ResIpsa's Open Salon Blog

IIF Data Solutions, Charles Patten, Fraud, Tax Evasion

Mon, 6 Jun 2011 10:06:44 -0400

~ THE DEPOSITION OF SARAH PATTEN ~

The following is the deposition of Sarah Patten as sworn under oath. Sarah is the daughter of Charles R. Patten, Sr. and Deborah Patten. Charles R. Patten, Sr., was a former National Guardsman and current owner of IIF Data Solutions, Inc.

Sarah was a naïve girl who in her innocence threw her father under the proverbial bus by detailing her father’s fraudulent activity. Charles R. Patten, Sr., and Deborah Davis Patten knew no limits to their deviant behavior as they knowingly and willfully perverted their own daughter, and potentially other family members and friends, by having her perform criminal acts.

The criminal acts consist of 401k fraud and tax evasion. The IRS requires 401k’s to be deposited into with “earned income.” By moving the gross revenue earnings from the bottom line into the fringe benefits accounting pool the Patten's gave the illusion that expenses associated with the fringe benefit of a 401k account had been incurred.

The 401k fraud and tax evasion becomes substantial when you consider the potential of $16,500 for each 401k, over 10 years with a number of family members and friends afforded the ability to “max out” their 401k’s with unearned income. This does not account for the abuse of Self Employed Pensions (SEP’s), which has the same fundamental requirements of a 401k. A significant difference with a SEP is the annual ceiling amount one can invest is $49,000.

UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF VIRGINIA

- - - - - - - - - - - - - - - - -x

UNITED STATES EX REL. THOMAS UBL,:

Qui Tam Relator, :

vs. : Civil Action No.:

IIF DATA SOLUTIONS, and : 1:06cv64ILOG/TRJ

CHARLES PATTEN, SR., :

Defendants. :

- - - - - - - - - - - - - - - - -x

Alexandria, Virginia

Monday, September 10, 2007

The deposition of SARAH PATTEN, called for

examination by counsel for Qui Tam Relator in the

above-entitled matter, pursuant to Notice, in the

offices of DiMuro Ginsberg, 908 King Street,

Alexandria, Virginia, convened at 9:55 a.m., before

Cathy Jardim, a notary public in and for the

Commonwealth of Virginia, when were present on behalf

of the parties:

APPEARANCES:

On behalf of the Qui Tam Relator:

STEPHEN J. STINE, ESQ.

DiMuro Ginsberg, PC

908 King Street

Alexandria, Virginia 22312

(703) 684-4333

On behalf of the Defendants:

JASON N. WORKMASTER, ESQ.

TODD J. CANNI, ESQ.

McKenna Long & Aldridge, LLP

1900 K Street, N.W.

Washington, D.C. 20006

(202) 496-7422

C O N T E N T S

EXAMINATION BY COUNSEL FOR

WITNESS QUI TAM RELATOR DEFENDANTS

SARAH PATTEN 4 --

E X H I B I T S

S. Patten Deposition Exhibits MARKED

No. 1 14

No. 2 16

No. 3 17

No. 4 18

No. 5 19

No. 6 20

No. 7 23

1 P R O C E E D I N G S

2 Whereupon,

3 SARAH PATTEN

4 was called for examination by counsel for Qui Tam

5 Relator and, having been first duly sworn by the

6 notary public, was examined and testified as follows:

7 EXAMINATION BY COUNSEL FOR QUIT TAM RELATOR

8 BY MR. STINE:

9 Q. Could you please state your name for the

10 record?

11 A. Sarah Patten.

12 Q. What is your current employment situation?

13 A. I work for IIF Data Solutions.

14 Q. How long have you worked there?

15 A. Two years steadily right now. A few more on

16 and off.

17 Q. So you have been there approximately two

18 years from today's date?

19 A. Yes.

20 Q. And what were the time periods before that

21 that you worked for the company?

22 A. In the summer of 2002.

1 Q. Any other timeframe?

2 A. 2005 until now.

3 Q. I apologize. I was going to go over some

4 opening deposition instructions. Have you ever been

5 deposed before?

6 A. No.

7 Q. Just so you know, kind of as we discussed

8 before, your attorneys may actually make some

9 objections. That doesn't mean you don't answer the

10 question. You continue to answer unless they

11 instruct you otherwise.

12 Are you under any type of medication --

13 A. No.

14 Q. -- that would affect your ability to

15 testify?

16 A. No.

17 Q. What is your current responsibilities with

18 the company?

19 A. I do payroll.

20 Q. Is that entirely your responsibility?

21 A. Yes.

22 Q. Do you work with any other individuals doing

1 payroll?

2 A. I am training someone now, yes, but up to

3 now it has been just be, and I work with Kim Trimble

4 a little bit.

5 Q. Who is your supervisor?

6 A. Kim Trimble.

7 Q. What did you do in the summer of 2002?

8 A. I was a receptionist.

9 Q. Who was your supervisor at that time?

10 A. At that time, Kim Trimble as well.

11 Q. Are you aware of who the officers were in

12 the company when you were hired in 2002?

