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Eye on the EPA: Others Involved in Beale Saga
February 7, 2014

In an effort to further inform the public on how convicted felon and former senior official of the U.S. Environmental Protection Agency (EPA), John Beale, got away with fraud and theft for at least thirteen years, EPW Republicans have conducted an exhaustive review of materials obtained through its own investigatory efforts to untangle the web of unaccountability that permeated the Agency.  Specifically, EPW Republicans have put into context the actions of additional EPA officials who played a prominent role in shaping EPA's response to Beale's fraud.

Beth Craig, Deputy Assistant Administrator for the Office of Air and Radiation (OAR)

Beth Craig was a Deputy Assistant Administrator (Deputy AA) in the Office of Air and Radiation at EPA from 2000 to 2010.[1]  According to documents obtained by EPW Republicans, in this position Craig worked closely with Beale, even reviewing and approving his travel vouchers.  Documents obtained by EPW Republicans show that Craig approved Beale's travel vouchers even when the vouchers requested reimbursement for excessive costs, contained personal charges, and sometimes did not have completed itineraries, and that Craig routinely approved vouchers that "exceeded ... $20,000 for a single trip."  In fact, Craig admitted that she handled Beale's vouchers "differently than others" and essentially did not review them.

Additionally, Craig had a role in the approval of Beale's timecards, [2] even when he was out of the office for long periods.  Documents obtained by EPW Republicans suggest that she approved and instructed staff to record and approve Beale's hours, even during the period of time when he did not report to EPA offices for six months.  According to documents obtained by EPW Republicans, Beale's assistant was instructed at different times by both Beale and Craig "to put Beale in for eighty (80) hours of work each pay period unless instructed otherwise."  Documents obtained by EPW Republicans show that when Beale's assistant brought her concerns about Beale's absences and the time entries to Craig, Craig explained to her that "Beale worked for EPA, but from a different location."

In the ten-year period in which she served as Deputy AA, she has admitted that she "held [him] to a different standard," according to documents obtained by EPW Republicans.

Craig Hooks, Assistant Administrator for the Office of Administration and Resources Management (OARM)

According to documents obtained by EPW Republicans, Hooks has maintained that "[he] had to give deference to Beale as a result of his position and reputation within EPA and OAR.  Beale was a Deputy Assistant Administrator with a history of good work and that no actions were going to be taken without the facts to support them."

Hooks first learned of Beale's pay issues in mid-2010, according to documents obtained by EPW Republicans.  Thereafter, OARM consulted with OAR on the issue of Beale's bonuses and independently began an inquiry into whether or not Beale had adequate documentation for the bonuses.  In January 2011, Hooks told McCarthy he wanted to consult with Deputy Administrator Perciasepe because he had signed off on Beale's bonus in 2000.  Documents obtained by EPW Republicans show that Hooks was advised by Arthur Elkins in the Office of the Inspector General at that time that the issue appeared to be a personnel issue and that the Agency, not the OIG, should handle it, which Elkins has corroborated.  Hooks then reviewed Beale's personnel file and found there was nothing in Beale's folder that would suggest he was CIA, though there was an SF-52 document signed by the Administrator who is not the normal signee of that type of form, which lead Hooks to believe the CIA story might be true.  According to OARM officials, Hooks also looked into seeing whether "the White House [was] aware and there [would] not be any political fallout" from canceling Beale's bonus.[3]

Documents obtained by EPW Republicans show that in early 2011, Nancy Dunham with the Office of General Counsel (OGC) instructed employees in OARM to not use Beale's name in any documentation and to stop sending emails and other correspondence until they could confirm whether or not Beale had a "relationship with the CIA or intelligence community."  Pursuant to Dunham's instructions, OGC further instructed OARM "to keep hands off the Beale issue until further notice."  According to documents obtained by EPW Republicans, an OARM official stated that based on instructions from OGC "her office stopped all work on the issue."  Following OGC's instructions, Hooks also told McCarthy to "hold any information exchange" with Beale.[4]  Documents obtained by EPW Republicans show that according to Hooks, he "did not want to get in Beale's way or to compromise national security issues.  That is why the matter was referred to the Office of General Counsel (OGC), Nancy Dunham in particular."  Thereafter, the "OGC never got back to Hooks, and ... Hooks" decided that until OGC advised him otherwise, he would not take further action.  For several months, no action was taken until after Beale announced his plans to retire in May 2011.

Scott Monroe, Director of Human Resources within OAR

Scott Monroe became the Director of Human Resources in the Office of Air and Radiation in 2008, and as such was responsible for overseeing Beale's timecards, and dealing with general personnel matters regarding OAR employees.  According to documents obtained by EPW Republicans, Monroe began to "notice that Beale was never in the office" soon after starting at OAR, and during this time in 2008, Monroe approved Beale's timecards as part of a "mass approval to the [employee] group Beale was in."

