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The Election Over, DOJ Accuses Gallup Of Fraud

From an unblinking Washington Post:

Gallup accused of bilking government

By Sari Horwitz | November 28, 2012

The Justice Department accused the Gallup Organization on Wednesday of bilking federal agencies out of millions of dollars by routinely inflating prices for contracts.

In fact, this is the lawsuit that the DOJ joined back in August, after Axelrod threatened them over their polling methodology in April.

The 57-page civil complaint says that Gallup, the world’s best-known polling organization, inflated estimates for the number of hours that it would take to perform its polling services for the Treasury and State departments. The Justice Department accused Gallup of submitting false invoices totaling $13 million.

Federal officials also accused Gallup of negotiating to hire a federal employee who was responsible for Gallup’s contract at the Federal Emergency Management Agency while it was trying to get more funding from FEMA…

The allegations were first brought to the Justice Department by former Gallup employee Michael Lindley, who said he saw Gallup repeatedly inflate its prices while negotiating single-bidder contracts with government agencies.

Lindley was 27 when he was hired in 2008 as director of client services in Gallup’s Washington government division. His job was to help Gallup partners prepare cost estimates for budgets submitted to government agencies on proposals and contracts…

In fact, Mr. Lindley was a field organizer in Council Bluffs, Iowa, for then Obama’s 2008 run for President before joining Gallup. Another detail that the Post fails to mention.

“I knew something was wrong,” Lindley said in an interview. “It was two sets of books. He wanted me to create a different internal budget that was vastly reduced in comparison to the official budget that had been submitted to the Mint.”

The practice allowed Gallup to earn outsized profits from its government business, according to the Justice Department. Two Gallup partners frequently boasted that the profit margins on government contracts were among the highest in the company, according to the suit…

This may be true. Government contracts regularly supply the highest profit margins for contractors. They always overpay, since it is not their money.

Lindley also discovered that Gallup had promised a job to FEMA official Timothy Cannon, who was instrumental in obtaining a multimillion-dollar contract for Gallup…

Mr. Lindley was quite the busy bee.

In 2009, Lindley was honored by Gallup as “Rookie of the Year,” given a raise and selected to attend partnership boot camp.

So he was treated very well by Gallup, and on the road to higher things.

But later that year, after months of raising concerns about the contracts, Lindley took his complaints to his supervisor again, according to court documents. “I told my supervisor, ‘If you don’t end this practice, I’m going to the Department of Justice,’ ” Lindley said.

Lindley was fired the next day by Gallup’s chief counsel, Steve O’Brien, according to court documents. “When you start talking about going to the Department of Justice, we don’t trust you anymore,” O’Brien told Lindley, according to the documents…

Lindley turned down a severance package and contacted an attorney, Janet Goldstein of Vogel, Slade & Goldstein. Goldstein and another firm filed a civil suit against Gallup on Lindley’s behalf three years ago.

A cynical person might even think Mr. Lindley was a ‘sleeper agent,’ who only went to Gallup to try to find a way to put them under the control of the Obama campaign.

This article was posted by Steve Gilbert on Thursday, November 29th, 2012. Comments are currently closed.

2 Responses to “The Election Over, DOJ Accuses Gallup Of Fraud”

  1. GetBackJack

    DOJ itself is the second greatest fraud the world has ever seen. The first greatest is everything and anything by the hand of the Democrat Mafia

  2. Who do we sue for the Federal govt. bilking tax payers?

    These Obamanists have made it very clear that dissent from the party line is not tolerated and those who do not goose step in harmony will receive retribution.




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