13 A. No.

14 Q. Do you know your father's position in the

15 company at that time?

16 A. Vice president.

17 Q. Do you know who -- what was your mother's

18 role in the company, if you know?

19 A. She was president.

20 Q. Do your mother and father still hold the

21 same relationship, to your knowledge?

22 A. Yes.

1 Q. They still hold the same positions in the

2 company.

3 Do you know of an individual named Maury

4 Mayfield?

5 A. I have heard of him.

6 Q. Have you met him?

7 A. No.

8 Q. Do you know what his role is, if any, in

9 IIF?

10 A. No.

11 Q. These questions I am going to ask you for

12 now are strictly related to your time in the summer

13 of 2002, that timeframe. You were a receptionist

14 there. Describe your daily activity.

15 A. Anything that anybody may need help with,

16 faxing, making copies, sending out mail, answering

17 phones.

18 Q. Who did you interact with on a daily basis

19 in the office as far as employees?

20 A. Anybody who walked in the front, to say hi.

21 Q. Do you know who are the sales -- who were in

22 the sales department at IIF in 2002?

1 A. No.

2 Q. Do you know who wrote proposals or requests

3 for proposals?

4 A. No.

5 Q. Do you know who took sales calls?

6 A. No.

7 Q. Do you know who undertakes any of those

8 activities now?

9 A. No.

10 Q. Do you know of anyone who created marketing

11 materials in the summer of 2002?

12 A. No.

13 Q. Do you know of anyone who hired or reviewed

14 for business development?

15 A. No.

16 Q. Are you aware of a publication called the

17 Federal Business Opportunity?

18 A. No.

19 Q. Do you know of anyone in the summer of 2002

20 who recruited employees for team positions?

21 A. No.

22 Q. Did you have any HR, human resources,

1 responsibility in the summer of 2002?

2 A. No.

3 Q. Are you familiar with what contracts IIF was

4 performing in the summer of 2002?

5 A. No.

6 Q. Are you familiar with the term labor

7 categories?

8 A. No.

9 Q. If I tell you -- does the -- have you ever

10 heard of the contract, the IT schedule contract,

11 information technology schedule contract?

12 A. No.

13 Q. Were you aware that the company in 2002 had

14 contracts with the GSA, the General Services

15 Administration?

16 A. Yes.

17 Q. Did you have any interaction with any GSA

18 officials?

19 A. No.

20 Q. Do you know what labor category you were

21 classified in the summer of 2002?

22 A. No.

1 Q. Do you know a labor category in which you

2 are classified presently?

3 A. I am not sure about labor category. I was

4 in payroll.

5 MR. CANNI: I would object to that, Stephen.

6 You should clarify if she even knows what labor

7 category means, if she is under a labor category.

8 MR. STINE: I think I asked that earlier and

9 she said she didn't know. I was just trying to probe

10 further.

11 MR. CANNI: I think her response was how she

12 would describe her position she holds. I don't know

13 if she understands the difference.

14 BY MR. STINE:

15 Q. Just to clarify for the record, do you

16 understand what a labor category is?

17 A. No.

18 Q. Are you presently in college or getting some

19 type of other higher education?

20 A. No.

21 Q. Were you in the summer of 2002?

22 A. Yes.

1 Q. Where did you attend -- was it college?

2 A. Yes, Northern Virginia Community College,

3 and New River Community College.

4 Q. North Virginia and what was the other one?

5 A. New River.

6 Q. Is New River also a Virginia college?

7 A. Yes.

8 Q. New River Community College?

9 A. Yes.

10 Q. What were the dates that you attended

11 college there at those two locations -- let's just

12 start with Northern Virginia Community College. When

13 did you attend there?

14 A. Fall 2001. Didn't go there in 2002. That

15 is when I went to New River, and New River was August

16 2002.

17 Q. So you attended Northern Virginia Community

18 College for the fall semester?

19 A. In 2001.

20 Q. And the spring semester, did you attend

21 there?

22 A. No.

1 Q. And then you started at New River Community

2 College in August 2002?

3 A. Right.

4 Q. How long did you continue to go there?

5 A. I was there for three years.

6 Q. Have you attained a degree?

7 A. No.

8 Q. During your time in the summer of 2002, were

9 you familiar with what type of task order you were

10 performing under?

11 A. No.

12 MR. WORKMASTER: Objection. Are you

13 assuming she is working under a task order?

14 BY MR. STINE:

15 Q. First question is do you understand what a

16 task order is?

17 A. No.

18 Q. How did you keep track of the hours for

19 which you were working in the summer of 2002?

20 A. Time cards.

21 Q. Who would you submit those time cards to?

22 A. Kim Trimble.

1 Q. What about presently, how do you keep track

2 of your hours?

3 A. Time cards as well.

4 Q. And who do you submit those to?

5 A. To Cindy Thomas.

6 Q. Is there anyone else who would have approved

7 time cards?

8 A. Kim Trimble. She approves them and they go

9 on to Cindy.

10 Q. Would your mother have ever approved time

11 cards for you?

12 A. No.

13 Q. What documents have you reviewed in

14 preparation for this deposition, if any?

