"We won't hesitate to bang heads if we have to" ---Dan Hawke, Attorney for John Ervin from 1995-1999 The notion that the US taxpayers have been helping to finance Bin Laden and the Taliban does not come as a big supprise to Carolyn, Ozzie or me. We know from personal experience. HUD Secretary Cuomo issued what appear to be sole source negotiated contracts to Ervin in 1998 when Ervin's attorney was Dan Hawke, son of John D. ("Jerry) Hawke, then Undersecretary of Domestic Finance for Robert Rubin (Secretary) and Lawrence Summers (Deputy Secretary). Hawke was the person at Treasury in charge of federal credit policies. HUD's mortgage insurance programs are traditionally about 30-35% of federal credit), and now Comptroller of the Currency at Treasury, and throughout on the board of Neighborhood Reinvestment Corporation. As of October 2000, HUD had paid Ervin $808,000 for business consulting services under one of these contracting vehicles. That is approximately $33,000 a month. That number also is not an unreasonable estimate of the possible cost of the targeting of me by Ervin. According to news reports, HUD also gave him $2MM in late 2000 in a settlement on his litigation at HUD. According to recently unsealed court transcripts DOJ credits itself with helping to design in a 1996 time frame the litigation that DOJ used to give Ervin $2MM on in 2000, and keeping it protected from other court cases in which DOJ took opposite positions. One of the government officials sued in that case estimated that Ervin's legal expenses were approximately $1-3MM on that and related cases. A reporter who visited Ervin in last 1997, told me that he had 17 people who appeared to be working full time on targeting us in addition to the attornies, that the mailings that they had recieved over the last two years were quite voluminous and who was paying for all of this? Good question, I said. Through this period, HUD lost several billion a year as a result of intentionally shuting down loan sales and returning to a method of resolving defaulted loans that allowed far more flexibility in below market inside deals that could be done quietly. Were the contracts below (put through HUD's Ginnie Mae, the agency that securitizes all the FHA mortgages with Wall Street)a way for Hawke to get the taxpayers to pay his son to destroy internal financial controls at HUD? During the periods reported for the contracts with Ervin below, in Fiscal 1998, HUD reported "missing money" of $17 billion. In fiscal 1999, HUD reported "missing money" of $70 billion on the asset side and $59 billion on the liability side. One of the reasons that the "missing money" at HUD is so confusing, is because Treasury's records indicate that the cash balances are off by much less. Here is what a top government accountant had to say on this topic: "I would say that Treasury moving cash in/out is very possible. Most agencies are not able to reconcile its funds balances in its general ledger to those recorded by Treasury. There are MANY, MANY differences. The absolute value at HUD was $70 billion while the net value was $24 million for FY 1999. What's weird is that each agency completes an SF224 and reports its cash balances and transactions to Treasury. So, technically, Treasury should only be reporting back to you what you reported to them. In my years in CFO shops, I've never seen anyone be able to balance to Treasury. We accountants at the agencies are always told that Treasury's records are correct and we are not able to get support from Treasury as to what they have recorded that we have no record of. So, in the end, most agencies just adjust (write up/down) their cash balances to agree with Treasury - meanwhile, anyone could be taking money and you are suppose to just believe that Treasury makes no errors. I made the mistake of questioning Treasury and got my hands slapped many years ago. It's very easy to play with your cash accounts." Who runs the cash management operations at Treasury? That division is called FMS. Who does FMS report to? The UnderSecretary for Domestic Finance Who was that in 1998? John D. Hawke, father of Ervin's attorney, Dan Hawke. John Hawke is the former general counsel of the Federal Reserve. The Federal Reserve Bank of NY is the primary depository for the US government checking accounts. IN FY 2002, the President's budget is proposing to appropriate $1.383 trillion dollars to government agencies that according to both Senate and Congressional oversight committees have little or no financial and accounting system and disclosure integrity. A senior person at HUD recently told me that the career staff at HUD assume that Ervin is working for and paid by the government. Think about it. ========================================================================== HUD CONTRACTS TO ERVIN IN 1998 ======================================================================== OK, let me make sure I understand the timing. On October 8, Henry Hyde and his committee vote to move forward with impeachment. An hour later, the CIA posts Volume II of the Hitz Report on the Dark Alliance allegations In 24 hours, the Republicans indicate that the impeachment is over although they intend to go through the process. That day, October 9, Cuomo puts out a sole source contract to Ervin and Associates Four days later, Cuomo puts out a sole source contract to Ervin and Asset Strategies Do I have the dates right.....Can the end of the impeachment risk and the issuance of these contracts be a coincidence or something more? ============================================================================ ========= "From Alphabetical List of Current Ginnie Mae (Part of HUD) Contracts as of 10/25/2000" Provided by HUD CONTRACTOR: Ervin & Associates, Inc. 962 Wayne Avenue, Suite 300 Silver Springs, MD. 20910 Attn: John Ervin 240-464-2000; fax 240-464-2020 Contract No: GNMA-98-PP-02(2) Competition: Small Business Set-Aside Date of Execution: 10/9/98 Base Expiration: 10/8/2001 Option Periods: 2 one-options Purpose: Business Consulting Services Base Award Amount: $0 (NTE $6,700,000 on completed task orders) Option Award Amount $0 Amount Paid to Date $808,897.76 Classification: Small Business; 40% MWOB subcontracting GTR: Nick Shelley GTM: Linda Benjamin, Wilson Thompson, Mike Najujum, Tom Weakland, Brian Hooper, CONTRACTOR: Ervin & Associates/Asset Strategies Group 962 Wayne Avenue, Suite 300 Silver Springs, MD. 20910 Attn: John Ervin 240-464-2000; fax 240-464-2020 Contract No: GNMA-98-PP-01(3) Competition: Full and Open Date of Execution: 10/13/98, effective 10/27/98 Base Expiration: 10/26/2001 Option Periods: 2 one-options Purpose: Advisory Services Base Award Amount: $0 (NTE $23,700,000 on completed task orders) Option Award Amount $0 Amount Paid to Date $0 Classification: Small Business; 50% MWOB subcontracting GTR: Nick Shelley GTM: Linda Benjamin, Wilson Thompson, Mike Najujum, Tom Weakland, Brian Hooper,
