Lets not condemn this man yet. After all, we have a serving president who is lying to us on us on a daily basis and he is still in office......

Posted by: Marty King | May 2, 2007 11:51:15 AM

Joe,

"This guy is typical of so many government employees"? The vast majority of us work at our jobs, and we do them awfully well when you consider the conditions we work under (inadequate support, a public that sees a story such as this and blames us all) and the pay we receive, which isn't anywhere near what the Top Dogs are making. Right now I make about $38k per year; if I went out into the private sector and did the same work the pay would be slightly more than twice that. So why do I, and countless others, stay? We believe in this country, and we believe that the work we do has benefit for the country and it people. When that is no longer the case we probably WILL leave, and then the only ones left will be the crooks that continually give us all a bad name.

Please don't tar all government employees with this brush. Every organization has its bad apples - remember Enron?

Posted by: WEalker Evans | May 2, 2007 1:40:12 PM

Fooled me, I thought the picture was Rep.Jefferson, and since they look so much alike, you sure this guy did not have the 90000 on ice?

Posted by: frodaddy | May 2, 2007 5:08:06 PM

I'm so disgusted.

Posted by: Ann | May 2, 2007 6:02:38 PM

Ms Pantstreppon-I am to the point that if I see your name on a comment I read it first. You are always so informative. Your research skills are huge, incisive and very to the point. How do you keep up with it all? Anyway, I read your comments at many of my favorite places and I just wanted to thank you.

Posted by: cebm | May 2, 2007 7:17:25 PM

... Well, at least this traitor should be easy enough to rid ourselves of. If he had anything whatsoever to do with Clinton, the Republicans no doubt will jump at the chance to expose his malfeasance --- as one of Bill's nefarious nominations that was originally hailed by Congressional Democrats.

Posted by: Leslie Pool | May 2, 2007 8:56:35 PM

Well now that most of you have killed this person even before he gets to trial, what the hell do we need the court systems? Now, don’t get me wrong I’m not supporting this guy, but what happened to “innocent UNTIL proven guilty”?????????? What happen to lets ‘see all the facts’ to make a conclusion? It seems it only apply to non- Republicans! And yes, there is a double standard today in our country’s political beliefs. I see it the voices on the web and in the news media. Even George Tenet stated in his newly released book, Iraq according to their information HAD WMD’S before we went to war! So sad so many people jump to conclusions without ALL the facts!

Posted by: Christine | May 2, 2007 10:23:22 PM

I wonder what the out cry would be like here if Sandy Berger had worked for Bush instead of Clinton and did what he did with stealing 'what could have been' very IMPORTANT National material? I do wonder what the out cry would be here and on other sites like this? I wonder!

Posted by: Christine | May 2, 2007 10:40:00 PM

Being an anti-fraud official, he probably figured his office would be the last place they'd be looking for fraud. Is it my immagination....or is all this corruption getting worse?

Posted by: Dave | May 4, 2007 3:36:08 PM

It is fraudulent for an anti-fraud official to be involved in fraudulent activity. But I like the syntax nonetheless.

Posted by: Germanized | May 4, 2007 6:50:41 PM

I worked for the U.S Government and few of my co-workers were currupt. Unfortunately, the one's who were, were the ones who controlled the purse and also the ones who had the power to fire the rank and file if they learned any of us were liable to blow the whistle. We had morgages and kids and couldn't afford to lose our jobs, especially when we knew no one would ever hire a whistle blower.

That's why so much of our tax money gets stolen. If we could just spend half of the amount that's stolen on insulated, protected auditors who are paid enough so they are not tempted to join the thieves, we could at least be sure the other half of the money would be available for what it was meant to do. These auditors should be an elite corp answerable only to Congressional committees staffed with equal numbers of Democratic, Republicans, and independants. But I guess that would be too logical and full proof and, of course, lobbyists would refuse to allow THEIR representatives in Congress to go along with it.

Posted by: jan | May 5, 2007 1:16:36 PM

Take it from me, an actual insider (now retired), the DOC IG office has been morally backrupt for decades.

Johnnie's predecessor, Frank DeGeorge, pleaded guilty in 1998
to criminal conflict of interest because of jobhunting activities with a major gov't contractor. That was probably the least of Frank's moral lapses. Like a true Republican bueracrat, he thought rules/laws were for other people.

Back when Johnnie was merely a manager, he was notorious for arranging audits in shopping paradises like NYC, where he mysteriously disappeared during the day while his auditors did the actual work.

Posted by: Former-DOC-IG | May 9, 2007 2:00:47 PM

As another former DOC-IG employee for many years, I totally agree with my fellow former colleague. It became so depressing working there that after many years I finally moved on. The culture was to promote people that you like rather than on experience and merit. I am so glad that this investigation is underway, I hope it really shakes things up. I also applaud the courage of those current and former employees that have turned Johnnie in.

Posted by: Another-Former-DOC-IG | May 11, 2007 11:00:26 AM

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