15 MR. CANNI: I would object here to the

16 extent that it calls for materials protected by the

17 attorney-client work-product privilege.

18 In terms of your response, it would be

19 limited to any documents that I haven't shown you or

20 that Jason hasn't shown you.

21 THE WITNESS: None.

22 BY MR. STINE:

1 Q. Have you ever reviewed the amended

2 complaint?

3 A. No.

4 Q. Or any complaint in this case?

5 A. No.

6 Q. Now, you mentioned you began work in the

7 summer of 2002, for the first time, for IIF?

8 A. Yes.

9 Q. Do you know precisely what month that began,

10 that work began?

11 A. July, the end of July.

12 Q. 2002?

13 A. Yes.

14 (S. Patten Exhibit No. 1

15 was marked for identification.)

16 BY MR. STINE:

17 Q. Have you ever seen this document before?

18 A. No.

19 Q. Could you find your name on this document?

20 It is in alphabetical order, it should be 23.

21 A. Okay.

22 Q. Can you go across the column to where it

1 says start?

2 A. Yes.

3 Q. What is the date on there?

4 A. 7/10/2001.

5 Q. Why does this document say that you began

6 for work for the company in 2001?

7 A. My father put us on payroll to max out my

8 401(k).

9 Q. Did you have any conversations with your

10 father about doing this?

11 A. No.

12 Q. How were you aware that he was doing this?

13 A. At the time I was not aware he was doing it.

14 Q. Do you know how your hours in the summer of

15 2002 were billed to the government?

16 A. No.

17 Q. Do you know what category, how they were

18 classified --

19 MR. WORKMASTER: Objection. Your question

20 assumes they were billed to the government. I don't

21 know that she stated that she knows they were.

22 BY MR. STINE:

1 Q. Do you know how they were billed?

2 A. No.

3 Q. Are you familiar with overhead?

4 A. Yes.

5 Q. Do you know whether your hours were

6 classified as overhead?

7 A. I believe they were.

8 Q. What is your understanding of overhead?

9 A. It is money that -- IIF money, for corporate

10 overhead they can do. I guess it is money that is

11 theirs.

12 MR. STINE: Can you mark this as Exhibit 2?

13 (S. Patten Exhibit No. 2

14 was marked for identification.)

15 BY MR. STINE:

16 Q. Have you seen this document before?

17 A. No.

18 Q. Who approved this document?

19 A. My mother.

20 Q. Wasn't Kim Trimble supposed to approve these

21 documents, your time sheets?

22 A. I am not sure.

1 Q. What is the date of this pay period?

2 A. September 1 through September 15, 2001.

3 Q. What work were you performing for the

4 company during this time?

5 A. I wasn't.

6 Q. What are the total hours on this time sheet?

7 A. Forty-two.

8 Q. Do you have an understanding of why you had

9 a time sheet during this time period?

10 A. No.

11 MR. STINE: Can you mark this as Exhibit No.

12 3.

13 (S. Patten Exhibit No. 3

14 was marked for identification.)

15 BY MR. STINE:

16 Q. Could you identify this document?

17 A. It is a time card.

18 Q. Who approved it?

19 A. My mother.

20 Q. Is this a time card for your services?

21 A. Yes.

22 Q. What is the pay period date?

1 A. October 16 through 31, 2001.

2 Q. Did you work for IIF during this timeframe?

3 A. No.

4 Q. How many hours were submitted for you on

5 this time card?

6 A. Ninety-six.

7 Q. Did you perform any of the hours?

8 A. No.

9 Q. Do you know why the hours are listed as

10 overhead?

11 A. To max out the 401(k).

12 MR. STINE: Exhibit 4.

13 (S. Patten Exhibit No. 4

14 was marked for identification.)

15 BY MR. STINE:

16 Q. Could you identify this document?

17 A. Time card.

18 Q. For whom?

19 A. For me.

20 Q. What is the pay period dates?

21 A. November 1 through 15, 2001.

22 Q. How many total hours are shown on this time

1 card?

2 A. Eighty-eight.

3 Q. Did you perform any of the hours listed on

4 this time card?

5 A. No.

6 MR. STINE: Exhibit 5.

7 (S. Patten Exhibit No. 5

8 was marked for identification.)

9 BY MR. STINE:

10 Q. Can you identify this document, please?

11 A. It is a time card.

12 Q. Whose time card is it?

13 A. Mine.

14 Q. What are the dates of the pay period for

15 this time card?

16 A. November 16 through 30, 2001.

17 Q. And if you can read it, what is the total

18 hours for this pay period?

19 A. Eighty-eight.

20 Q. And did you perform any of the work

21 listed -- the hours listed in this time card?

22 A. No.

1 MR. CANNI: Steve, for purposes of time, I

2 am willing to stipulate that her answers would be the

3 same --

4 MR. STINE: I have one more.

5 (S. Patten Exhibit No. 6

6 was marked for identification.)

