Adam Osmond, formerly an accounts examiner for Connecticut’s Department of Economic and Community Development (DECD), blew the whistle loud and clear on the department’s bureaucracy for handing out loans to businesses that were delinquent in repaying previous loans; allowing some businesses to drop interest and repayment; paying high third-party lender fees; inadequately tracking loans; and committing other financial irregularities—all in an effort to make DECD look good.
The department, in other words, was squandering huge amounts of taxpayer money to prop up a false image of its own success.
The agency was handing out free money—no strings attached.
When Osmond brought these financial irregularities to the attention of DECD officials, he was ignored. Then his previously excellent service ratings were downgraded in retaliation, prompting Osmond to report his findings to state auditors. State auditors, in turn, determined that Osmond was right. They castigated the DECD and issued a lengthy list of recommendations for solving the myriad problems plaguing the runaway, irresponsible agency.
But when Osmond sought records related to his case through Connecticut’s Freedom of Information Act (FOIA), the bureaucrats struck back—informing Osmond that it would cost him—over $40,000.
Despite the fact that Osmond was requesting inexpensive electronic documents, he was informed the department would charge him the full rate for printed paper ones—at 35 cents per page for the 167,773 documents requested—adding up to $41,943.25.
Osmond was also informed he would have to pay the outrageous fee upfront before DECD would begin processing his request.
“When I told management about companies that are delinquent receiving new loans, I was told not to say anything, because it is not my job responsibility,” Osmond said in his complaint to state auditors. “Yet I’m the only person [who] prepares the delinquency report, so it is my duty.”
State auditors discovered millions of dollars in improperly granted loans—even loans given without previous financial review—and stated: “DECD should complete its due diligence before providing additional funding to a company, especially if the company is delinquent on past loans or has demonstrated an inability to create and retain jobs.”
The Newton-Foster Agency, for example, got a $150,000 loan to create jobs, but could not account for or improperly spent nearly two-thirds of the money. Ordered to return $92,799, they didn’t. Nonetheless, DECD forgave $72,793 and all interest on the loan—all before giving Newton-Foster another one—for $150,000!
Auditors also discovered that DECD had forgiven $21.5 million in loans and awarded $900,000 to companies already delinquent in payment of previous ones.
In other words, the agency was handing out free money—no strings attached.
Osmond has filed a complaint with the state’s Freedom of Information Commission (FOIC), noting that: “I specifically emphasized that the records be provided in an electronic format to ensure ease of access and review.”
“DECD, like all public agencies, endeavors to comply with the law and be a responsible steward of the taxpayer’s money entrusted to it,” DECD paralegal specialist Loretta Boggan wrote in a response to an inquiry from an investigative news outlet. Incredibly, she also testified that she believed the enormous charge for Osmond’s request was appropriate during an FOIC hearing.
No, unethical bureaucrats most definitely do not like being exposed. They will retaliate—and did, in more ways than their fat FOIA fee.
The Connecticut Commission on Human Rights and Opportunities (CHRO) confirmed it: Osmond was discriminated against after filing his complaint by being refused an interview opportunity for a job opening at the DECD.
“Mr. Osmond introduced sufficient evidence to establish a causal connection between the denial of the interview and his whistleblowing,” the CHRO stated. “The denial of an interview was DECD’s first opportunity to retaliate.”
Osmond has now been guaranteed an interview for any DECD job openings for which he might apply over the next two years.
The FOIA matter, on the other hand, remains unresolved.
But the moral is plain: Hell hath no fury like a bureaucrat caught.