Documents obtained by EPW Republicans show that in 2010, Monroe became aware that Beale's retention bonus was causing his salary to exceed statutory limitations.  Acting on this information, Monroe sent an email to Beth Craig on July 16, 2010, with a report detailing the extent of the problems with Beale's retention bonus and salary.[5]  Having reviewed Beale's file and the 2000 retention bonus recertification, he could not find the reason "why the bonus was continued without recertification," according to documents obtained by EPW Republicans.

On December 15, 2010, Monroe contacted OARM, looking for ways to stop payment on Beale's retention bonus.[6]  According to documents obtained by EPW Republicans, on January 12, 2011, Monroe raised the issue of Beale's retention bonus with McCarthy and recommended that she take action to cancel the bonus.  McCarthy responded asking Monroe to "put on hold any information exchange re: John Beale and payroll issues..." per Craig Hooks' request.[7]  Monroe checked in with McCarthy on January 27, 2011, to see if she had heard back from Hooks as he was, "eager to move head [sic] with canceling the bonus."[8]  McCarthy replied, "No he hasn't.  It's now in his hands as far as I am concerned."[9]

After Beale's retirement party in September of 2011, Monroe noticed in March of 2012 that Beale was still filing time cards and collecting pay, then notified McCarthy that it appeared Beale was not retired and still collecting his salary.[10]  It wasn't until November 8, 2012, Monroe sent an email to McCarthy detailing that Beale had been "report[ing] an 8-hour regular schedule."[11]  Subsequently, McCarthy contacted Beale and eventually the Office of General Counsel, which ultimately led to reporting to the OIG and unraveling Beale's fraud.[12]

 

Click here to read Eye on the EPA: Robert Brenner's Role in John Beale Saga.

Click here to read Eye on the EPA: Bob Perciasepe's Role in John Beale Saga.

Click here to read Eye on the EPA: Gina McCarthy's Role in John Beale Saga.

 

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[1] See Federal Directory: Executive, Legislative, Judicial 510 (Fall 2010 ed.); Carroll's Federal Directory: Executive, Legislative, Judicial 574 (Sept./Oct. 2000 ed.).

[2] Beale Dep. 139:1-140:7 (Dec. 19, 2013).

[3] E-mail from Susan Smith, Envtl. Prot. Agency, to Karen Higginbotham, Envtl. Prot. Agency (Feb. 1, 201101:09 PM).

[4] E-mail from Gina McCarthy, Assist Adm'r, Office of Air & Radiation, Envtl. Prot. Agency, to Scott Monroe, Dir. Human Res. Office of Air and Radiation, Envtl. Prot. Agency (Jan., 17, 2011 01:31 PM).

[5] E-mail from Scott Monroe, Dir. Human Res., Office of Air & Radiation, Envtl. Prot. Agency, to Beth Craig, Deputy Assist. Adm'r, Office of Air & Radiation, Envtl. Prot. Agency, (July 16, 2010 10:02 AM).

[6] E-mail from Scott Monroe, Dir. Human Res. Office of Air and Radiation, Envtl. Prot. Agency  to Susan Smith, Envtl. Prot. Agency (Dec. 15, 2010 11:58 AM).

[7] E-mail from Gina McCarthy, Assist Adm'r, Office of Air & Radiation, Envtl. Prot. Agency, to Scott Monroe, Dir. Human Res. Office of Air and Radiation, Envtl. Prot. Agency (Jan., 17, 2011 01:31 PM).

[8] E-mail from Scott Monroe, Dir. Human Res. Office of Air and Radiation, Envtl. Prot. Agency, to Gina McCarthy, Assist Adm'r, Office of Air & Radiation, Envtl. Prot. Agency (Jan. 27, 2011 05:56 PM).

[9] E-mail from Gina McCarthy, Adm'r, Office of Air and Radiation, Envtl. Prot. Agency, to Scott Monroe, Dir. of Human Res., Office of Air and Radiation, Envtl. Prot. Agency (Jan. 27, 2011 08:24PM EST).

 

[10] E-mail from Scott Monroe, Dir. Human Res. Office of Air and Radiation, Envtl. Prot. Agency, to Gina McCarthy, Assist Adm'r, Office of Air & Radiation, Envtl. Prot. Agency (Mar. 29, 2012 09:59 PM).

[11] E-mail from Scott Monroe, Dir. Human Res. Office of Air and Radiation, Envtl. Prot. Agency, to Gina McCarthy, Assist Adm'r, Office of Air & Radiation, Envtl. Prot. Agency (Nov. 8, 2012 05:27 PM).

[12] See Secret Agent Man? Oversight of EPA's IG Investigation of John Beale: Hearing Before the H. Comm. on Oversight & Gov't Reform, 113th Cong. (Oct. 1, 2013) (statement of Patrick Sullivan).





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