7 BY MR. STINE:

8 Q. Could you identify this document?

9 A. Did you say my name?

10 Q. Can you identify the document?

11 A. It is a time card.

12 Q. Whose time card is it?

13 A. Mine.

14 Q. What are the dates?

15 A. December 1 through December 15, 2001.

16 Q. How many hours are listed, total hours

17 listed?

18 A. Eighty.

19 Q. Did you work any of the hours that are

20 listed for this time card?

21 A. No.

22 Q. Do you know who has ownership interest in

1 IIF?

2 A. No.

3 Q. Do you know whether your father and mother

4 have ownership interest?

5 A. I am not sure what that means, ownership

6 interest.

7 Q. The percentage of the company that they own,

8 if any, do you have any awareness of that?

9 A. I am not sure.

10 Q. What was your mother's role, if any, at IIF

11 during the summer of 2002?

12 A. She was the president.

13 Q. How often was she at corporate

14 headquarters -- how often was she in corporate

15 headquarters during that time?

16 A. When I was there? Never.

17 Q. What type of work would she perform for IIF

18 during that period of time, if any?

19 A. I am not sure.

20 Q. What type of work does she currently perform

21 for the company, if any?

22 A. I am not sure.

1 Q. Is your mother there on a daily basis while

2 you are at the office?

3 A. No.

4 Q. Do you have any communications with your

5 mother related to IIF business?

6 A. No.

7 Q. Did you know Mr. Tom Ubl during your time

8 with IIF?

9 A. Yes.

10 Q. How did you know him?

11 A. I worked there for a short time while he was

12 in the office.

13 Q. Did you have any interaction with him?

14 A. Just casual, good morning, how was your

15 weekend? talk.

16 Q. Did you have any idea what his position was

17 in the company?

18 A. No.

19 Q. Or his job responsibilities in the company?

20 A. No.

21 Q. Are you currently in school as well?

22 A. No.

1 Q. Are you working for IIF full-time?

2 A. Yes.

3 Q. Do you have any other businesses or side

4 business or other jobs that you work?

5 A. No.

6 Q. What about in the summer of 2002?

7 A. Yes, in the summer I worked as a nanny.

8 Q. Who did you nanny for?

9 A. Kim Trimble.

10 MR. STINE: This is three copies of the same

11 exhibit.

12 (S. Patten Exhibit No. 7

13 was marked for identification.)

14 BY MR. STINE:

15 Q. Can you identify this document?

16 A. It is an application for employment.

17 Q. Have you seen it before?

18 A. When I filled it out.

19 Q. And when did you fill this application out?

20 A. May 28, 2003.

21 Q. If I could direct you to the third page of

22 this document. If you look at the top portion of the

1 document, appears to be some directions. What do

2 those directions ask you to do?

3 A. Please provide information on your last

4 three employers, listing most-current position first.

5 Q. Why did you not list your prior employment

6 with IIF?

7 A. I don't know.

8 Q. Did anyone instruct you not to list that

9 employment?

10 A. No.

11 Q. Did anyone help you in filling out this

12 application?

13 A. No.

14 Q. Was this application -- was this an

15 application you filled out in conjunction with your

16 current job as a receptionist?

17 A. I am sorry.

18 Q. Is this the application for which you

19 received your current job as a receptionist?

20 MR. CANNI: Objection. That is confusing.

21 BY MR. STINE:

22 Q. You filled this application out in May of

1 2003?

2 A. Yes.

3 Q. Did you receive a job based upon this

4 application?

5 A. No.

6 Q. When were you hired for the job that you are

7 currently working?

8 A. Currently, today?

9 Q. Yes.

10 A. 2005.

11 Q. Why were you not hired at this time, in

12 2003, when you filled out this application?

13 A. I don't know.

14 MR. CANNI: Objection. I think you are

15 assuming she wasn't hired at that time.

16 MR. STINE: She just explained she wasn't.

17 MR. CANNI: Her answer was she wasn't hired

18 for her current position at that time.

19 BY MR. STINE:

20 Q. Were you hired based upon this application

21 in May 2003?

22 MR. CANNI: Objection again. I think you

1 are having some problems with the date of this. I

2 think you should ask her about that.

3 BY MR. STINE:

4 Q. In May 2003, were you hired based upon this

5 application by IIF?

6 A. No.

7 Q. Were you ever hired into IIF prior to 2005,

8 not including the summer of 2002?

9 A. No.

10 Q. Do you know why you were not hired in May of

11 2003, based upon this application?

12 A. No.

13 Q. Now, on page 3, you list Kim Trimble as a

14 current employee. How long had you been a nanny for

15 Kim Trimble?

16 MR. WORKMASTER: Objection. I don't believe

17 that is necessarily showing she is listing Kim

18 Trimble as her current employer.

19 BY MR. STINE:

20 Q. Was Kim Trimble your employee at the time

21 you filled out this application -- employer, in 2003?

22 A. No.

1 Q. When was the last time you had worked for

2 Kim Trimble as her nanny?

3 A. July 2002.

4 Q. To the best of your recollection, give me

5 the entire time period for which you worked for Kim

6 Trimble as her nanny?

7 A. February to July 2002.

8 Q. Were you working for Kim Trimble full-time

9 in that timeframe, February to July 2002?

