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Labor official resigns amid corruption probe

Written by Boston.com Tuesday, 02 August 2011 05:59

WASHINGTON—An assistant secretary at the Department of Labor has resigned after an internal investigation found that he improperly steered federal contracts to friends and former colleagues.

Raymond Jefferson, who headed the department's Veterans Employment and Training Service since 2009, used his position to coerce or intimidate other employees to make the awards without open competition, according to a July 21 report by the agency's acting inspector general, Daniel Petrole.

Jefferson resigned his post on Tuesday, Labor Department spokesman Carl Fillichio said.

A former Army officer who lost all five fingers on his left hand when a hand grenade detonated prematurely during Special Forces training, Jefferson was tapped by President Barack Obama to head the office that helps veterans find jobs and employment training programs.

The report said that Jefferson and other lower ranking officials engaged in conduct "which reflects a consistent disregard of federal procurement rules and regulations, federal ethics principles and the proper stewardship of appropriated dollars."

The investigation was prompted after a whistleblower reported irregularities last year to Sen. Claire McCaskill, D-Mo.

In one case, the report found that Jefferson and a deputy pressured colleagues to hire Stewart Liff, an employee management author and speaker who specializes in boosting employee performance. When that didn't work, Jefferson told subordinates to instruct other contractors to hire Liff as a subcontractor at the highest possible rates.

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Boston.Com

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