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DOE Official Eyed In Another Computer Contractor Scandal
By
Garth Johnston
Published May 4, 2011
Modified May 4, 2011
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By
Garth Johnston
Published May 4, 2011
Modified May 4, 2011
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For a technocrat with an inarguably successful business track record, Mike Bloomberg's administration sure keeps having problems with scheming computer contractors. On top of the epic $80 million CityTime scandal and the $3.6 million the DOE last week revealed it lost to a "housewife-next-door" loving computer contractor, a high-level DOE executive is now under investigation for "potential corruption and conflict of interest" regarding his relationship with a consulting firm that has a $43 million contract with the Department.
Special Commissioner on Investigation Richard Condon is seeking to clarify the relationship between the unnamed official and Tamer Sevintuna and Jonathan Krohe, the two principal officers of Florida-based Future Technology Associates (FTA). Though the official initially denied under oath having a personal relationship with the pair in April, he promptly took his denial back four days later.
Condon, partially thanks to some interesting Turkish data dug up by Juan Gonzalez and the folks at the Daily News, is investigating FTA for "using a hidden ownership of Krono [a Turkish subcontractor to FTA] to profit egregiously at the expense of DOE," according to an affidavit.
How egregious? Despite not having permission, the FTA subcontracted out its work to Krono, hiring at least six workers workers to do the companies work for it. The DOE paid FTA $110,400 for those six Turkish workers, but Turkish social security records show that the same workers were actually only paid $16,800. Which means the owners of Krono, who just happen to also own FTA, walked off with more $93,600 in extra cash. On top of all of that, Korhe and Sevintuna each received more than $300,000 annually from the DOE as senior managers of the FTA project. Very interesting!
The investigation into FTA and its relationship with the unnamed DOE official is still ongoing, so the DOE is declining to comment.
Tagged
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embezzlement
fta
Garth Johnston
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