10 A. Three days a week.

11 Q. What days of the week were there?

12 A. Monday, Wednesday and Friday, I assume, but

13 they varied.

14 Q. How many hours would you put in per day

15 usually?

16 A. Eight.

17 Q. Were you working in any other type of

18 capacity during that timeframe?

19 A. No.

20 Q. When did you conclude nannying for her, was

21 it beginning of July 2002, middle, end?

22 A. Beginning, middle of July.

1 Q. When did you start -- what month did you

2 start employment with IIF in the summer of 2002?

3 A. July.

4 Q. Did your job with IIF and your job nannying

5 overlap?

6 A. No.

7 Q. In the timeframe February 2002 through July

8 2002, were there any months that you weren't nannying

9 or any significant time period that you did not nanny

10 for Kim Trimble?

11 MR. CANNI: Objection to form.

12 If you understand the question, you can

13 answer it, but I didn't understand the question.

14 BY MR. STINE:

15 Q. I am simply asking, in that timeframe,

16 February to July 2002, was there any point where you

17 stopped nannying for a certain period of time?

18 A. No.

19 Q. To the best of your recollection, did you

20 nanny in the April 2002 timeframe for Kim Trimble?

21 A. Yes.

22 Q. Including the period between April 1 and

1 April 15 of 2002?

2 A. Yes.

3 Q. Do you have any relationship with Kim

4 Trimble outside of work?

5 A. Being her nanny and a friend, yes.

6 Q. When did you first meet her?

7 A. 2001.

8 Q. Was she working for IIF at that time?

9 A. I don't recall.

10 Q. How did you come to meet her?

11 A. I don't remember -- when she interviewed,

12 when the business was in my house.

13 Q. Did anyone at IIF ever ask you or inform you

14 that your babysitting hours, your nannying hours,

15 would be charged to any contract that they had with

16 the government?

17 A. No.

18 Q. Have you ever reported hours on your time

19 sheets that you did not work?

20 A. No.

21 Q. What about the hours I showed you in

22 Exhibits 3 through 6, did you work any of those

1 hours?

2 A. No.

3 Q. Do you have any awareness of any commercial

4 business that IIF performed in 2000 -- summer of

5 2002?

6 A. No.

7 MR. WORKMASTER: Objection. I don't think

8 she knows what a commercial business is.

9 BY MR. STINE:

10 Q. Do you understand what a commercial business

11 is?

12 A. No.

13 Q. Are you aware of any extramarital

14 relationship that your father has with Kim Trimble?

15 MR. CANNI: Objection. I think this

16 question has no other purpose than to embarrass and

17 harass the witness.

18 BY MR. STINE:

19 Q. You can answer.

20 A. No.

21 Q. Are you familiar with any of your

22 father's -- are you familiar -- does your father have

1 any other business interests that you are aware of?

2 A. I am sorry.

3 Q. Besides IIF, does your father have any other

4 businesses?

5 A. Yes.

6 Q. What businesses does he have?

7 A. AutoHouse Web.

8 Q. What is AutoHouse web?

9 A. Like a car dealership.

10 Q. Where is AutoHouse located?

11 A. In Manassas.

12 Q. Are there any other locations that you are

13 aware of?

14 A. No.

15 Q. What type of vehicles are sold there?

16 A. Any kind you want.

17 Q. What is your father's position in that

18 company?

19 A. I am not sure.

20 Q. Are you aware of any ownership interest he

21 has in the company?

22 A. I don't know.

1 Q. Do you know who else -- who his other

2 associates or colleagues are in the company?

3 A. Yes.

4 Q. Who is that?

5 A. James Hess and Mike Squire.

6 Q. James Hess and Mike --

7 A. Squire.

8 Q. S-Q-U-I-R-E?

9 A. I am not sure.

10 Q. Does AutoHouse Web have any online business

11 that you are aware of?

12 A. They have a Web site.

13 Q. Have you ever -- does your father attend car

14 auctions at times to buy or purchase vehicles?

15 A. Yes.

16 Q. Have you ever attended any car auctions with

17 him for the purpose of purchasing inventory?

18 A. No.

19 Q. Do you know where these car auctions are

20 located, where they take place?

21 A. Manheim.

22 Q. Any other locations that you are aware of?

1 A. No.

2 Q. Have you ever assisted your father in

3 transporting purchased cars from car auctions?

4 A. No.

5 MR. STINE: I have no further questions. Do

6 you?

7 MR. CANNI: No. We will review the

8 transcript, and if she has any edits, we will get

9 back to you.

10 (Whereupon, at 10:33 a.m., the taking of the

11 deposition was concluded.)

12 (Signature not waived.)

CERTIFICATE OF NOTARY PUBLIC

I, CATHY JARDIM, the officer before whom the

foregoing deposition was taken, do hereby testify

that the witness whose testimony appears in the

foregoing deposition was duly sworn by me; that the

testimony of said witness was taken by me

stenographically and thereafter reduced to a

transcript under my direction; that said deposition

is a true record of the testimony given by the

witness; that I am neither counsel for, nor related

to, nor employed by any of the parties to the action

in which this deposition was taken; and further, that

I am not a relative or employee of any attorney or

counsel employed by the parties hereto nor

financially or otherwise interested in the outcome of

the action.

