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ROBERT EMMETT SKERRY WAS ON THE CABLE TV COMMISSION FOR
MAYOR MICHAEL J. MCGLYNN
ROBERT EMMETT SKERRY WAS A SENIOR FRAUD INVESTIGATOR
WHEN A CERTAIN 501C3 WAS REPORTED TO BOB SKERRY HE DISMISSED IT AS:
"NOT THAT KIND OF FRAUD"
Robert Emmett Skerry, Jr.:
– A genuine commitment to the students and residents of Medford
– Always available to listen to all sides of the issues
– Senior Fraud Examiner, Office of the State Auditor’s Bureau of Special Investigations
please note: THE INVESTIGATOR HIMSELF, WHO WAS ON A CABLE ADVISORY COMMITTEE, CAME OUT AND SAID THE WORD FRAUD IN REFERENCE TO THAT FAILED 501C3
THINK ABOUT IT!
AND HOW ABOUT THAT OLD SLAP-ON-THE-WRIST MARTHA OVER AT CHANNEL 5
YA THINK CHANNEL 5 WILL DO ANY REPORTS ON MEDFORD? ha ha ha ha ha ha ha ha ha!
THE COMMONWEALTH OF MASSACHUSETTS
OFFICE OF THE ATTORNEY GENERAL
ONE ASHBURTON PLACE
BOSTON, MASSACHUSETTS 02108
(617) 727-2200
(617) 727-4765 TTY
www.mass.gov/ago
September 10, 2012 1
Attorney General’s Investigation into the Medford Housing Authority
Report On Findings, Enforcement Action and Additional Recommendations
On
September 16, 2011, the Attorney General’s Office began an
investigation into the management and procurement practices of Robert
Covelle, Executive Director of the Medford Housing Authority (MHA). The
following is a summary of the Office’s enforcement action, investigation
and findings, and recommendations for future reforms.
ENFORCEMENT ACTION
Civil fine issued against former MHA Executive Director Covelle and Covelle precluded from state employment
The Attorney General’s Office has entered into a civil agreement against Covelle.
In
the agreement, Covelle does not contest that he failed to adhere to the
Commonwealth’s procurement procedures in connection with two projects –
construction at the LaPrise Village and various security services
performed for the MHA beginning in the Fall of 2010. Covelle also does
not contest that he caused false statements to be made concerning the
procurement of both of those projects.
As a result, Covelle will pay a
civil penalty of $5,000 to the Commonwealth. Covelle also shall not
seek or hold any position as an employee of any federal, state, county
or municipal agency, authority, or other public entity located in the
Commonwealth of Massachusetts for the next six years.
In a separate action, Covelle also resigned as Executive Director of the MHA on May 18, 2012.
SCOPE OF INVESTIGATION AND FINDINGS
The
investigation was conducted by prosecutors from the Attorney General’s
Public Integrity Division and State Police assigned to the Attorney
General’s Office. The investigation included a review of thousands of
documents and interviews of dozens of witnesses.
Massachusetts
General Law c. 30B, establishes procedures to follow for most agreements
for acquisitions of supplies and services, dispositions of surplus
supplies, and real property acquisitions and dispositions by local
governmental bodies. Local housing authorities are considered
governmental bodies under the law. For contracts between $5,000 and
$24,999,
September 10, 2012 2
governmental bodies are required to
receive price quotes from at least three vendors and must award the
contract to the responsible vendor offering the best price. For
contracts over $25,000, governmental bodies are required to conduct a
formal advertised competition, and issue an invitation for bids (IFB) or
a request for proposals (RFP), among other steps. For construction
agreements, Massachusetts General Laws c. 149, §44A-J requires that
governmental bodies follow similar procedures designed to ensure the
integrity of publicly financed construction projects.
The
investigation revealed that Mr. Covelle failed to follow proper
Commonwealth procurement procedures in two separate cases. They were as
follows:
Procurement of Security Services from Alliance Detective and Security Service
In
August 2009, Covelle contacted Alliance Detective and Security Service
(“Alliance”), seeking part-time security coverage for MHA’s Walkling
Court property. The parties agreed Alliance would provide a security
guard at Walkling Court seven days a week, five hours a day, at $19.00
per hour, beginning on August 20, 2009. Alliance Executive Director Rick
Topham emailed Covelle a Security Services Agreement reflecting these
terms.
On October 20, 2009 Covelle requested additional security
coverage for MHA properties from Alliance beyond the terms of their
contract, including at Willis Avenue and MHA headquarters at 121
Riverside Avenue. Alliance was never asked for nor submitted a written
bid for this additional work. Alliance invoices demonstrate the number
of hours billed to MHA increased over time despite the fact that the
contract was never amended to reflect the change in terms.
In May
2010, Covelle again asked Alliance to provide additional security
services for MHA – this time at the LaPrise Village development.
Although Alliance provided an email price quote for this supplementary
work, neither party updated the original Security Services Agreement.
Additionally, Alliance provided security services to the MHA at two
additional locations on Allston Street including Tempone Manor.
Overall,
Alliance billed MHA an estimated $140,000 - $150,000 for security
services from August 2009 – November 2011. There is no indication that
any of the critical G.L. c. 30B procedures outlined above were followed
in the procurement of these security services.
In June 2011, when the
Massachusetts Division of Housing and Community Development (DHCD)
first approached Covelle and MHA about management and procurement
issues, Alliance composed a new agreement that included all the
locations where Alliance was working. Covelle also requested that
Alliance backdate the agreement to when Alliance first began securing
MHA properties, which Alliance agreed to do.
Procurement in connection with LaPrise Village
In
the fall of 2010, Covelle and his subordinates hired Capitol
Contracting to begin a construction project on the basement walls at the
LaPrise Village, an MHA property. There is no evidence that any of the
procurement requirements mandated by G.L. c. 149 were followed.
September 10, 2012 3
The
basement wall construction was to be paid for by DHCD under a special
work plan approved for federalization costs at LaPrise Village. After
the project was completed in the summer of 2011, Covelle, with
assistance from a subordinate, arranged for the creation of false
procurement-related documents and on August 2, caused those fraudulent
documents to be sent to DHCD to secure the DHCD funds.
The fraudulent
documents were concocted in an effort to suggest that a semblance of
the proper procurement process had been followed in connection with the
hiring of Capitol for construction work on the basement walls at the
LaPrise Village Development. The fraudulent documents included an
invoice from Capitol to MHA, a list of bids, and a contract between MHA
and Capitol, all of which were created long after the construction
began, and back-dated to the Fall of 2010.
Overall, MHA paid Capitol approximately $84,000 for the basement work conducted at LaPrise Village.
RECOMMENDATIONS
Mandated procurement training for all Housing Authority personnel who oversee capital projects
A
common theme in interviews with Mr. Covelle and others at the MHA was a
claimed lack of understanding of the Commonwealth’s procurement
requirements. We fear this lack of understanding reflects a potential
wider problem at Housing Authorities across the Commonwealth.
The
Commonwealth’s Inspector General’s (IG) Office offers trainings on the
procurement law to public employees charged with the oversight of
construction and other capital projects. Employees charged with the
oversight of school construction projects, for example, are required by
statute to attend regular trainings.
The Attorney General’s Office
recommends that all Housing Authority Executive Directors and other
Housing Authority staff charged with the oversight of capital projects
should be mandated to attend the IG’s procurement trainings. This will
help ensure the financial integrity of the millions of dollars in
capital projects executed by Housing Authorities across the
Commonwealth. It will also foster further accountability for those
employees if they violate these laws following completion of such
training.