______________________

Cathy Jardim

Notary Public in and for the

Commonwealth of Virginia

My commission expires:

July 31, 2010

GSA and OMB Cause Private Sector Job Loss

Sat, 26 Mar 2011 18:03:15 -0400

Is the government disadvantaging the disadvantaged? While the Small Business Administration (SBA) establishes socio-economic programs such as small disadvantaged, service disabled veteran owned, woman owned, native American and HUB Zones to enable the various business types an equal opportunity, the General Services Administration (GSA) is in the process of putting over 500 small and disadvantaged companies, including Disabled Vets and Native Americans, representing over 5,000 jobs, out of business.

Just ask Richard Finn a U.S. Air Force Veteran and owner of Midwest Office Supply. Finn is the little guy, the underdog; the small business owner that at one time represented the heart and soul of the American workplace. “I have lost 69% of my employees said Finn. His revenue has been reduced by 47%, which forced a reduction in pay to all remaining employees. Making matters worse Finn had to cancel all healthcare coverage for all of his employees including him. There are hundreds of stories similar to Finn’s that describe how the GSA has forced bankruptcy, cost a trained workforce and at all junctions has gone above and beyond to kill off the little guy and reward corruption.

The GSA’s Multiple Award Schedule (MAS) contracts program enables the government and military to buy almost every imaginable product or service under the sun. The different products and services are broken down into classes. Class 75 represents Office Supplies and Services, which Mr. Finn and over 500 other companies belong. When a company wants to participate in the GSA MAS program they have to enter a vetting process that usually requires the company to hire consultants at thousands of dollars to help navigate the requirements.

The result is an award of a GSA Schedule, a contract that is considered fulfillment of competition. Yet, the GSA has recently taken a select “preferred” portion of the class 75 participants and formed a group cooperative inside of class 75 under what is referred to as a Blanket Purchase Agreement (BPA) in order to meet objectives defined by Dan Gordon at the Office of Management and Budget (OMB) and the Federal Strategic Sourcing Initiative (FSSI).

The GSA did not notify or allow all of the class 75 participants that were already awarded a GSA Schedule contract who may have wanted to participate in the FSSI BPA an opportunity to submit a proposal. In fact the GSA only selected 15 companies, including Office Depot and Staples, out of 516 companies. Further, GSA has put a 2 year freeze on considering any additional companies wanting to offer products or services under class 75.

GSA now only markets the FSSI BPA as the go to for all government and military office needs leaving the remaining 500 contractors out in the cold during these harsh economic times. Harsh economic times that can pay for every single bowel movement in the Middle East, but can’t take care of our own back here in the good ole U.S. of A. These restrictive actions come at the expense of over 500 companies who went through a vigorous process to participate as a GSA contractor.

GSA Schedules Specialist, Tom Ubl said “the GSA MAS program was intended to cut through red tape. It was supposed to be the ultimate example of what the government claimed to be as the contracting flagship under the Competition in Contracts Act (CICA) and Federal Acquisition Streamline Act (FASA). It now appears that the GSA has joined with OMB in the killing off of small business and the middle class by using the GSA Schedules contracting program to inflict an economic genocide on small and disadvantaged businesses. Shame, shame, shame on any administration who engages in such practices.”

Today you can only scratch your head at what is going on over at the General Services Administration (GSA). It smells of collusion, cronyism and is ripe for kickbacks and antitrust violations. It would do Martha Johnson, the current GSA Administrator, well to remember what happened to her predecessor Lurita Doan who used the GSA MAS program to funnel millions of dollars to a number of Political Action Committee’s (PAC’s).

Are you still proud to be an American as you stand idly by and do nothing as 5,000 jobs are lost at the hands of our government? Take a stand, contact your congressional representatives and inform them about what is happening and tell them that you want action.

WWW.USA.Gov for quick reference to contact your Congressional Representative.

Contact the following government personnel and tell them what you think.

Joyce Branda, DOJ (202) 514-3301
Email: joyce.branda@usdoj.gov

Dan Gordon, OMB (202) 395-5802
Email: lpappas@omb.eop.gov

Jack Kelly, OMB (202) 395-5802
Email: john_w._kelly@omb.eop.gov

Brian Miller, GSA IG (202) 501-0450
Email: brian.miller@gsa.gov

Martha Johnson, GSA(202) 501-0800
Email: martha.johnson@gsa.gov

Proud American?

Wed, 23 Mar 2011 05:03:17 -0400

Administrator Martha Johnson of the U.S. General Services Administration (GSA) and Dan Gordon, Administrator, Office of Management and Budget (OMB), Office of Federal Procurement Policy are responsible for the termination of 500 small and disadvantaged businesses, to include Native Americans and Service Disabled Veteran Owned companies, resulting in the loss of 5,000 private sector jobs.

Making matters worse GSA and OMB have been funneling revenue derived from the GSA Schedules program to Office Depot and Staples even after the two mega-stores paid millions of dollars in out of court settlements after being sued for fraud under the False Claims Act (31 U.S.C. § 3729–3733) as related to violations of the Trade Agreements Act (19 U.S.C. § 2501–2581). Office Depot and Staples had been selling products made in China, which is prohibited under the terms and conditions of the GSA Schedules contract. GSA Inspector General, Brian Miller, refused to comment.

WWW.USA.Gov for quick reference to contact your Congressional Representative.

Contact the following government personnel and tell them what you think.

Joyce Branda, DOJ (202) 514-3301
Email: joyce.branda@usdoj.gov

Dan Gordon, OMB (202) 395-5802
Email: lpappas@omb.eop.gov

Jack Kelly, OMB (202) 395-5802
Email: john_w._kelly@omb.eop.gov

Brian Miller, GSA IG (202) 501-0450
Email: brian.miller@gsa.gov

Martha Johnson, GSA(202) 501-0800
Email: martha.johnson@gsa.gov

When Lawyers Lie: Ubl v IIF Data Solutions

Sun, 30 Jan 2011 17:01:03 -0500

CHARGES

Thomas M. Ubl, Plaintiff/Relator/Whistleblower and Private

Attorney General in the case of Ubl v IIF Data Solutions, Inc., hereby

charges the defense counsel representing defendant's Charles R. Patten,

Sr. and IIF Data Solutions, Inc. with multiple counts of perjury and

misrepresentations made to the U.S. Eastern District Court located in

Alexandria, Virginia and the U.S. Court of Appeals for the Fourth Circuit

located in Richmond, Virginia. Misrepresentations and perjury to include

assertions made regarding debarment requests, automatic debarment

policies and damage calculation amounts that resulted in the breach of an

$8.9 million dollar settlement ($11 million inclusive of interest), which in

part represented recovered tax dollars destine for the U.S. Treasury.

FACT SET

In the case of Ubl v IIF Data Solutions:

An $11 million dollar settlement, inclusive of interest, was offered by the defendants Charles R. Patten, Sr. and IIF Data Solutions, Inc., and accepted by the Whistleblower, Thomas M. Ubl.

The settlement was constructed and executed in chambers as facilitated by Judge Liam O’Grady’s Magistrate Judge, T. Rawles Jones of the U.S. Eastern District Court located in Alexandria,VA.

The settlement was witnessed by Richard Sponseller an Assistant U.S. Attorney (AUSA) for the U.S. Department of Justice (DOJ).

Defendants Charles R. Patten, Sr. and IIF Data Solutions, Inc., started to make settlement payments in the cumulative sum of $1.5 million.

Evidence: Settlement Agreement

On March 24, 2009, defense attorney Jason N. Workmaster notified the court that Charles R. Patten, Sr. and IIF Data Solutions would be withdrawing the $1.5 million Charles R. Patten, Sr. and IIF Data Solutions had deposited as a partial payment made towards satisfaction of settlement and was not going to pay anymore.

Workmaster asserted there were new regulations that resulted in automatic referral for debarment. Reference page 2, paragraph 4.

Evidence: Breach of Settlement Notification

Ubl and counsel filed a motion to enforce the settlement agreement.

IIF defense attorney Chris I. Kachuroff attested, subject to perjury, that he was informed by Mr. Brian Persico, an Army Procurement Fraud Attorney, that former Congressman, and at the time lead attorney for Ubl, Alan Grayson had submitted a debarment request.

Kachouroff further detailed in his version of the phone calls a “back peddling” by Persico that was contrary to their initial phone call.

Kachouroff by his own admission recognized, as contained in item 8 of Exhibit 12, that an official Freedom of Information Act (FOIA) response from Persico stated that neither Ubl nor his counsel ever filed a debarment request.

Evidence: Exhibit 12

Another defense attorney, Robert Cynkar, during the settlement enforcement hearing, repeatedly accused Ubl of being a liar on the basis that a debarment request was filed against IIF Data Solutions.

Cynkar's oral argument came three months after, and with full knowledge of, Kachuroff’s Exhibit 12.

Cynkar had a full state of awareness of Exhibit 12 and knew that a debarment request by Ubl or any of his counsel never occurred.

Evidence: Hearing Transcript

Most recently all of IIF's defense counsel continue to propagate their false statements, misrepresentations, notions of debarment and automatic debarment, also commonly referred to as bold face lies, in their response brief to Ubl’s appeal that was recently heard before the U.S. Court of Appeals for the 4^th Circuit Court located in Richmond, VA, on January 25, 2011, Reference Case 09-2280.

Evidence: Defendant’s Appeal Brief, Reference bottom of pg. 14 top of pg. 15.

During the appeal hearing defense attorney Duane vehemently asserted accusation after accusation that debarment was automatic and that Ubl had made damage claims in the amount of $300 million all of which was regurgitate before the court, guised as the truth and proffered as fact, when in reality it was just that, regurgitation.

Unfortunately, IIF defense counsel was unaware that Ubl submitted a Freedom of Information Act (FOIA) request to the National Guard Bureau who in their formal response concluded that there was no debarment request ever received by Tom Ubl or Alan Grayson.

Evidence: Freedom of Information Act (FOIA) response from the National Guard Bureau

What the defense counsel also did not know was that Ubl had a phone call with Army Procurement Fraud Attorney, Persico. Persico told Ubl “Kachouroff grossly mischaracterized, fabricated and invented what Persico had conveyed to Kachouroff.”

Ubl compiled a Record of Discussion and forwarded it to Persico for review with instructions to edit anything contained in the record that was not accurately reflected. Persico made no changes.

Ubl was also informed by the Chief of the Army Procurement Fraud Branch, Ms. Christine McCommas, that the governing regulations Army Procurement Fraud Branch were required to follow regarding debarment had been in effect since September 19, 1994 and that there were no new regulations or any means for the Army Procurement Fraud Branch to automatically debar a contractor.

Evidence: Army Procurement Fraud Division Correspondence

CONCLUSION

IIF Data Solutions defense counsel lied. There was never a

debarment request submitted by Ubl or his counsel. There are no new

auotmatic debarment policies. Ubl never claimed $300 million in

damages and further contests that his statement of $140 million during

the lower court trial was referring to total sales made by IIF Data

Solutions for the period of fiscal year 2000 through fiscal year 2009.

DEFENSE COUNSEL CONTACT INFORMATION

Jason N. Workmaster
M CKENNA, LONG & ALDRIDGE, LLP
1900 K. Street, N.W.
Washington, D.C. 20006
(202) 496-7422

James J. Duane
Regent University School of Law
1000 Regent University Drive
Virginia Beach, VA 23464
(757) 352-4584

Christopher I. Kachouroff
D OMINION LAW C ENTER, P.C.
12741 Darby Brooke Ct, Suite 202
Lake Ridge, VA 22192
(703) 365-9900

Robert J. Cynkar
CUNEO, GILBERT & LADUCA, LLP
106-A South Columbus St.
Alexandria, VA 22314
(202) 587-5063

An Email to General Craig McKinley at the National Guard

Mon, 13 Dec 2010 06:12:26 -0500

From: Tom Ubl
Sent: Friday, December 10, 2010 8:30 AM
To: 'General Craig McKinley'
Subject: The Mission

Dear Craig,

I am feeling sentimental and thought I would share.

Do you remember Judge Frank Battisti http://en.wikipedia.org/wiki/Frank_J._Battisti? Battisti was the judge that exonerated the guard for the killings at Kent State. He is also the judge that exonerated my father.

My father was the 17^th officer inducted into the original 10^th Special Forces Group under the command of COL Aaron Banks, the founder of our Special Forces. Dad was recruited from psyops and was known as “Little Napoleon” at Ft. Bragg, where he wrote the training book used until 15 years ago.

Dad, after receiving his JD, started a manpower training program. His mission: Help Vietnam Vets get jobs. He formed a 13 company consortium in Cleveland, OH. As a child I would visit the VA and watch my father reach out to doped up shells of humanity chewed up by the machine. Those faces haunt me to this day. A Today Show airing detailed my father’s work, which was so effective in placing the vets into meaningful, often executive level positions, that it was starting to cause concern at the VA hospitals because of lack of head count and the impacts to funding.

The program was about to go national. Then a group of blacks within Ames at the Ohio Employment Bureau thought giving my father a quota of hiring 1 black for every 3 sent to him was a wise idea. Dad said “send me your vets I will hire them all.” It was not good enough, so they cried foul and bogus embezzlement charges were levied, when in fact it was monies obligated during the crossover of the CETA program to the JTPA under the new administration.

There were no speedy trial statutes and my father was destroyed by greed, corruption and jealousy. However, Judge Battisti dismissed the case after 12 years calling it “a persecution and not a prosecution, this has been a complete miscarriage of justice.” I have the same passion as my father. My Uncle was with the 187^th in Korea. Their kind were the real deal and as their legacy I am not going to stand idly by and watch a bunch of rogue guard rape taxpayer dollars and more importantly deprive funding that could be going to your title 10’s (guardsmen deployed internationally).

Incidentally, I have no beef with retaining the equivalent of corporate memory in the form of seasoned guard who are separating from active duty status as retained in the contractor holding pools. I do have a beef when a used car dealer who had no ambition past captain making references to “I have been handed a lollipop” is making unjust enrichment profits in excess of 60%, which could have been adjusted to reasonable levels resulting in many more placements. Every USP&FO should have me implement a Share-In-Savings program to monitor and reduce overheads. Your manpower availability would go through the roof.

So please excuse me while I cut out your cancers and hand you back a clean body. We could have and should have done this with a spirit of cooperation. I tried to reach out. All those inside your cadre flipping now and lining up with me and all of the attention IIF is getting is simply bad ju ju and not good for the guard image.

Sincerely,

Tom Ubl, Whistleblower

Ubl v IIF Data Solutions, Inc.

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Broken by it, I too may be; bow to it I never will. the probability that we may fall in the struggle ought not deter us from the support of a cause we believe to be just; it shall not deter me. --Abraham Lincoln